India and Brazil have expressed their commitment to strengthen and expand the MERCOSUR–India Preferential Trade Agreement (PTA), aiming to boost trade and investment between the two sides. The announcement came during the visit of Brazil’s Vice President and Minister of Development, Industry, Trade and Services, Geraldo Alckmin, who met with India’s Minister of Commerce and Industry, Piyush Goyal, in New Delhi.
Both leaders welcomed the interest of India and MERCOSUR Member States in deepening the existing trade agreement to create a more substantial and mutually beneficial economic partnership. They recalled the Framework Agreement signed on 17 June 2003, which was designed to strengthen bilateral relations and promote trade expansion in line with WTO rules and disciplines.
Key points agreed upon during the meeting include:
- The expansion of the Agreement should be substantial, allowing a significant portion of bilateral trade to benefit from tariff preferences.
- The expansion should cover both tariff and non-tariff issues, addressing broader aspects of trade and economic cooperation.
- Active participation of the private sector and other stakeholders will be encouraged to support the negotiation process.
- The next step involves establishing a technical dialogue between the Parties, including convening the Joint Administration Committee under Article 23 of the PTA to define the scope of the expansion.
- Both sides aim to conclude the negotiations within one year from the launch of discussions.
The Brazilian delegation also emphasized its intention to work closely with MERCOSUR partners to ensure that the deepening of the agreement is substantial, timely, and mutually beneficial.
This development reflects India’s ongoing efforts to strengthen trade relations with Latin American countries and expand market access for Indian goods and services, while also promoting investment opportunities between the two regions.
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