Mercosur India Agreement

As two major global players, India and the South American Mercosur bloc have been working towards a long-awaited free trade agreement. The Mercosur India agreement is expected to bring significant benefits to both regions, especially in terms of trade, investment, and economic growth.

Mercosur, made up of Argentina, Brazil, Paraguay, and Uruguay, is a leading trading bloc in South America. It accounts for more than 70% of the continent`s GDP and is home to over 290 million people. India, on the other hand, is one of the fastest-growing economies in the world, with a population of over 1.3 billion people and a GDP of $3.2 trillion.

The two regions have been engaged in trade talks since 2003, with negotiations stopping and starting several times due to several issues, most notably the protectionist policies of some Mercosur countries and India`s reluctance to open up its agriculture and dairy markets.

However, in March 2021, the two sides announced the resumption of negotiations and indicated significant progress towards a final agreement. The Mercosur India agreement is expected to cover various areas, including trade in goods and services, intellectual property rights, investment, and technical barriers to trade.

Once the agreement is formalized, it will remove trade barriers, reduce tariffs, and open up new markets. This move will not only boost trade between the two regions but also promote a closer relationship between India and the Mercosur bloc.

For instance, under the Mercosur India agreement, India will gain access to a market of over 290 million people, with a combined GDP of over $2.7 trillion. This move will undoubtedly be beneficial to India, which has been seeking to expand its exports to newer markets. Mercosur member countries, meanwhile, will have access to India`s diverse and rapidly growing market and will be able to export more goods at reduced tariffs, thereby increasing their competitiveness in the global market.

Also, investments between the two regions are expected to increase, with investors from both sides seeking new business opportunities. This move will not only boost economic growth but also create jobs and improve living standards for people in both regions.

In conclusion, the Mercosur India agreement is a significant milestone for both regions and is expected to provide them with several economic benefits. With negotiations expected to conclude soon, it`s only a matter of time before the agreement shows its enormous potential in boosting bilateral trade and investment.

You May Also Like