Conclusion of the EFTA–MERCOSUR Free Trade Agreement: GIs and more

At the MERCOSUR Summit Meeting in Buenos Aires on July 2 and 3, 2025, the member states of MERCOSUR (Argentina, Brazil, Paraguay, Uruguay) and the EFTA states (Iceland, Liechtenstein, Norway, Switzerland) announced the conclusion of negotiations for a Free Trade Agreement (FTA). This agreement aims to create a free-trade zone encompassing nearly 300 million people and a GDP of over $4.3 trillion, enhancing market access for more than 97% of exports, which is expected to boost bilateral trade and benefit both businesses and consumers.

The chapter on Intellectual Property Rights (IPR) in the Free Trade Agreement (FTA) outlines essential principles, including national treatment, Most-Favored-Nation (MFN) status, and a review clause for future improvements. It includes an annex that addresses various IPR elements, including copyrights, trademarks, patents, industrial designs, geographical indications (GIs), and enforcement measures.

The chapter draws on significant obligations from major international IPR agreements, particularly the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). It encourages the ratification of additional IPR agreements.

Copyright provisions protect the rights of authors, phonogram producers, and broadcasting organizations, while trademark regulations focus on the protection of well-known marks and compliance with key trademark agreements. For industrial designs, protection terms vary, with a minimum of 25 years for EFTA States and Brazil, and 15 years for Argentina, Paraguay, and Uruguay. Patent provisions uphold TRIPS principles and include measures for procedural transparency.

IPR enforcement encompasses various measures to ensure strong protection, including provisional steps and civil and criminal remedies. The chapter also specifies the protection of over 110 Swiss GIs for multiple products, such as wine and dairy, including notable examples like Gruyère and Sbrinz.

The FTA will provide new opportunities for small and medium-sized enterprises, improving customs regulations, trade predictability, and legal certainty. It will be comprehensive, covering goods, services, investment, intellectual property, government procurement, competition, and sustainable development, among other areas.

Negotiations began with exploratory talks in March 2015 and a first round in June 2017, culminating in 14 rounds of discussions. An intensified negotiation process since early 2025 has resulted in significant advancements, leading the parties to commit to signing the FTA within the coming months.