Brazil and India seek to expand Mercosur trade pact

Brazil and India are working to expand the existing India-Mercosur preferential trade agreement to provide broader market access. Brazilian Minister of Development, Industry, Trade and Services Márcio Elias Rosa indicated that both nations have completed work on the terms of reference required to pave the way for negotiations on a more comprehensive arrangement.

The current preferential trade agreement, which has been operational since June 2009, covers only a limited number of products. The long-term objective of these discussions is to upgrade the existing framework into a full Free Trade Agreement (FTA) encompassing both goods and services. This move follows an announcement on September 14, 2026, regarding the start of negotiations to deepen economic ties between India and the Mercosur bloc, which includes Brazil, Argentina, Uruguay, Paraguay, and Bolivia.