What happened
On October 16, 2025, India and Brazil on Thursday agreed to significantly expand their existing trade agreement with the MERCOSUR bloc, aiming to enhance bilateral trade and investment. The understanding was reached during a meeting in New Delhi between Commerce and Industry Minister Piyush Goyal and Vice President of Brazil and Minister of Development, Industry, Trade and Services Geraldo Alckmin. Both leaders welcomed the mutual interest of India and MERCOSUR member states in deepening the existing Preferential Trade Agreement (PTA). Recalling the original Framework Agreement signed on June 17, 2003, they agreed to take concrete steps to broaden the agreement’s scope.
Why it matters to India
The new roadmap outlines that the expansion should be substantial, ensuring a significant share of bilateral trade benefits from tariff preferences, and address both tariff and non-tariff issues, including broader economic partnership areas. Active engagement with private sector stakeholders will support negotiations, while a technical dialogue and an early meeting of the Joint Administration Committee under Article 23 of the PTA will define the scope of expansion. Both parties aim to conclude negotiations within one year of their formal launch. Brazil also assured close coordination with its MERCOSUR partners to ensure that the deepening of the trade agreement is swift, substantial, and mutually beneficial, reinforcing India’s strategic and economic ties with Latin America.