To meet the growing shortage of crude sunflower oil, India and MERCOSUR are in talks to make amendments to the existing Preferential Trade Agreement (PTA) between the two sides. The plan is to have long term contracts with some of the MERCOSUR member countries – Brazil & Argentina to import crude sunflower oil. Such a step is being taken in view of the ongoing Russia-Ukraine crisis because of which the imports from Ukraine have been disrupted. This has led to skyrocketing edible oil prices.

All the member countries of the grouping and India have had two rounds of talks in March, with Secretary for Economic Relations in the Ministry of External Affairs Dammu Ravi leading the Indian side.

Top officials confirmed to Financial Express Online, “Two rounds of talks between the two sides have already taken place and the next round is expected to take place soon.” 

The officials clarified this is being done to make it easier for the two sides – to increase the export of edible oil from the MERCOSUR. “Besides edible oil the talks are also focused on getting more soy.

India is unilaterally working on bringing down the tariffs or to remove them completely as it will help in the imports of the sunflower oil from South American nations – Brazil & Argentina.

According to sources, the two sides have also talked about doing away with the stringent testing required for this kind of oil and other agri-food from those countries under the existing PTA.

The member countries had the meeting with top officials from India virtually and the focus was also on deepening of commercial ties. According to reports, Argentina, one of the member countries of MERCOSUR is one of the leading exporters of sunflower oil in the world.

Who was present at the special talks?

At the talks, the Indian side was led by Secretary for Economic Relations in the Ministry of External Affairs Dammu Ravi, and the Secretary for the Department of Food and Public Distribution, Sudhanshu Pandey.  And, the MERCOSUR side was led by the General Director of Economic Policy, Ambassador Enrique Franco, and there were top officials representing Argentina, Brazil and Uruguay. Since the meetings have been taking place virtually the envoys of the member nations led by Ambassador Fleming Raúl Duarte of Paraguay and other senior officials.

Expansion of the existing PTA

India is keen on upgrading its present relations with MERCOSUR to a Comprehensive Economic Partnership agreement.

India-MERCOSUR PTA

India is already in talks with individual member countries to fast track the negotiations for expansion of the PTA which will help in achieving a set trade target of USD 30 billion.

Which are the member countries?

Argentina, Brazil, Paraguay and Uruguay form the Mercosur.