India Mercosur Free Trade Agreement


3. MERCOSUR has become a thriving regional market with more than 290 million people with a GDP of more than two trillion dollars. It is the fourth largest integrated market after the EU, NAFTA and ASEAN. Its largest trading partner is the European Union. An important provision of the MERCOSUR charter, which is currently the subject of wide debate, is that Member States are prohibited from signing bilateral free trade agreements with third countries without the consensus of all members. Both sides agreed on the need to significantly increase the number of customs lines in the current India-MERCOSUR EPZ, as this would help to cover a significant portion of bilateral trade. 4. Since its inception, it has negotiated only one free trade agreement, with Israel and closer trade relations with China seen as a quick solution to high tariffs and a non-competitive industry. Its members also played a key role in the failure of the U.S.

Free Trade Agreement (FTA), which was to unite Latin America and North America in a comprehensive trade agreement. a. are covered by a description of products eligible for concessions in the destination country under this agreement. (ii) are not intended for trade, consumption, use or employment in the transit country; Intra-Mercosur trade is duty-free, while imports from other countries are subject to a common external tariff (CET). Although the average CET is 14%, it could be between 0 and 20%. The CET has 800 exceptions, including cars and sugar. 2. MerCOSUR States and India take all necessary measures to ensure that products exchanged under the guise of a certificate of origin and using a special economic zone located on their territory during transport are not replaced by other goods and do not undergo activities other than normal activities to prevent their deterioration. 7. Negotiations on the Preferential Trade Agreement (EPA) were concluded in March 2005 and the agreement entered into force in June 2009. The India-MERCOSUR PTA provides for five important annexes or features: India and the Mercosur bloc, which includes Brazil, Argentina, Uruguay and Paraguay, have stepped up their efforts to expand their preferential trade agreement (ZEP) to clean up the market of the other. 5.

Its integration project includes the coordination of macroeconomic policies, the single currency, MERCOSUR BANK, common citizenship and cooperation in the development of infrastructure culture and education. MERCOSUR countries have an air services agreement that allows airlines from member states to freely serve international airports in the region. The region is linked to a growing network of cross-border roads, power grids, pipelines and other infrastructure connections. The presidency of MERCOSUR takes place every six months between the Summit-marked Member States. Mercosur countries have agreed to use their own currencies for intra-Mercosur trade instead of using the U.S. dollar. A start was made between Argentina and Brazil. 2. MERCOSUR was established in 1991 with the aim of free movement of goods, services, capital and people, and was established in January 1995 to become a customs union. It is now following the third stage of its “Common Market” integration. Countries such as Brazil, Argentina, Paraguay and Uruguay (MERCOSUR) have discussed with India the extension of customs lines to increase the volume of trade.


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