Trade with Brazil faces big barriers

Tariff and non-tariff barriers are impeding bilateral trade between India and Brazil, which stands at a paltry $1 billion.

"Tariff barriers are high in India while non-tariff barriers are high in Brazil. Efforts should be made to remove these irritants," Veena Jha, UNCTAD India programme co-ordinator, said today at a meeting of the Federation of Indian Chambers of Commerce and Industry (FICCI).

"Both visible and invisible trade barriers need to be restructured to promote bilateral trade. A study conducted recently revealed that tariff barriers are high," she said.

"Also, any bilateral agreement Brazil has with India must take into account the latter's trade obligation with other countries through separate agreements and vice versa," she said.

Jha said the complementarities between the two countries were so high that the volume of bilateral trade could shoot to $15 billion if both the nations capitalised on their strengths.

FICCI president YK Modi said the chamber had found that lack of information on market potential, policies and regulations of each other, trade restrictions, high transaction costs and inadequate transport links were some of the grey areas that the two sides needed to tackle.

"The end of the quota regime in the textile sector and implementation of Intellectual Property Rights regime will affect trade significantly. We have to synergise our competencies, both bilaterally and at multilateral levels," he said.