Expansion of the India–MERCOSUR Preferential Trade Agreement (PTA) is set to be a key focus during the visit of Uruguay’s Vice Minister of Foreign Affairs Valeria Csukasi to India next month, reflecting renewed momentum in New Delhi’s engagement with Latin America’s largest trading bloc, officials said.
The discussions come close on the heels of Brazilian President Luiz Inácio Lula da Silva’s recent visit to India, during which both sides reiterated their interest in deepening trade ties with MERCOSUR, which groups Brazil, Argentina, Uruguay and Paraguay. Officials on both sides see the PTA expansion as a practical step to translate political intent into higher trade volumes and improved market access.
India’s existing PTA with MERCOSUR has been operational since June 1, 2009. Under the current framework, India offers tariff concessions on 450 tariff lines, while MERCOSUR provides preferences on 452 lines. These concessions range from 10 per cent to 100 per cent and cover a limited basket of goods, a constraint that policymakers on both sides now believe has capped the agreement’s potential.
Bilateral trade between India and MERCOSUR countries has grown over the years but remains well below its perceived capacity, particularly given complementarities in sectors such as pharmaceuticals, engineering goods, chemicals, agricultural commodities and processed foods.
Officials said both sides are examining proposals to substantially expand the product coverage of the PTA, with discussions centred on increasing the number of tariff lines to between 1,500 and 2,000.
“We have a serious interest in expanding the range of products covered by the PTA,” said P. Kumaran, Secretary (East) in the Ministry of External Affairs. “However, before moving forward, consensus must be built among all MERCOSUR members. India is engaging with each partner to align on the terms of reference and the sequencing of the expansion.”
Paraguay, which currently holds the pro-tempore presidency of MERCOSUR after assuming the role at the bloc’s 67th summit in Foz do Iguaçu last December, is expected to play a key role in building internal consensus. The South American grouping is simultaneously navigating multiple external engagements, including the recently concluded European Union–MERCOSUR partnership agreement, signed earlier this year during a visit by European Commission President Ursula von der Leyen and European Council President António Costa to Paraguay.
Indian officials see this broader global interest in MERCOSUR as an opportunity rather than a challenge. Commerce and Industry Minister Piyush Goyal has described MERCOSUR as a “highly important region” as India works towards its goal of scaling up trade with Latin America and the Caribbean to $100 billion. A deeper and more comprehensive PTA with MERCOSUR is viewed as a critical pillar of that strategy.
Uruguay’s Vice Minister Csukasi, who assumed office in March 2025, brings significant trade negotiation experience to the talks. She previously served as Uruguay’s Ambassador to Malaysia with concurrent accreditation to Thailand, Cambodia and Brunei, and was also the chief negotiator for her country in the MERCOSUR–European Union trade agreement.
Her meetings in New Delhi are expected to cover not only the scope and sequencing of PTA expansion but also the possibility of technical-level negotiations aimed at easing non-tariff barriers and improving regulatory cooperation.
Officials said while the PTA expansion is likely to be incremental rather than immediate, the upcoming visit is expected to provide political direction and clarity on the next steps, signalling a shared intent to elevate India–MERCOSUR trade relations to a more ambitious footing.
