India-Mercosur Preferential Trade Agreement

The presidency of MERCOSUR takes place every six months between the Summit-marked Member States. Mercosur countries have agreed to use their own currencies for intra-Mercosur trade instead of using the U.S. dollar. A start was made between Argentina and Brazil. An EPA is a limited free trade agreement in which partner countries reduce import duties on a few products identified for other countries. While the PTA between India and Mercosur is currently limited to only 450 products, both parties have multiplied their ambitions and are now striving to obtain preferential access to some 3,000 products. (2) In this case, the competent authorities of the importing signatory party may refuse new imports of identical products from the same producer until it is clearly demonstrated that the manufacturing conditions have been modified to meet the original requirements of the rules of origin of these rules. India and the Mercosur bloc, which includes Brazil, Argentina, Uruguay and Paraguay, have stepped up efforts to expand their preferential trade agreement (EPA) to strengthen each other`s market. The expanded agreement must take into account the fact that, in most cases, the rules of origin of trade agreements no longer correspond to the reality of global value chains. And these value chains require rules that can simultaneously regulate trade in goods, services and investments. As part of the agreement signed in 2009, India reduced its tariffs by 10 to 100% on 452 posts. These include meat products, chemicals, raw skins and skins, leather goods, wool, cotton yarn, glass and glassware, iron and steel, machinery and appliances, optical, photographic and film cameras. 3.

MERCOSUR has become a thriving regional market with more than 290 million people with a GDP of more than two trillion dollars. It is the fourth largest integrated market after the EU, NAFTA and ASEAN. Its largest trading partner is the European Union. An important provision of the MERCOSUR charter, which is currently the subject of wide debate, is that Member States are prohibited from signing bilateral free trade agreements with third countries without the consensus of all members.