Brazil has enacted a long-awaited free trade agreement with the Palestinian Authority, demonstrating solidarity with the Palestinian people. According to Brazil's foreign ministry, the agreement, which had awaited ratification for over ten years, aims to contribute tangibly to the economic viability of a Palestinian state that can coexist peacefully with its neighbors. Brazil, which recognized a Palestinian state and permitted the establishment of a Palestinian embassy in Brasilia in 2010, formally ratified the agreement on July 5. The pact was initially signed in 2011 between the Mercosur trade bloc of South America and the Palestinian Authority.

While Brazil has moved forward with ratification, it remains uncertain whether other Mercosur members will follow suit. Argentina's current right-wing administration under President Javier Milei is not anticipated to do so. There has been no immediate response from the foreign ministries of Uruguay and Paraguay regarding their stance on the matter.

The Palestinian ambassador to Brasilia, Ibrahim Al Zeben, praised Brazil's decision as "courageous, supportive, and timely," emphasizing that it represents a significant step toward supporting peace efforts in Palestine. He expressed optimism that trade between Palestine and Mercosur, currently amounting to only US$32 million annually, will expand as a result.