Vietnam – MERCOSUR to Launch PTA Negotiations in Q1/2026

Vietnam – MERCOSUR to Negotiate Preferential Trade Agreement in Q1/2026

In the first quarter of 2026, Vietnam and the Southern Common Market (MERCOSUR) will conduct the first round of negotiations for a Preferential Trade Agreement (PTA).

On the evening of December 20, 2025 (Vietnam time), at the 67th MERCOSUR Summit held in Foz de Iguazu, Brazil, member countries of the Southern Common Market (MERCOSUR)—comprising Argentina, Brazil, Paraguay, and Uruguay—issued a Joint Statement launching negotiations for the Vietnam – MERCOSUR Preferential Trade Agreement (Vietnam – MERCOSUR PTA).

This future agreement marks a significant milestone in promoting trade between MERCOSUR and Vietnam, contributing to strengthening the relationship between Vietnam and the South American bloc.

On this occasion, Industry and Trade Newspaper conducted an interview with Commercial Counselor Pham Hong Trang, Vietnam Trade Office in Brazil.

A Door to a Market of 300 Million People Reporter: Ma’am, following the launch of PTA negotiations between Vietnam and Pakistan in October 2025, the MERCOSUR bloc has now also agreed to launch a PTA with Vietnam. This is a joyful signal for the country’s trade. Could you please share the expectations for this agreement?

Commercial Counselor Pham Hong Trang: Recently, on December 20 in Brazil, the MERCOSUR bloc issued a Joint Statement launching the Vietnam – MERCOSUR PTA negotiations.

It is expected that in the first quarter of 2026, the parties will conduct the first round of negotiations for this Preferential Trade Agreement. This is a fine result, achieved after many efforts from both sides, and simultaneously demonstrates Vietnam’s efforts after pursuing negotiations for this Agreement for over 6 years.

The MERCOSUR bloc is a very potential market for Vietnam, with a population of approximately 300 million people. The market has huge demand, and technical standards are not overly strict, making it very suitable for Vietnam’s export goods, especially key products with competitive advantages such as electronics, textiles, footwear, and seafood.

However, MERCOSUR is also known as one of the markets with high protectionism. Therefore, launching the Vietnam – MERCOSUR PTA negotiations, with the expectation of concluding them within 2026, will open a new door for the domestic business community.

Through the Vietnam – MERCOSUR PTA, Vietnamese goods will be able to take advantage of tariff line reductions. In this PTA, both sides will focus on negotiating directly on cutting tariff lines. Thus, Vietnamese goods will enhance their competitiveness and possess significant advantages when penetrating major markets within the bloc such as Argentina, Brazil, Paraguay, and Uruguay.

Moreover, the MERCOSUR market is also considered a gateway to introduce Vietnamese goods to the South American region in general.

Strategic Sectors for Export Reporter: The potential opportunities for Vietnamese goods through the Vietnam – MERCOSUR PTA are clear. So, which are the potential industries for Vietnam to boost exports to this market bloc?

Commercial Counselor Pham Hong Trang: For the Vietnam – MERCOSUR PTA, currently, Vietnam will focus on negotiating to cut tariff lines for items where Vietnam has strengths, such as seafood, textiles, and footwear.

These items are currently witnessing a fairly sustainable export growth rate to the MERCOSUR market. However, they need “pushes” and benefits from preferential policies to create new breakthroughs. Previously, seafood, textiles, and footwear faced difficulties entering this market due to very high applied tariffs. Now, Vietnam will focus on negotiating tax reductions for these strong items.

Some other items such as wood products, transport vehicles, and electronic components are predicted to be items with leapfrog growth in the coming time, especially when the Vietnam – MERCOSUR PTA is signed.

Recommendations for Businesses Reporter: From the host market, what recommendations does the Vietnam Trade Office in Brazil have for domestic enterprises? What are the Trade Office’s plans and orientations to support businesses in participating deeper in the MERCOSUR market in the coming time?

Commercial Counselor Pham Hong Trang: MERCOSUR is a market with a rather long geographical distance from Vietnam, along with language barriers and cultural differences. Therefore, when Vietnamese enterprises export to this market, they need to pay attention to researching market information and consumer trends very carefully.

Vietnamese enterprises need to check and verify partner enterprises very thoroughly before proceeding with negotiations and signing contracts to avoid disagreements and potential risks.

The MERCOSUR market does not demand overly high quality standards. However, orders must ensure consistency; prices must be competitive; and designs must change continuously to meet the consumer needs of partner countries.

Currently, the Vietnam Trade Office in Argentina and the Vietnam Trade Office in Brazil are the two offices in charge of the Southern Common Market (MERCOSUR). Both Trade Offices have websites and regularly publish market information publications. These publications focus on recommendations and guidelines for businesses regarding the market, consumer demand, as well as steps to be taken during the trading and cooperation process.

The Trade Office is always ready to accompany and support businesses to understand the market, find potential partners, as well as provide specific guidance on preparing dossiers for export, and recommendations on packaging, specifications, and standards.

Parallel to the task of performing well the role of connection and trade promotion, the Trade Office always accompanies businesses in accessing the market, handling obstacles, preventing risks, utilizing FTAs, and participating deeper in the international supply chain. Particularly, the Trade Office prioritizes support for Small and Medium Enterprises (SMEs) and local enterprises, contributing to expanding the export foundation and diversifying markets.

Reporter: Thank you, Ma’am!