Negotiations for the expansion of India-Mercosur Preferential Trade Agreement (PTA) will be in New Delhi early next month to discuss further and widening the list of goods with preferential tariffs covered under this agreement.
The meeting would be attended by members of Brazil, Paraguay, Uruguay and Argentina and senior officials from the external affairs and the commerce and industry ministries.
The PTA has been covered 450 items each of India and Mercosur exports since it become operational in June 2009. The latter has become a successful regional market with GDP of $2 trillion. It is the third largest integrated market after EU and NAFTA. Its full members are Argentina, Brazil, Uruguay and Paraguay.
Talking to FE, senior officials in the foreign ministry said that, ??The talks for expanding the lists has been scheduled for next month.??
??Mercosur has already drawn up their list of 1,600 items and the Indian commerce ministry is starting the list collection. Indian exporters, export promotion councils and trade and industry bodies have been presenting their cases to the ministry, mentioning the item with the Harmonised System code and percentage of preference they desire,?? R Vishwanathan, Indian ambassador to Argentina, Uruguay and Paraguay told FE.
With the signing of the PTA, it has been expected that the India and Mercosur trade would double to $10 billion in the next 3 to 5 years.
While, the PTA contemplates lowering of tariffs for a list of specific products which include chemical components, some agricultural items, household appliances and petrochemicals, pharma ceutical products and components, vaccines, industrial machinery ( for India into Mercosur).