Potential Mercosur-South Korea free trade agreement: SECEX launches public consultation

The Brazilian Secretariat of Foreign Trade (Secex), within the Ministry of Development, Industry, Trade, and Services, issued Circular No. 25, dated March 31, 2026, opening a public consultation on the possible negotiation of a free trade agreement between Mercosur and South Korea.

The opinions received from interested parties should contribute to establishing Brazil’s negotiating position in Mercosur discussions and to identifying opportunities and challenges across different sectors of the Brazilian economy.

OPPORTUNITIES AND CHALLENGES

For Brazilian companies with current or prospective trade flows with South Korea, the consultation provides an important opportunity to articulate both offensive interests and defensive sensitivities regarding a potential agreement.

In practical terms, exporters may use this channel to identify products of interest, tariff priorities, market access barriers and regulatory constraints affecting entry into the South Korean market. In turn, domestic industries may highlight sectors particularly sensitive to increased competition from Korean products, and importers may highlight issues related to sourcing, input costs, customs treatment, technical requirements, and the broader impact of a potential agreement on supply chains and competitiveness in Brazil.

For Korean companies with operations in Brazil, a well-prepared submission may be particularly valuable. It offers an opportunity to advocate for:

• Greater regulatory certainty;
• Provisions aimed at reducing trade and compliance costs;
• Rules of origin compatible with global and regional supply chains; and
• Treatment that preserves or encourages existing and future productive investment.

Korean companies already established in Brazil may also be especially well placed to provide the Brazilian government with practical input on local operations, supply chains, tariff and non-tariff barriers, regulatory requirements and the potential impact of the agreement on import, export and new investment flows.

The official record shows that Secex has previously relied on public consultations and meetings with the private sector to identify sensitivities and offensive interests, as well as to update business priorities throughout the process.

Once the consultation period closes, Secex is expected to consolidate and assess the submissions received as part of Brazil’s internal process for forming its position within Mercosur. On its own, the consultation does not trigger the automatic launch, formal resumption, or conclusion of the agreement.

If the process advances politically and technically, the next stages will generally still require:

• Possible resumption or further development of negotiations between Mercosur and South Korea;
• Intra-bloc alignment on scope and text; and
• Execution of the final instrument and, thereafter, the applicable domestic approval, ratification, and promulgation procedures for each party.

In other words, the consultation is a relevant step in shaping Brazil’s position, but does not, by itself, guarantee the immediate resumption of negotiations or implementation of the agreement.

PARTICIPATION

Submissions must be filed within 45 days counted from the publication of the consultation on April 1, 2026, exclusively through the electronic form available at the SISCOMEX website. At a minimum, the form must include:

• The participant’s full name and, where applicable, the institution represented;
• Identification documents; and
• An email address.

The circular further provides that the information submitted may be publicized, except where protected by applicable law, and that submissions made in any format not provided for will be disregarded.

In our experience, coordinated and technically consistent submissions tend to carry greater weight in the position-forming process.

Demarest’s International Trade and Customs and Korea Desk teams are available to provide further information and assist in drafting and reviewing submissions.