India and the South American trade bloc — MERCOSUR — have decided to expand their existing Preferential Trade Agreement (PTA) and conclude the negotiations within a year of launch.
“The expansion of the agreement should be substantial, aiming for a significant share of bilateral trade to benefit from tariff preferences. The expansion of the agreement should cover both tariff and non-tariff issues related to trade and economic partnership,” India–Brazil Joint Declaration for Deepening of Mercosur–India Trade Agreement said.
MERCOSUR includes Brazil, Argentina, Bolivia, Paraguay, and Uruguay. Chile, Colombia, Ecuador, Peru, Guyana, and Suriname of the trade bloc.
To get the exercise going both sides will set up a technical dialogue and hold a meeting of the Joint Administration Committee created under the existing PTA at the earliest to define the scope of the expansion.
“Parties should endeavour to conclude the negotiations within one year from the launch of negotiations,” the joint declaration said.
The declaration for Deepening of MERCOSUR-India Trade Agreement was issued after the meeting on Thursday in New Delhi between the Vice President of Brazil and Minister of Development, Industry, Trade and Services, Geraldo Alckmin, and commerce and industry minister Piyush Goyal.
It was also decided to involve the private sector and other stakeholders to support the negotiation process.
“In addition, the Brazilian side indicated that it will work in a coordinated manner with its MERCOSUR partners towards a substantial, swift, and mutually beneficial deepening of the Agreement,” the declaration added.
The existing PTA between India and MERCOSUR was signed in January 2004 and became operational in June 2009.
The agreement gives tariff concessions of 10% to 100% on 450 products from India and 452 products from MERCOSUR.
The bilateral trade between India and MERCOSUR stood at $ 17.9 billion in 2024-25 with India’s exports at $ 8.19 billion and imports at $ 9.73 billion.
Brazil is the biggest trading partner on the bloc with India’s exports at $ 6.77 billion and imports of $ 5.43 billion. India’s exports to Argentina were $ 1.01 billion and imports were at $ 3.73 billion.
The exports from India to Brazil and Argentina are dominated by petroleum products, automotive, machinery, chemicals and iron and steel. The imports from Brazil include sugar and its products, oils and fats, petroleum. Machinery and iron and steel. Argentina is a big exporter of vegetable and animal fats, precious and semi precious stones.
