India and MERCOSUR Sign First Additional Protocol to Preferential Trade Agreement; Electronic Certificates of Origin to Facilitate Paperless Trade

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Dated: 16.09.2026

India and MERCOSUR Sign First Additional Protocol to Preferential Trade Agreement; Electronic Certificates of Origin to Facilitate Paperless Trade

India and the MERCOSUR bloc have signed the First Additional Protocol to the India–MERCOSUR Preferential Trade Agreement (PTA), marking an important step towards digitising preferential trade procedures and facilitating the acceptance of electronic Certificates of Origin (e-CoO).

The Protocol is intended to support paperless trade, reduce transaction costs and processing time, modernise customs procedures, and improve the efficiency of preferential trade between India and the MERCOSUR countries.

The development is particularly significant for exporters and importers claiming preferential tariff treatment under the India–MERCOSUR PTA, as Certificates of Origin form a critical part of demonstrating that goods satisfy the applicable origin requirements.

What Is the India–MERCOSUR Preferential Trade Agreement?

The India–MERCOSUR PTA was signed on 25 January 2004 and entered into force on 1 June 2009.
Under the existing agreement, India provides preferential tariff concessions on 450 tariff lines, while the MERCOSUR side provides concessions on 452 tariff lines.
MERCOSUR is the South American regional trade grouping involving Argentina, Brazil, Paraguay and Uruguay for purposes of the existing India–MERCOSUR preferential trade framework.
Unlike a comprehensive Free Trade Agreement covering substantially all trade, the existing PTA provides negotiated tariff preferences on specified tariff lines subject to compliance with its applicable Rules of Origin and other conditions.

First Additional Protocol: Major Shift Towards Electronic Certificates of Origin

The key change introduced through the First Additional Protocol concerns Article 18 of Annex III – Rules of Origin of the India–MERCOSUR PTA.
The amendment provides that Certificates of Origin issued in electronic format will have the same legal validity and identical value as Certificates of Origin issued in paper format.
The electronic Certificates of Origin are required to be issued and electronically signed in accordance with the respective domestic legislation of the parties by duly authorised entities and officials.
This is an important trade-facilitation development because preferential tariff claims have traditionally depended heavily upon documentary compliance with origin certification requirements.

Why Certificate of Origin Matters for Preferential Customs Duty

A Certificate of Origin establishes the origin status of goods for purposes of claiming the preferential tariff treatment available under a trade agreement.
For an importer seeking the benefit of a preferential customs duty rate under the India–MERCOSUR PTA, origin documentation is therefore not merely a commercial document. It forms an important part of the customs-compliance framework supporting the preferential claim.
By recognising an electronic Certificate of Origin as legally equivalent to its paper counterpart, the Additional Protocol provides the institutional basis for moving origin certification under the PTA towards a more digital framework.

Expected Benefits for Importers and Exporters

According to the Government release, the move is expected to facilitate the transition towards digital and paperless trade documentation, while reducing the transaction costs and processing time associated with the issuance and verification of Certificates of Origin.
It is also expected to improve the efficiency of preferential trade conducted under the existing India–MERCOSUR PTA.
For businesses, the practical benefits may include faster document transmission, reduced dependence on physical paperwork and improved efficiency in presenting origin documentation, subject to the operational systems and domestic procedures adopted by the respective parties.

How Was the Additional Protocol Finalised?

The initiative followed discussions within the Joint Administrative Committee (JAC) established under the India–MERCOSUR PTA.
At its fourth meeting held on 27 November 2025, both sides supported updating the Agreement to facilitate the use of digital Certificates of Origin.
The proposal for the Additional Protocol was subsequently adopted by mutual consent at the fifth meeting of the Joint Administrative Committee on 9 April 2026.
The development therefore forms part of an ongoing institutional process between India and MERCOSUR to modernise the administration of the preferential trading arrangement.

Protocol Signed by India and MERCOSUR Representatives

The Protocol was signed by Commerce Secretary, Government of India, Shri Rajesh Agrawal, along with representatives of the MERCOSUR side, in the presence of senior representatives of the participating countries.
The government release states that the signing underscores the commitment of India and MERCOSUR to deepen trade facilitation, adopt modern customs practices and strengthen the institutional framework supporting bilateral trade.
The photograph accompanying the government release on page 2 also records the signing ceremony, while the group photograph on page 3 shows officials and representatives participating in the engagement.

Important: Protocol Is Not Yet Automatically Operational

An important compliance point is that the signing of the Additional Protocol should not be confused with its immediate entry into force.
The government release expressly states that the Protocol will enter into force only after India and the MERCOSUR parties complete their respective internal procedures and notify each other accordingly.
Accordingly, businesses should not assume merely from the signing announcement that electronic Certificates of Origin can immediately replace existing documentary requirements in every preferential customs transaction.
The applicable operational date and procedures should be checked once the necessary internal formalities and notifications have been completed.

Compliance Impact for Customs and Trade Professionals

The Additional Protocol has particular relevance for exporters, importers, customs brokers and trade-compliance professionals dealing with preferential tariff claims under the India–MERCOSUR PTA.
Once operational, the recognition of e-CoOs can simplify one part of the origin-documentation process. However, electronic issuance does not dispense with the substantive requirement that goods must satisfy the applicable Rules of Origin under the PTA.
Importers claiming preferential duty in India must also remain mindful of the applicable Indian customs framework governing preferential tariff claims and origin verification. The Additional Protocol primarily modernises the form and legal recognition of the Certificate of Origin; it does not, based on the uploaded release, abolish the underlying origin requirements.

India–MERCOSUR Trade Engagement Moves Towards Modern Customs Procedures

The signing is significant beyond the replacement of paper certificates with electronic documentation. It reflects an effort by India and MERCOSUR to modernise the administrative architecture supporting their existing preferential trade relationship.
The Government has characterised the Protocol as strengthening trade facilitation, modern customs practices and the institutional framework supporting bilateral trade, while also representing a step in the continuing engagement between India and MERCOSUR to deepen and expand their trade and economic partnership.

Key Takeaway

The First Additional Protocol does not create a new India–MERCOSUR FTA or replace the existing PTA. Rather, it amends the existing preferential trade framework to give electronic Certificates of Origin the same legal validity as paper Certificates of Origin, once the Protocol enters into force following completion of the required internal procedures.

For the trade community, this represents a meaningful move towards digital origin certification and paperless preferential customs compliance, while the substantive Rules of Origin and conditions governing tariff preference continue to remain relevant.

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Source: Ministry of Commerce & Industry

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