India, Brazil agree to expand Preferential Trade Agreement

In a push to economic relations between the two countries, India and Brazil on Thursday agreed to expand the existing Preferential Trade Agreement (PTA) between India and MERCOSUR — the South American trade bloc comprising Brazil, Argentina, Paraguay, and Uruguay — during a high-level meeting in New Delhi.

The agreement was signed on June 17, 2003, with an aim to strengthen relations and promote the expansion of trade in conformity with the rules and disciplines of the WTO.

Brazil Vice-President and Minister of Development, Industry, Trade and Services Geraldo Alckmin; and Indian Commerce and Industry Minister Piyush Goyal expressed mutual enthusiasm over enhancing trade and investment ties.

The leaders outlined a forward-looking plan to significantly expand the PTA, focusing on increasing the share of bilateral trade covered by tariff preferences, addressing both tariff and non-tariff barriers to foster a robust economic partnership, promoting active participation from the private sector and other stakeholders, establishing a technical dialogue through the Joint Administration Committee under Article 23 of the PTA to define the expansion’s scope, and aiming to conclude negotiations within one year of their launch.

The next step in the initiative would be the establishment of a technical dialogue between the parties. Alckmin affirmed Brazil’s commitment to coordinate with MERCOSUR partners to ensure a swift and mutually beneficial agreement. Addressing the India-Brazil Business Dialogue, Goyal highlighted India’s strong economic growth and deepening bilateral partnership with Brazil.

Marking World Food Day, the minister highlighted the shared agricultural strengths of India and Brazil — two leading agri-producing nations that contribute significantly to global food security. Alckmin said India and Brazil shared a strong relationship and that bilateral trade between the two nations touched $12 billion in 2024.

“This year, exports from India to Brazil grew over 30 per cent, and exports from Brazil are also growing. We will overcome the foreign trade target of $20 billion by 2030. Both countries do not compete but complement each other. Brazil is opening its doors to Indian investment,” Alckmin said.