India and Mercosur Launch Talks to Expand Trade Agreement

The Government of India and the Mercosur trade bloc launched negotiations on September 14, 2026, to expand their 2009 Preferential Trade Agreement (PTA). Commerce Minister Piyush Goyal and Uruguay's Foreign Affairs Minister Mario Lubetkin announced the talks, which aim to upgrade the existing narrow PTA into a comprehensive free trade agreement covering goods, services, and investments. The two parties are currently finalizing the terms of reference to define the scope of the expanded pact.

As part of this modernization effort, the two sides signed the First Additional Protocol to the PTA in New Delhi. Signed by India's Commerce Secretary Rajesh Agarwal and the ambassadors of Uruguay and Paraguay, the protocol enables the acceptance of electronic Certificates of Origin. These electronic documents now hold the same legal validity as paper versions, a move intended to reduce transaction costs and processing times for importers seeking duty concessions.

The original 2009 agreement provides preferential tariff concessions on 450 lines by India and 452 lines by Mercosur. The current expansion seeks to address high tariffs and logistical constraints for Indian exporters in a region where bilateral trade reached $17.48 billion during 2024-25. The new protocol will enter into force following the completion of domestic ratification procedures by all parties.