July 2, 2025
The Mercosur bloc, comprising Brazil, Argentina, Uruguay and Paraguay, is the world’s fourth-largest trade group after the EU, NAFTA and ASEAN
Modi’s five-nation tour from July 2 to 9 includes stops in Ghana, Trinidad and Tobago, Argentina, Brazil and Namibia
India signed a PTA with Mercosur in 2004, which came into effect in 2009, offering mutual tariff concessions on over 450 product lines
India’s key exports to the bloc include leather, chemicals and cotton yarn, while Mercosur’s include pharmaceuticals, machinery and essential oils
India will press for an expansion of its preferential trade agreement (PTA) with the Mercosur bloc during Prime Minister Narendra Modi’s visit to Brazil and Argentina.
Mercosur, a Latin American trade bloc comprising Brazil, Argentina, Uruguay, and Paraguay, is the fourth-largest integrated market globally, after the European Union, NAFTA, and ASEAN. India has had a PTA with Mercosur since 2004, which came into effect in June 2009.
The Prime Minister is currently on a five-nation tour from July 2 to 9, covering Ghana, Trinidad and Tobago, Argentina, Brazil and Namibia. During his visit to Brazil, Modi will attend the BRICS Summit and hold bilateral discussions with Brazilian President Luiz Inácio Lula da Silva. He is also expected to meet Argentina’s President Javier Milei. Both meetings will include discussions on expanding the scope of the India-Mercosur PTA.
According to a senior government official, India has consistently advocated for a broader PTA with Mercosur, but internal differences within the bloc have hindered progress. The issue is expected to be revisited during the Prime Minister’s engagements in Argentina and Brazil.
Under the existing agreement, India granted tariff concessions on 450 products, while Mercosur provided similar concessions on 452 items. The PTA offers limited tariff reductions and is less extensive than a full free trade agreement.
India’s major exports under the PTA include meat, chemicals, leather goods, wool and cotton yarn. In contrast, Mercosur countries primarily export food preparations, pharmaceuticals, essential oils, plastics, machinery and electrical equipment to India.
In the financial year 2024–25, India exported goods worth $8.12 billion to Mercosur nations and imported $9.36 billion, with Brazil accounting for the majority of bilateral trade.
Source: Business Standard