India and MERCOSUR launch talks to expand trade agreement

India and the MERCOSUR trade bloc have launched negotiations to expand their existing preferential trade agreement. The proposal seeks to increase the number of products covered by tariff preferences from approximately 450 per side to nearly 3,000.

Bilateral trade between India and the MERCOSUR grouping reached approximately US$21 billion in 2025. The expansion aims to diversify export markets and deepen commercial ties amid global economic volatility. Current benefits include textiles, pharmaceuticals, and appliances for India, while MERCOSUR receives preferences on agro-industrial, petrochemical, and mineral products.

In addition to the trade expansion talks, both parties executed a protocol to modernize customs procedures and facilitate paperless commerce. This initiative is intended to reduce transaction costs and processing times for Certificates of Origin through digital documentation.