India and Brazil issued a Joint Declaration to expand the India-MERCOSUR trade pact, aiming to enhance bilateral trade, investment, and economic partnership.

About MERCOSUR

• MERCOSUR (Southern Common Market) is a South American trading bloc modelled on the European Union to promote regional economic integration.
• Establishment: Created in 1991 by the Treaty of Asunción; institutionalized by the Protocol of Ouro Preto (1994).
• Combined GDP: Over USD 2.5 trillion
• Objective: 
  • To Promote free trade & movement of goods, services, capital and people among the four member countries.
  • To establish a common external tariff (CET) and a customs union.
• Partner Countries:
  • Full Members: Argentina, Brazil, Paraguay, Uruguay
  • Associate Members: Bolivia (awaiting full membership ratification), Chile, Colombia, Ecuador, Guyana, Peru, Suriname.
  • Observer Countries: Mexico and New Zealand
• Institutional Structure:
  • Council of the Common Market (CMC): Highest decision-making body composed of foreign and economy ministers.
  • Common Market Group (CMG): Executive body responsible for implementing decisions.
  • MERCOSUR Trade Commission (CCM): Oversees trade policy and customs issues.
• Significance:
  • MERCOSUR is the fourth largest integrated market after the EU, NAFTA, and ASEAN.
  • Provides preferential trade benefits through agreements with countries like India, expanding market access for goods and services.

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About India–MERCOSUR Preferential Trade Agreement (PTA)

• India–MERCOSUR Preferential Trade Agreement (PTA) signed in 2004, operational since 2009.
• Covers about 450–450+ tariff lines with concessions from both sides.
• Major traded items:
  • India’s exports: Pharmaceuticals, chemicals, machinery, textiles.
  • India’s Imports: Edible oils, leather, iron ore, and minerals.

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