New Delhi, September 16 (APAC Media): India and the South American trade bloc MERCOSUR have launched negotiations to expand their existing Preferential Trade Agreement (PTA), marking a significant step towards deepening economic ties and widening market access for businesses on both sides.
Commerce Minister Piyush Goyal and Uruguay’s Foreign Affairs Minister Mario Lubetkin announced the launch of negotiations on Monday.
Both sides have agreed to expand the existing pact to cover areas of mutual interest, with the aim of creating greater economic opportunities for their respective private sectors.
India-MERCOSUR Trade Pact Set for Major Expansion
India has maintained a PTA with MERCOSUR since June 2009, but the agreement has a relatively limited product coverage. It currently covers around 450 Indian tariff lines and 452 MERCOSUR tariff lines, with tariff concessions ranging from 10% to 100%.
The proposed expansion could broaden the framework for India’s engagement with one of South America’s key regional trading blocs, particularly as Indian exporters seek wider international markets.
Experts noted that the existing agreement has supported trade since 2009 but remains limited, including its exclusion of services. They said a broader framework could create greater scope for trade while supporting more balanced, mutually beneficial economic relations.
India, MERCOSUR Target Comprehensive Trade Framework
Both sides are looking to eventually upgrade the existing PTA into a comprehensive Free Trade Agreement (FTA) covering goods, services, and investments.
Such an expanded framework could provide wider market access, reduce trade barriers and strengthen opportunities for Indian businesses across the MERCOSUR market.
Indian exporters currently face challenges including high tariffs, logistical constraints, regulatory complexities and cultural differences in the MERCOSUR market. Expanding and institutionalising trade relations could help address some of these barriers over time.
Electronic Certificates Mark Step Towards Paperless Trade
Alongside the negotiations, India and MERCOSUR signed their first additional protocol on the acceptance of electronic certificates of origin, marking a move towards paperless trade and more modern customs procedures.
The protocol was signed by Commerce Secretary Rajesh Agrawal, Uruguay’s Ambassador to India Alberto Guani and Paraguay’s Ambassador to India Fleming Raul Duarte Ramos.
The development adds a digital trade facilitation component to the broader India-MERCOSUR engagement, as both sides work towards expanding the scope of their economic partnership.
Also Read:Â
