India and Brazil on Sunday agreed to work together for the expansion of India-Mercosur preferential trade agreement (PTA) to further promote economic ties, an official statement said. Mercosur is a trading bloc in Latin America, comprising Brazil, Argentina, Uruguay and Paraguay.
The issue came up for discussion during the meeting of Prime Minister Narendra Modi and Brazilian President Luiz Inacio Lula da Silva here at the sidelines of the G20 Summit.
"Expressing satisfaction over the growing trade between India and Mercosur, both leaders agreed to work together for the expansion of India-Mercosur PTA during Brazil's Mercosur Presidency, to leverage the full potential of this economic partnership," a joint statement issued after the meeting said.
The two countries also welcomed the establishment of the India-Brazil Business Forum as a dedicated platform for private-sector collaboration.
"The leaders noted with satisfaction the conclusion of domestic procedures for the entry into force of the India-Brazil Social Security Agreement," it added.
India-Mercosur preferential trade agreement (PTA) came into effect on June 1, 2009.
In such agreements, two countries reduce or eliminate customs duties on a limited number of goods agreed between them. Expansion of the agreement would include more numbers of goods and negotiating norms to promote trade in services and boost investment.
This PTA has limited coverage and contains only 450 tariff lines or products.
India's exports to Latin America have increased to USD 17.7 billion in 2022-23 compared to USD 15 billion in 2021-22. Imports, on the other hand, rose to USD 22 billion in the last fiscal against USD 21.74 billion in 2021-22.
The bilateral trade between India and Brazil has increased to USD 16.6 billion in 2022-23 from USD 12.2 billion in 2021-22.
Source Name : Economic times