India & Brazil to Expand Trade Agreement with MERCOSUR

• 17 Oct 2025

On 16th October 2025, India and Brazil agreed to significantly expand the existing Preferential Trade Agreement (PTA) between India and the MERCOSUR bloc to boost bilateral trade and investment.

• The Southern Common Market (MERCOSUR for its Spanish initials) is a regional integration process, initially established by Argentina, Brazil, Paraguay and Uruguay, and subsequently joined by Venezuela and Bolivia.

Key Points

• Background: The expansion builds upon the original Framework Agreement signed on 17 June 2003 to strengthen economic cooperation between India and MERCOSUR.
• Expanded Scope: Both sides agreed the upgraded pact will provide broader tariff preferences and address non-tariff barriers to trade.
• Private Sector Engagement: The governments will actively consult private sector stakeholders to ensure inclusive and practical negotiation outcomes.
• Technical Dialogue: A technical dialogue will soon begin, including an early meeting of the Joint Administration Committee (under Article 23 of the PTA) to define the framework of expansion.
• Timeline: Both sides aim to conclude negotiations within one year of their formal launch.
• MERCOSUR Coordination: Brazil assured close coordination with other MERCOSUR members to ensure the process remains swift, substantial, and mutually beneficial.