India, South American bloc MERCOSUR announce plan to expand trade pact

The pact, active since June 2009, presently grants India tariff concessions across 450 product categories, while MERCOSUR provides reductions on 452 lines. Two-way commerce between India and the grouping reached USD 21 billion in 2025.

Commerce and Industry Minister Piyush Goyal and Uruguay's Minister of Foreign Affairs Mario Lubetkin declared the commencement of the negotiations, according to a statement released by the Commerce Ministry.

Both parties are "in the process of finalising the terms of reference, which will define the scope and structure of the future expanded agreement," it added.

MERCOSUR comprises Brazil, Argentina, Bolivia, Uruguay, and Paraguay.

The measure arrives as India aims to broaden its shipment portfolio, while its robust growth outlook amid international uncertainty has encouraged countries and trading coalitions to strengthen economic cooperation with New Delhi.

Additionally, India and MERCOSUR executed a protocol on Monday designed to streamline paperless commerce and modernise customs procedures.

The move is expected to facilitate the transition towards digital and paperless trade documentation, reduce transaction costs and processing time associated with the issuance and verification of Certificates of Origin, and improve the efficiency of preferential trade under the existing India-MERCOSUR preferential trade agreement (PTA), the Commerce Ministry said.

The initiative stems from discussions within the Joint Administrative Committee of the India-MERCOSUR PTA.

During a session in November last year, both delegations backed updating the pact to permit digital certificates of origin, a proposal subsequently endorsed by mutual agreement during the fifth Joint Administrative Committee meeting on April 9. (ANI)