India and MERCOSUR Launch Negotiations to Expand Trade Pact and Adopt Electronic Origin Certificates
India and MERCOSUR, the South American trade bloc comprising Brazil, Argentina, Uruguay, Paraguay, and Bolivia, have formally launched negotiations to expand their existing Preferential Trade Agreement (PTA) and signed a landmark protocol to enable paperless trade. Union Minister of Commerce and Industry Piyush Goyal and Uruguay's Minister of Foreign Affairs Mario Lubetkin announced the initiative during high-level trade discussions in New Delhi.
The existing PTA, operational since 2009, covers tariff concessions on only about 450 product categories on each side. Bilateral trade between India and the MERCOSUR grouping reached $21 billion in 2025, prompting both sides to finalize terms of reference to significantly broaden the scope and product coverage of the trade deal.
In addition to launching expansion talks, India and MERCOSUR signed the First Additional Protocol to amend the PTA's rules of origin. Under this agreement, electronic Certificates of Origin (e-CoOs) will hold equal legal validity to traditional paper-based documents. The transition to digital certificates is expected to lower transaction costs, reduce processing times, and streamline customs clearance procedures for exporters and importers across both regions.
The expansion strategy reflects India's broader efforts to diversify its export markets and build resilient global supply chains amid economic headwinds. Broader market access in South America offers expanded opportunities for Indian exporters in key sectors, including pharmaceuticals, machinery, automotive components, chemical products, and agriculture.
