India and the South American trade bloc Mercosur have initiated negotiations to expand their existing trade agreement, the commerce ministry announced on Monday. The current pact, effective since June 2009, provides India with duty concessions on 450 tariff lines, while Mercosur offers concessions on 452 tariff lines, according to livemint.com.
The talks aim to broaden the scope of the trade deal as India seeks to diversify its export markets and strengthen economic ties amid global economic challenges. The commerce ministry highlighted that expanding the agreement would enhance bilateral trade and cooperation between India and Mercosur member countries, which include Argentina, Brazil, Paraguay, and Uruguay.
This move comes at a time when India is actively pursuing new trade partnerships to mitigate risks from global economic volatility. The existing agreement has facilitated tariff concessions that benefit both sides, and expanding it could increase market access and trade volumes. The Mercosur bloc is a significant trading partner for India in South America, making the negotiations strategically important.
The current trade agreement has been operational since June 2009, with tariff concessions on over 450 lines for both India and Mercosur. The ongoing negotiations mark a key step in enhancing trade relations between India and the South American bloc, as confirmed by the commerce ministry statement reported by livemint.com.