India and Brazil to Expand Trade Pact under Mercosur Bloc

On 16th October 2025, India and Brazil agreed to expand the scope of their existing Preferential Trade Agreement (PTA) under the Mercosur bloc.

The move aims to strengthen economic cooperation and expand trade relations between India and Latin American markets.

WHAT IS MERCOSUR?

Aspect	Details
Full Form	Mercosur stands for Southern Common Market.
Member Countries	Brazil, Argentina, Uruguay, and Paraguay.
Objective	Formed to promote free trade and the movement of goods, people, and currency among member nations.

WHAT IS THE INDIA-MERCOSUR PTA?

Aspect	Details
Enforcement Date	The India-Mercosur Preferential Trade Agreement came into effect on 1st June 2009.
Coverage	Currently covers only 450 tariff lines, covering selected products eligible for lower duties.
Main Benefit	Offers tariff concessions on selected goods traded between India and Mercosur countries.

PT Facts

Brazil: India’s largest trading partner in Latin America.
PTA: More limited than a full FTA because it covers only selected tariff lines.
Latin America Access: Expansion of the PTA can improve India’s access to regional markets.
Trade Diversification: India is expanding economic engagement beyond traditional markets.

Source:

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