Republic World - 11 September 2023
India and Brazil to work together to expand India-Mercosur PTA
Mercosur, a Latin American trading bloc comprising Brazil, Argentina, Uruguay, and Paraguay, was at the centre of discussions in India-Brazil bilateral meeting.
India and Brazil have joined forces to expand the India-Mercosur Preferential Trade Agreement (PTA), aiming to strengthen their economic ties, according to an official statement released on Sunday.
Mercosur, a Latin American trading bloc comprising Brazil, Argentina, Uruguay, and Paraguay, was at the centre of discussions during a meeting between Prime Minister Narendra Modi and Brazilian President Luiz Inacio Lula da Silva on the sidelines of the G20 Summit.
Both leaders expressed their satisfaction with the growing trade between India and Mercosur and committed to collaborating on the expansion of the India-Mercosur PTA during Brazil’s Mercosur Presidency.
"Expressing satisfaction over the growing trade between India and Mercosur, both leaders agreed to work together for the expansion of India-Mercosur PTA during Brazil’s Mercosur Presidency, to realise the full potential of this economic partnership," a joint statement issued after the meeting said.
Additionally, the two nations welcomed the establishment of the India-Brazil Business Forum as a dedicated platform for private-sector collaboration.
Furthermore, it was noted that the domestic procedures required for the India-Brazil Social Security Agreement to come into effect have been completed.
The India-Mercosur Preferential Trade Agreement (PTA) has been in effect since June 1, 2009. These agreements involve the reduction or elimination of customs duties on specific goods agreed upon by the participating countries. Expanding the agreement would entail increasing the number of goods covered and establishing negotiation norms to boost trade in services and investment.
Currently, the PTA encompasses a limited range of products, consisting of only 450 tariff lines.
India’s exports to Latin America reached $17.7 billion in the 2022-23 fiscal year, compared to $15 billion in the previous year. Imports also saw an increase, rising to $22 billion in the last fiscal year from $21.74 billion in 2021-22.
Bilateral trade between India and Brazil has experienced notable growth, reaching $16.6 billion in the 2022-23 fiscal year, up from $12.2 billion in 2021-22.