Brazilian foreign minister Celso Amorim described the India-Mercosur agreement as a path-breaking pact of extreme importance which would open new doors to trade among member nations.
According to Indian commerce minister Kamal Nath, the operationalisation of the PTA was an important milestone in the economic history of the five signatory countries. The countries would now be looking forward to increasing the coverage of products as well as deepening the preferences in the PTA so that they make the transition from a PTA to a FTA a reality in the future, he said.
The aim of the agreement is to expand and strengthen the existing relations between Mercosur and India and to promote the expansion of trade by granting reciprocal fixed tariff preferences with the ultimate objective of creating an FTA between the parties.
India had a total trade of $1.5 billion with the Mercosur during calendar year 2004.