India-Mercosur Preferential Trade Agreement (PTA) Expansion
India is pushing for the expansion of its Preferential Trade Agreement (PTA) with the Mercosur nations during the prime minister's visit to Latin American countries, specifically Brazil and Argentina.
About Mercosur
- Mercosur is a Latin American trading bloc consisting of Argentina, Brazil, Uruguay, and Paraguay.
- It ranks as the fourth-largest integrated market globally, following the European Union (EU), NAFTA, and ASEAN.
Prime Minister's Tour
- The Prime Minister's visit spans five nations from July 2 to 9, including Ghana, Trinidad and Tobago, Argentina, Brazil, and Namibia.
- In Brazil, the prime minister will attend the BRICS Summit and conduct bilateral talks with the presidents of Brazil and Argentina.
Objective of the Visit
- India aims to expand the PTA with Mercosur, a proposal that has faced hurdles in reaching a consensus within the bloc.
India-Mercosur PTA Details
- The PTA, signed in January 2004 and effective from June 2009, involves tariff concessions from both sides.
- India provided concessions on 450 tariff lines, whereas Mercosur included 452 tariff lines.
- The PTA focuses on eliminating tariffs for a limited set of goods, being less comprehensive than a Free Trade Agreement.
Trade Statistics and Covered Products
- For the financial year 2024-25, India’s exports to Mercosur were $8.12 billion, with imports at $9.36 billion, primarily from Brazil.
- India’s offer list includes products like meat, chemicals, hides, leather, wool, and cotton yarn.
- Mercosur’s covered products are food preparations, chemicals, pharmaceuticals, oils, plastics, rubber, machinery, and electrical equipment.