India Eyes Bilateral Deals with Mercosur Amidst Slow PTA Progress

Commerce Minister Piyush Goyal suggested that India and Mercosur could explore bilateral free-trade agreements as efforts to expand the existing PTA haven't progressed. Highlighting significant developments with the LAC region—including Peru and Chile—and the UAE, Goyal emphasized the importance of swift trade negotiations, addressing non-market economy concerns.

Commerce Minister Piyush Goyal proposed on Wednesday the exploration of bilateral free-trade agreements between India and the Mercosur bloc, amidst stagnation in expanding the current Preferential Trade Agreement (PTA). Presenting the idea during a CII event, Goyal underlined the potential of bilateral agreements as a means to boost trade in the South American region.

Current negotiations to advance the existing PTA with the Mercosur countries, namely Argentina, Brazil, Paraguay, and Uruguay, have faced delays. Goyal accentuated India's proactive stance by mentioning developments in agreements with Chile and Peru, aiming to enhance trade relations within the Latin American and Caribbean (LAC) region.

The minister further cited successes with other bilateral deals, including a trade agreement with the UAE, which resulted in a doubling of trade within three years. Emphasizing the need for timely actions in trade negotiations, Goyal warned that prolonged FTA talks often hinder effective partnerships. He also raised concerns about the influence of non-market economies in LAC trade discussions, particularly highlighting potential indirect impacts from countries like China.

(With inputs from agencies.)