India and MERCOSUR plan wider trade pact, paperless customs protocol
India and the South American MERCOSUR bloc will negotiate an expanded preferential trade agreement and implement digital trade documentation. The move could reduce customs friction and broaden preferential access for consumer-goods supply chains; two-way trade reached $21 billion in 2025.
What happened
India-MERCOSUR Preferential Trade Agreement · India and MERCOSUR will negotiate an expanded trade pact and adopt paperless customs documentation, potentially
Key facts
- 450 product categories with Indian tariff concessions
- 452 tariff lines with MERCOSUR reductions
- $21 billion two-way trade in 2025
- PTA active since June 2009
- Fifth Joint Administrative Committee meeting on April 9
What changed
India and MERCOSUR will negotiate an expanded trade pact and adopt paperless customs documentation, potentially lowering transaction costs and improving preferential trade access for Indian importers, exporters and consumer-sector supply chains.
Why this matters
Indian retailers and importers could gain lower sourcing costs and faster inbound flows as expanded MERCOSUR preferences and paperless customs reduce trade friction.
What to watch
- Publication of negotiating scope, tariff-line coverage, exclusion lists and proposed phase-down schedules.
- Rules-of-origin thresholds and whether cumulation across MERCOSUR members is permitted.
- Launch date and legal acceptance of electronic certificates of origin, e-invoices and paperless customs filings.
- Customs clearance-time data at Indian and MERCOSUR ports after protocol implementation.
- Inclusion or exclusion of apparel, footwear, leather, food and beverage, cosmetics, furniture, packaging materials and consumer electronics components.