FRAMEWORK TRADE AGREEMENT WITH MERCOSUR
FTA
WITH MERCOSUR TO FACILITATE QUANTUM LEAP IN EXPORTS TO LATIN AMERICA
A Framework Trade
Agreement to be signed later this month between India and MERCOSUR
(a regional grouping consisting of Argentina, Brazil, Uruguay
and Paraguay) will pave the way to negotiate a Preferential Trading
Arrangement and a Free Trade Agreement (PTA/FTA) with MERCOSUR.
PTA with MERCOSUR is likely to be concluded by the end of August
2003. With the signing of PTA both the sides will get mutual tariff
concessions in case of imports from either side. This Agreement
is expected to facilitate a quantum leap in bilateral trade between
India and Mercosur in particular and Latin American region in
general.
The Indo-MERCOSUR
trade for the last three years is as under:
(Figures in US$
Million)
|
YEAR
|
EXPORTS
|
IMPORTS
|
|
1999-2000
|
317.60
|
732.85
|
|
2000-2001
|
476.52
|
603.11
|
|
2001-2002
|
626.49
|
765.74
|
It will be seen that
India’s exports to MERCOSUR region have doubled since 1999-2000.
MERCOSUR is a Southern
Core Common Market in Latin America. An integration of the economies
of the four countries of Argentina, Brazil, Uruguay and Paraguay,
it was set up in 1991. In MERCOSUR, intra-regional trade is being
gradually liberalised. Tariff on 90% of intra-regional trade has
been removed, with Common External Tariff (CET) ranging from 0-20%.
Chile and Bolivia are associate members of MERCOSUR.
At present, India’s
share is just 0.83% of the global imports of MERCOSUR.
The Framework Agreement
between India and MERCOSUR will be signed during the visit of
the Minister of State for Commerce & Industry, Shri Vidya
Sagar Rao, to Paraguay (Asuncion) on 17th-18th
June 2003.
