India and the South American trade bloc MERCOSUR have launched negotiations to expand their existing Preferential Trade Agreement, in a move aimed at deepening economic relations and creating greater opportunities for businesses on both sides.
Union Commerce and Industry Minister Piyush Goyal and Uruguay’s Foreign Minister Mario Lubetkin, representing the country’s Pro Tempore Presidency of MERCOSUR, jointly announced the launch of the negotiations.
The two sides agreed to expand the existing agreement to cover additional areas of mutual interest, with the objective of strengthening bilateral and bloc-level economic engagement and generating greater benefits for the private sector.
India and MERCOSUR are currently finalising the Terms of Reference (ToR), which will define the scope and structure of the proposed expanded agreement.
The move is expected to provide a framework for broader trade and economic cooperation between India and the MERCOSUR bloc, comprising Argentina, Brazil, Paraguay, Uruguay and Bolivia.
The existing India-MERCOSUR Preferential Trade Agreement provides preferential access for select products traded between the two sides. The proposed expansion seeks to build on this framework and further strengthen commercial ties.
The launch of negotiations comes as India continues to expand its trade and economic engagement with countries and regional groupings across Latin America, with a focus on opening new markets and creating opportunities for Indian businesses.
