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FRAMEWORK TRADE AGREEMENT WITH MERCOSUR
FTA WITH MERCOSUR TO FACILITATE QUANTUM LEAP IN EXPORTS TO LATIN AMERICA
Date : 06 Jun 2003
Location : New Delhi
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.
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SB/PM/MRS
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