India, Brazil agree to deepen MERCOSUR-India trade pact

India and Brazil Agree to Deepen MERCOSUR–India Trade Pact

Key Points:

1. Objective of the Meeting:
   • India and Brazil have agreed to expand and deepen the MERCOSUR–India Preferential Trade Agreement (PTA) to boost bilateral trade and investment.
   • The understanding was reached during a meeting in New Delhi between Commerce and Industry Minister Piyush Goyal and Brazil’s Vice President and Minister of Development, Industry, Trade and Services Geraldo Alckmin.
2. Background of the Agreement:
   • The MERCOSUR–India Framework Agreement was originally signed on 17 June 2003, marking the foundation for enhanced economic and trade cooperation.
   • The existing Preferential Trade Agreement (PTA) came into force in 2009, covering limited tariff concessions between India and MERCOSUR members — Brazil, Argentina, Paraguay, and Uruguay.
3. Expansion Roadmap Agreed Upon:
   • Both sides agreed that the expansion of the trade pact should be substantial, covering a significant portion of bilateral trade under tariff preferences.
   • The new framework will address both tariff and non-tariff barriers and explore broader economic partnership areas.
   • Private sector consultations will be undertaken to align negotiations with business interests and market realities.
4. Institutional Mechanisms and Timelines:
   • A technical dialogue will be initiated soon to define the scope and priorities of the expansion.
   • An early meeting of the Joint Administration Committee (JAC), established under Article 23 of the existing PTA, will be convened to advance discussions.
   • Both parties aim to conclude negotiations within one year of their formal launch.
5. Brazil’s Commitment:
   • The Brazilian delegation assured active coordination with other MERCOSUR partners to ensure that the process of deepening the agreement remains swift, substantial, and mutually beneficial.
   • Brazil reaffirmed its interest in promoting closer trade ties with India as part of its broader South–South cooperation strategy.
6. Significance of the Move:
   • The proposed expansion is expected to enhance market access, diversify exports, and strengthen supply chain linkages between India and Latin America.
   • It reflects India’s growing engagement with emerging economies of the Global South and its effort to rebalance trade partnerships beyond traditional markets.

Static Data for Revision:

• MERCOSUR Members: Brazil, Argentina, Paraguay, Uruguay
• Existing PTA Signed: 2004 (came into effect in 2009)
• Framework Agreement Signed: June 17, 2003
• Indian Minister: Piyush Goyal, Minister of Commerce and Industry
• Brazilian Counterpart: Geraldo Alckmin, Vice President of Brazil
• Objective: Expansion of PTA to cover wider tariff lines, address non-tariff issues, and enhance investment cooperation
  
  Updated - 16 Oct 2025 ; 10: 34 PM | DD News