To boost trade with Mercosur,India plans to put more items on PTA basket

India is working on upgrading agreement on tariffs with Mercosur,or Argentina,Brazil,Paraguay and Uruguay.

India is working on upgrading agreement on tariffs with Mercosur,or Argentina,Brazil,Paraguay and Uruguay. This could translate in more items of trade being included in the Preferential Trade Agreement (PTA) or move to free trade agreement with the LATAM countries.

We are thinking of upgrading the coverage of items under PTA with Mercosur,which will help in increasing trade … we will expand it and make it more comprehensive to create an economic linkage, commerce and industry minister Anand Sharma said here.

Teams from both sides of the countries have been meeting to develop a list of products to be included in the agreement,MoS for commerce and industry Jyotirditya Scindia had earlier said. He had mentioned that trade volume between Mercosur and India should reach $17 billion in 2012 and $30 billion by 2030.

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The PTA agreement between India and Mercosur came into force in 2009 to create a free trade area. The agreement presently covers import and export of 452 products,which will eventually increase with special taxation.

India is also negotiating a similar pact with South Africa Customs Union (SACU),whose members include Botswana,Lesotho,Namibia,South Africa and Swaziland,Sharma said. Duties on some products have already been reduced under the agreement with Mercosur.

Sharma,leading a business delegation to Bangladesh,also met the countrys Prime Minister Sheikh Hasina today. The commerce minister said that serious efforts are needed to restore railway lines that have not been used after the 1965 war. India also offered buyers credit for Indian projects in Bangladesh which will enhance competitiveness of Indian investors. Sharma also held discussions with ministers of finance,commerce,foreign,food and disaster management of the country.