India-Mercosur PTA
MERCOSUR is a trading bloc in Latin America comprising Brazil, Argentina, Uruguay and Paraguay. MERCOSUR was formed in 1991 with the objective of facilitating the free movement of goods, services, capital and people among the four-member countries.
1. Framework Agreement between India and Mercosur (a trade bloc of Argentina,Brazil, Paraguay & Uruguay)
Framework Agreement was signed between India and Mercosur at Asuncion, Paraguay on 17 th June, 2003.
The aim of this Framework Agreement was to create conditions and mechanisms for negotiations in the first stage, by granting reciprocal tariff preferences and in the second stage, to negotiate a free trade area between the two parties in conformity with the rules of the World Trade Organization.
2. India Mercosur Preferential Trade Agreement
As a follow up to the Framework Agreement, a Preferential Trade Agreement (PTA) was signed in New Delhi on January 25, 2004 and came into effect from 1 st June, 2009. The PTA consists of
five Annexes:
i) Annex I (MERCOSUR’s Offer List to India)
ii) Annex II(India’s Offer List to MERCOSUR)
iii) Annex III (Rules of Origin)
iv) Annex IV (Safeguard Measures)
v) Annex V(Dispute Settlement Procedure)
The aim of this Preferential Trade Agreement is to expand and strengthen the existing relations between MERCOSUR and India and promote the expansion of trade by granting reciprocal fixed tariff preferences with the ultimate objective of creating a free trade area between the parties.