Brazil and India Expand Preferential Trade Agreement to Boost Bilateral Commerce
Brazil and India are expanding their Mercosur-India Preferential Trade Agreement to broaden tariff reductions and increase trade to $20 billion by 2026, with energy and business partnerships advancing concurrently.
- • Mercosur-India trade agreement to be expanded covering more products and deeper tariff cuts.
- • Goal to increase bilateral trade volume to $20 billion by 2026.
- • Petrobras signed supply contract to provide 6 million additional barrels of oil to India.
- • Brazil announced electronic business visa issuance for Indian citizens to boost partnerships.
Key details
Vice President Geraldo Alckmin is in New Delhi to finalize the expansion of the Mercosur-India Preferential Trade Agreement, aiming to significantly enhance bilateral trade by 2026. Currently, the agreement includes tariff reductions on about 450 product categories out of nearly 9,000, with modest cuts between 10% and 20%. The goal is to broaden this scope to increase trade volume to $20 billion by 2026, moving beyond the limited coverage of the existing deal.
Discussions involved representatives from around 20 companies spanning diverse sectors such as food, beverages, agribusiness, construction, technology, chemicals, health, machinery, energy, and fashion. Ana Repezza, director of business at Apex Brasil, highlighted that many business proposals focused on tariff reductions to facilitate access to the Indian market.
In addition, Petrobras signed a contract to supply an additional 6 million barrels of oil to India, complementing plans to launch 18 offshore oil exploration blocks in Brazil, signaling deeper economic cooperation in energy.
Alckmin also met with Indian Vice President Chandrapuram Ponnusami Radhakrishnan and announced Brazil’s issuance of an electronic business visa for Indian citizens to strengthen partnerships, especially in health and related industries. These measures reflect Brazil’s broader strategy to deepen and expand tariff lines, supporting economic diplomacy and stronger bilateral relations.