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Mercosur Launches Preferential Trade Agreement Talks With Vietnam

• By  Textile Excellence
• January 03, 2026

Brazilian Foreign Minister Mauro Vieira, during the 67th Mercosur Summit held in Foz do Iguaçu, Brazil, on December 20 announced the launch of negotiations for a Preferential Trade Agreement (PTA) between the Southern Common Market (Mercosur) and Vietnam.

A preferential trade agreement between Mercosur and Vietnam in the future will make it easier for Vietnamese garments to penetrate the South American trade bloc

Speaking on behalf of Mercosur’s rotating presidency, Foreign Minister Mauro Vieira emphasised that Vietnam is an important trading partner for the South American bloc and highlighted the growing potential for deeper economic cooperation.

Vietnam and the South American trade bloc Mercosur - comprising Brazil, Argentina, Uruguay and Paraguay – have stepped up efforts for a free trade agreement too.

With a geographical area exceeding 14 million square kilometres, abundant and diverse natural resources, a population of more than 300 million, and a combined GDP of over US$ 2.9 trillion, Mercosur is not only a dynamic and effective model of deep regional integration, but also a partner of strategic importance for Vietnam.

Vietnam is of growing strategic importance to Mercosur not only as a fast-expanding market but also as a gateway to Southeast Asia and the wider Asia-Pacific region. As a member of ASEAN and one of the most open economies in the region, Vietnam is deeply integrated into global trade networks through a broad system of free trade agreements, including the Comprehensive and Progressive Agreement for Trán-Pacific Partnership (CPTPP), Regional Comprehensive Economic Partnership (RCEP) and EU-Vietnam Free Trade Agreement (EVFTA). For Mercosur, closer ties with Vietnam offer a platform to strengthen its presence in Asia, the world’s most dynamic growth region, while diversifying trade relations beyond traditional partners.

At the same time, the economic structures of Vietnam and Mercosur are highly complementary rather than directly competitive. Mercosur’s strengths in large-scale agriculture and natural resources align well with Vietnam’s growing demand for raw materials and its advantages in manufacturing, processing, electronics and textiles. In the context of increasing global trade uncertainties and supply-chain disruptions, Vietnam is viewed by Mercosur as a stable, reliable and long-term partner, capable of supporting efforts to diversify production, supply and export markets on both sides.

Brazil is currently Vietnam’s largest trading partner in Latin America. Bilateral trade between the two countries has expanded rapidly over the past decade, rising from US$ 1.53 billion in 2011 to US$ 6.78 billion in 2022, surpassing US$ 7.1 billion in 2023, and reaching approximately US$ 7.7 billion in 2024.

Both sides have set ambitious targets, aiming to increase bilateral trade turnover to US$ 10 billion by 2025 and US$ 15 billion by 2030.

Vietnam’s main exports to Brazil include seafood, rubber, textiles and garments, footwear, and iron and steel products, while its imports from Brazil consist primarily of soybeans, wheat, corn, animal feed and raw materials, and various types of cotton.

Vietnam is of growing strategic importance to Mercosur not only as a fast-expanding market but also as a gateway to Southeast Asia and the wider Asia-Pacific region. As a member of ASEAN and one of the most open economies in the region, Vietnam is deeply integrated into global trade networks through a broad system of free trade agreements, including the Comprehensive and Progressive Agreement for Trán-Pacific Partnership (CPTPP), Regional Comprehensive Economic Partnership (RCEP) and EU-Vietnam Free Trade Agreement (EVFTA).