New Delhi: A media report stated that India is likely to hold a meeting with the MERCOSUR trading bloc via video conferencing. The meeting, reportedly scheduled for next week, will focus on setting up a Standard Operating Procedure (SOP) and a feasibility study for a potential Free Trade Agreement (FTA).
MERCOSUR comprises Uruguay, Brazil, Argentina, and Paraguay. India already has a Preferential Trade Agreement (PTA) with MERCOSUR since 2004.
CNBC-TV18 reported that in an attempt to tackle the challenges cropping up due to the imposition of US tariffs on Indian goods and also explore export destinations to make an effort to deal with the impact of a slowdown in several developed economies.
Earlier this year, Prime Minister Narendra Modi had met the Presidents of Brazil, Paraguay and Argentina.
The media house quoted sources saying that India is exploring expanding its trade business with Latin American countries as New Delhi is of the view that the risk factors are less due to a lesser product range and volumes, which won’t hit India’s domestic industry.
India is keeping all its options open for expanding its trade with the MERCOSUR bloc.
It may be noted that MERCOSUR bloc comprises more than 67% of the total economic share of South American economies. Collectively South American countries’ economies stand at around $4.38 trillion, of which the economies of the MERCOSUR member countries are worth $2.94 trillion.
Sources said that ‘internal discussions’ are underway with an agenda to expand PTA to FTA.
During his meeting with President of Brazil, H.E. Luiz Inácio Lula da Silva in July 2025, PM Modi discussed strengthening bilateral trade, including expansion of the India-MERCOSUR Preferential Trade Agreement.