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India and Mercosur announced on 14 September 2026 that they will begin negotiations to expand their existing Preferential Trade Agreement, with Terms of Reference being prepared to define the scope.
The same day they signed the First Additional Protocol to the PTA, giving electronic Certificates of Origin the same legal validity as paper ones.
The protocol amends Article 16 of Annex III of the PTA, which governs Rules of Origin, and was adopted by mutual consent at the fifth meeting of the Joint Administrative Committee on 9 April 2026.
The PTA was signed on 25 January 2004 and came into force on 1 June 2009; India offers concessions on 450 tariff lines and Mercosur on 452.
Bilateral trade was about US$21 billion in 2025, and the expansion is intended as a step towards a comprehensive Free Trade Agreement.
Signed 25 January 2004 and in force from 1 June 2009; grants reciprocal tariff concessions on a limited list of products rather than eliminating tariffs across the board.
Amends Article 16 of Annex III on Rules of Origin to give electronic Certificates of Origin the same legal validity as paper certificates, enabling paperless customs processing.
The founding treaty of Mercosur, signed by Argentina, Brazil, Paraguay and Uruguay, establishing a customs union and common market project in South America.
South American trade bloc functioning as a customs union with a common external tariff and a common market project; it negotiates external trade agreements as a bloc
The body that administers the PTA, reviews its working and adopts amendments such as the First Additional Protocol by mutual consent
| Type | What it covers | Example |
|---|---|---|
| Preferential Trade Agreement (PTA) | Tariff concessions on a selected list of products only; tariffs are reduced, not eliminated | India-Mercosur PTA, in force 2009 |
| Free Trade Agreement (FTA) | Tariffs removed on substantially all trade between members; each member keeps its own external tariff | India-ASEAN Trade in Goods Agreement |
| Comprehensive agreement (CECA / CEPA) | Goods plus services, investment and trade facilitation | India-UAE CEPA |
| Customs Union | Free trade within, plus a common external tariff towards non-members | Mercosur itself |
| Common Market | Customs union plus free movement of labour and capital | Mercosur's stated long-term goal |
GS Paper II > International Relations > India's trade agreements and regional groupings; GS Paper III > External sector
General Awareness > Current Affairs > International agreements and organisations
A trade document establishing where goods were produced; it decides whether a consignment qualifies for tariff concessions under an agreement.
The criteria that determine a product's economic nationality under a trade agreement, set out in Annex III of the India-Mercosur PTA.
The rotating chair of Mercosur, held by a member state for a fixed term; currently held by Uruguay.