New Delhi [India], December 18 (ANI): Argentina’s Ambassador to India, Mariano Caucino, on Thursday revealed a growing consensus among some MERCOSUR members and India to expand the existing Preferential Trade Agreement (PTA) signed in 2004, acknowledging that the current pact is limited to a narrow range of products.
Speaking to ANI on India’s trade relations with Latin American countries, the Ambassador acknowledged the need for expanded trade coverage between New Delhi and the trading bloc and noted the higher import tariffs imposed by India.
“Argentina is a founding member of MERCOSUR. There is a Preferential Trade Agreement between India and MERCOSUR, signed in 2004, which came into effect in 2009. But it is limited to some products. There is consensus among some members of the bloc and I think on the Indian side, too, that the agreement should be expanded. We sometimes need a little help from the Indian side because you have very high import taxes,” Caucino said.
According to the Ministry of Commerce, a Framework Agreement was signed between India and MERCOSUR nations in 2003, aimed at creating conditions and mechanisms for negotiations in the first stage by granting reciprocal tariff preferences and in the second stage negotiating a free trade area between the two parties in conformity with the rules of the World Trade Organisation.
As a follow-up to the Framework Agreement, a PTA was signed in 2004 and entered into force in 2009 to expand and strengthen relations between MERCOSUR and India and promote trade by granting reciprocal fixed tariff preferences, with the ultimate objective of creating a free trade area between the parties.
Meanwhile, speaking about India-Argentina trade relations, Caucino said that Argentina is India’s sixth-largest trading partner, with bilateral trade valued at USD 5 billion.
He cited Indian investments in Argentina’s mining sector, including lithium projects, and highlighted potential opportunities to expand cooperation in energy and other sectors.
“Currently, India is Argentina’s sixth-largest trade partner. The trade relationship between the two countries is USD 5 billion, which for Argentina is an important figure. Currently, Argentina is (India’s) number one provider of soybean oil. We are number three in terms of sunflower oil. There are also some important mining investments from Indian companies in Argentina, for example, in lithium… There are many other possibilities for expanding this cooperation, for example, in energy and other fields,” the Ambassador said. (ANI)
