Case study

Swiss free trade with Mercosur

Swiss buyers of Brazilian goods and raw materials also have a responsibility to protect nature and indigenous communities in the Amazon. Voices demands that they be held accountable in the planned free trade agreement.

 

Press conference of indigenous delegates from Brazil in Bern: Elizeu Guarani Kaiowá, Sonia Guajajara and Kretã Kaingang Press conference of indigenous delegates from Brazil in Bern: Elizeu Guarani Kaiowá, Sonia Guajajara and Kretã Kaingang

Negotiations between EFTA (Switzerland, Liechtenstein, Norway, Iceland) and Mercosur (Brazil, Uruguay, Paraguay, Argentina) on the joint free trade agreement were concluded in July 2025. The next step is for the text to be submitted to parliament and approved by it. Voices is critically monitoring developments and clearly advocates that free trade with Mercosur must not come at the expense of environmental protection and the rights of indigenous communities. Coronavirus, disagreements on environmental and other issues, and legal clarifications: in recent years, reasons have repeatedly been put forward to explain the slow progress of negotiations on the EFTA-Mercosur free trade agreement. The fact is that the negotiations were essentially concluded in 2019. Six years later, the text is still awaiting approval by parliament. And unlike the EU, EFTA has not yet published the text of the agreement.

This means that only limited statements can be made at present about the exact content of the agreement and its likely impact on people and the environment. One thing is certain: while the exploitation of nature and indigenous communities continues under the Lula government, European countries also have a responsibility as buyers of Brazilian products. In recent years, Switzerland, for example, has imported animal feed, beef, gold, and palm oil from Brazil, including from the Amazon region.

From Voices’ perspective, the chapter on sustainability will be decisive in determining how the entire free trade agreement is assessed from a human rights perspective. If it is not subject to arbitration, like all other chapters of the agreement, it will remain toothless and ineffective. Voluntary recommendations are not enough to prevent violations of indigenous rights and environmental destruction, which are still commonplace in Brazil. Binding control and sanction mechanisms in these areas are therefore the absolute minimum (see demands).

Voices’ partners also doubt that the agreement will improve their situation. Back in 2019, the Brazilian Indigenous umbrella organization APIB traveled to Switzerland to share its concerns about a free trade agreement between EFTA and Mercosur. Former President Bolsonaro, one of their main arguments against the agreement, is no longer in office. However, most of the problems from back then still exist, and there is a high risk that a free trade agreement will intensify problems such as expropriation, pollution, and displacement of the indigenous population instead of solving them. Recent legal developments are further exacerbating the situation. APIB also criticizes the lack of transparency and opportunity for co-determination.Together with its partners, Voices will decide how we position ourselves and whether the agreement is in the interests of our partners in Brazil if it is accepted by parliament. One thing is clear: from an indigenous perspective, the trade agreement is only legitimate if it contributes to protecting the environment and strengthening indigenous communities.

Red lines: Minimum conditions for a free trade agreement with Mercosur

The Swiss Mercosur Coalition, of which Voices is a member, has established minimum conditions in consultation with its partners from the Mercosur countries. Only if these conditions are met will Voices consider supporting the agreement:

  • The agreement must include a binding sustainability chapter, with reference to the concrete implementation
  • of the Paris Climate Agreement and the UN Convention on Biological Diversity
  • of the Sustainable Development Goals (SDGs)
  • relevant international human rights agreements, in particular the UN Declaration on the Rights of Peasants and the UN Declaration on the Rights of Indigenous Peoples (UNDRIP)
  • international labor standards (in particular ILO conventions)
    • The sustainability chapter must meet the following conditions:
  • ambitious and measurable goals
  • effective control mechanisms
  • binding sanction mechanisms

Position paper on free trade (in german)

Indigenous delegation visited Switzerland in 2019

In fall 2019, a delegation of indigenous leaders traveled through Europe to draw European countries’ attention to their responsibility in trade with Brazil. Voices accompanied the delegation in Switzerland. It supports their call for Switzerland to take action and commit to fair and sustainable economic relations.

Rally in Bern on trade with Brazil

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