India to seek expansion of Mercosur trade pact during PM’s Latin America visit

India aims to strengthen trade ties with Brazil and Argentina by pushing for broader tariff concessions under the Mercosur preferential trade agreement

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

Recent Articles

India-Vietnam trade should grow 30% to reach $20 billion, says Vietnamese envoy

July 8, 2025

Vietnamese Ambassador to India, Nguyen Thanh Hai, called for a …

Read More

Modi, Milei agree to deepen India-Argentina strategic ties

July 7, 2025

Prime Minister Narendra Modi and Argentine President Javier Milei agreed …

Read More

GCCs power India’s office leasing market in FY25 with record absorption

July 4, 2025

Global capability centres (GCCs) remained the dominant force in India’s …

Read More