New Delhi: Vice President of Brazil Geraldo Alckmin and Minister of Commerce and Industry Piyush Goyal, throughout
India and Brazil on Thursday (October 16, 2025 )consented to broaden the scope of the existing preferential trade pact in between New Delhi and 4 South American country bloc Mercosur to enhance financial ties.
Mercosur is a trading bloc in Latin America, making up Brazil, Argentina, Uruguay and Paraguay.
The concern was talked about throughout a conference in between the going to Brazilian Vice President Geraldo Alckmin and Commerce and Industry Minister Piyush Goyal.
According to the Commerce Ministry declaration, they consented to establish a technical discussion in between India and Mercosur, consisting of holding a conference of the Joint Administration Committee developed under an arrangement of the Preferential Trade Agreement(PTA)at the earliest equally hassle-free date, with a view to specifying the scope of the growth.
They concurred that “parties should endeavour to conclude the negotiations within one year from the launch of negotiations”the declaration stated.
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The India-Mercosur Preferential Trade Agreement (PTA) entered impact on June 1, 2009. This PTA has actually restricted protection and consists of just 450 tariff lines or items. Both sides are taking a look at broadening the scope of this pact to a full-fledged arrangement.
The 2 sides likewise concurred that “the expansion of the agreement should be substantial, aiming for a significant share of bilateral trade to benefit from tariff preferences; and the expansion should cover both tariff and non-tariff issues related to trade and economic partnership”it included.
The active involvement of the economic sector and other stakeholders to support the settlement procedure ought to be promoted, it stated.
The Brazilian side suggested that it will operate in a collaborated way with its Mercosur partners towards a considerable, speedy, and equally advantageous deepening of the arrangement.
Brazil is the biggest trading partner of India in the Latin American and Caribbean area. Throughout 2024-25, the bilateral product trade stood at $12.19 billion. There is a target to increase it to $20 billion over the next 5 years.
Talking to press reporters previously in the day, Mr. Goyal stated he has actually talked about with Brazil to broaden the Preferential Trade Agreement from its existing level so that “we can” in the future permeate the South American market in a larger method.
Speaking at an occasion, Mr. Alckmin revealed self-confidence that the $20 billion trade target will be attained.
It was $12 billion in 2024.
Mr. Alckmin likewise stated that the Double Taxation Avoidance Agreement with India will assist develop a foreseeable and more secure service environment.
“We are ready to launch a digital partnership towards artificial intelligence high performance computing,” Mr. Alckmin included.
Released – October 17, 2025 12:21 pm IST