India and Brazil Discuss Deepening of India–MERCOSUR Preferential Trade Agreement

During a meeting held in New Delhi on October 16, 2025, the Vice President of Brazil and India’s Minister of Commerce and Industry welcomed the mutual interest of India and MERCOSUR Member States in deepening their existing Preferential Trade Agreement (PTA). The move aims to further promote trade and investment between the two sides.

Background: Framework and PTA Agreements
The Framework Agreement between India and MERCOSUR was signed on June 17, 2003, to strengthen economic relations and promote the expansion of trade in line with WTO rules and disciplines.
As a follow-up, a Preferential Trade Agreement (PTA) was signed in New Delhi on January 25, 2004. The PTA seeks to expand and strengthen trade relations between the parties by granting reciprocal fixed tariff preferences, with the ultimate goal of establishing a Free Trade Area (FTA).

About MERCOSUR
MERCOSUR (Southern Common Market) is a Latin American trading bloc comprising Brazil, Argentina, Uruguay, and Paraguay as its founding members. Venezuela (currently suspended) and Bolivia later joined the bloc.
Established in 1991, MERCOSUR’s primary objective is to facilitate the free movement of goods, services, capital, and people among its member countries.

Global Significance
MERCOSUR represents the third largest integrated market in the world, after the European Union (EU) and the North American Free Trade Agreement (NAFTA). Strengthening India–MERCOSUR trade ties is expected to boost South–South cooperation and open up new economic opportunities across key sectors such as agriculture, manufacturing, and services.