PM Modi and Brazilian President Lula Da Silva (File Photo)
India and Brazil are now preparing to come together. According to media reports, government sources have indicated that India may hold a virtual meeting with Mercosur trading block next week. The free trade agreement (FTA) will be discussed in this meeting. India already has a preferred trade agreement (PTA) with Mercosur. Mercosur is a regional trade organization in South American countries led by Brazil, with the rest of which is Argentina, Uruguay and Paraguay.
According to the report, India is looking for many new export markets, so that the impact of the economic lethargy of developed countries and the recently imposed tariffs by the US can be reduced. This year Prime Minister Narendra Modi met the presidents of Brazil, Argentina and Paraguay. Apart from this, the Vice President of Brazil is also coming to India next month. Let us know that America has imposed the highest 50 percent tariff on India and Brazil.
This country in search of new business partners
If sources are to be believed, the Latin American countries are looking for new business partners and consider India as a big market. India also considers opening a market for these countries as relatively safe, as the range and quantity of their products is limited, due to which the chances of damage to India’s domestic industries are less. All options to increase business are open, from existing PTA to increase 450 product lines to 4,000 or to do a broad FTA, which would have conditions such as the movement of skilled professionals and the rules of origin, so that dumping or transport from third countries can be prevented.
The economy is 2.94 trillion dollars
Mercosur countries have more than 67% stake in South America’s total economy. The total economy of South American countries is $ 4.38 trillion, with Mercosur member countries’ economy $ 2.94 trillion. Sources also said that discussion is going on to convert PTA into FTA within Mercosur block. A comprehensive FTA will get Indian exporters access to large markets in Mercosur countries. Apart from this, it will also give India an opportunity to enter new markets in Caribbean and Pacific regions, where Mercosur countries are often used as a trans-appearance hub.