India to get into trade pacts with Brazil, Colombia, Chile

Amiti Sen

New Delhi, June 6: INDIA will get into preferential trade agreements (PTA) with Brazil, Colombia and Chile soon.

Speaking to The Financial Express, official sources said that talks with all the three Latin American countries are going on and the agreements may be finalised within the next few months. “We are working hard on the prospective agreements. If things go smoothly in the three countries, we may be ready to sign the agreements in as little as three months time.”

Sources said that the list of commodities which are to be included in the agreements have not been finalised yet. We hope to prepare the list soon with consultation with the respective countries, sources added.

Brazil holds great potential for Indian exporters, especially in the fields of chemicals and pharmaceuticals, textile and clothing, engineering goods, machinery, electronic and electric components, plastic and rubber items, handicrafts, leather goods, automobile parts, food products and semi-precious stones and jewellery.
The possibility of entering into joint ventures exist in pharmaceuticals, energy, telecommunication, information technology, transport, projects & consultancy and engineering goods.

India’s exports to Brazil increased by 60 per cent in 2000 to $271 million after experiencing a downturn in 1998 and 1999 due to the East-Asian crisis. In the first quarter of the 2001, exports experienced an increase of 167 per cent compared to exports in the first quarter of 2000.

India and Brazil have already signed a memorandum of understanding (MoU) in November 2000 for setting up India Brazil Task Force in the IT sector. Brazilian states that have shown interest in collaborating with India include Ceara, Rio de Janeiro, Amazonas, Minas Gerais, Santa Catarina, Pernambuco and Sao Paulo. India’s exports to Chile include engineering goods, dried pepper, fuel oil, shellac, cyanide & cyanide oxide, mineral material, tyres & tubes, polyester fibre, garments, sports goods, electronic goods, picture tubes, video monitors etc. Prospects for trade expansion exists in items like coir & coir manufactures, iron & steel bars/rods, organic, inorganic & agro chemicals, engineering products, garments, electronic items and medical equipment.

Colombia too holds great potential for India in a number of sectors including textiles, pharmaceuticals, chemicals, automobile parts, iron products, garments and tyres & rubber products.

India’s exports to Colombia rose 28.3 per cent during 2000 to reach $64.941 million. During the first two months of the current year, exports touched $ 12.956 million, which was 39.6 per cent higher compared to the same period last year.

The Centre is hopeful that the signing of the preferential trade agreements would give a boost to business with the three countries, which seem to hold a lot of potential.