India and Brazil have agreed to broaden the existing preferential trade agreement (PTA) between New Delhi and the Mercosur bloc to strengthen economic ties and boost bilateral trade. Mercosur includes Brazil, Argentina, Uruguay, and Paraguay.
Talks Between Leaders
The discussions took place during a meeting in New Delhi between Brazilian Vice President Geraldo Alckmin and India’s Commerce and Industry Minister Piyush Goyal. Both sides agreed to set up a technical dialogue, including convening the Joint Administration Committee under the PTA, to define the scope of the expansion at the earliest mutually convenient date. The commerce ministry noted that the aim is to conclude negotiations within one year from the launch.
From Limited PTA to Comprehensive Trade Deal
The India-Mercosur PTA, in effect since June 1, 2009, currently covers only 450 tariff lines. India and Brazil now aim to transform it into a full-fledged agreement covering a substantial share of bilateral trade, including both tariff and non-tariff measures. The ministry emphasized that active participation from the private sector and other stakeholders will support the negotiation process.
Bilateral Trade and Future Targets
Brazil is India’s largest trading partner in Latin America, with bilateral merchandise trade totaling USD 12.19 billion in 2024-25. The two countries aim to reach USD 20 billion over the next five years. Commerce Minister Piyush Goyal said that expanding the PTA will help India access the South American market more effectively.
Cooperation Beyond Trade
Vice President Alckmin expressed confidence in achieving the USD 20 billion target and highlighted the importance of the Double Taxation Avoidance Agreement in creating a predictable business environment. He also announced plans to launch a digital partnership focusing on artificial intelligence and high-performance computing.
