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India is considering widening its trade agreement with MERCOSUR bloc comprising Brazil, Argentina, Uruguay and Paraguay with an aim to enhance economic engagement with these countries, a top official today said.
"India has signed a preferential trade agreement with MERCOSUR and we are currently looking at expanding this," Commerce Secretary S R Rao said here at a CII function.
India-MERCOSUR preferential trade agreement (PTA) came into effect from June 1, 2009. The major sectors covered in the offer list under the PTA include meat, chemicals, leather goods, iron and steel products, machinery items and electrical machinery.
Under its market diversification process, India is exploring ways to increase exports in Latin American region after its traditional partners - the US and EU - were impacted by the global economic slowdown.
The government is targeting African and Latin American countries to increase exports and is also providing certain fiscal sops to exporters to explore these markets.
Rao said that regional economic integration has increasingly becoming a new age instrument to enhance trade and investments.
"We are actively engaged with regional economic entities like MERCOSUR, one of the largest trading bloc with a combined GDP of over $2 trillion," he added.
He also called for joint collaboration to reduce barriers for trade like inadequate infrastructure, lack of access to technology, innovation and competitiveness.
He said that India can work in building shipping links with the Latin American countries.
