India, MERCOSUR clear way for PTA

India, MERCOSUR clear way for PTA

India and the MERCOSUR countries (Argentina, Brazil, Paraguay, Uruguay, Bolivia and Chile) signed an agreement to enact a Preferential Trade Agreement (PTA) between the two parties in order to expand and strengthen the existing relations between MERCOSUR and India. The countries will promote bilateral trade by granting reciprocal fixed tariff preferences. The countries hope to eventually establish a free trade area. The agreement covers 450 products on which India gives tariff preferences and 452 products on which MERCOSUR gives tariff preferences. The tariff preferences provide 10 to 100% concessions in bilateral trade. Furthermore, the agreement will allow for the facilitation of safeguard measures and dispute settlement procedures. India's major exports to MERCOSUR are chemicals, transport equipment, textile and coal tar. The country imports metal ferrous ores, metal scrap and non-electrical machinery from MERCOSUR members.