India and MERCOSUR Launch Negotiations to Expand Preferential Trade Agreement, Eye Deeper Market Access and Trade Opportunities

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Dated: 17.09.2026

India and MERCOSUR Launch Negotiations to Expand Preferential Trade Agreement, Eye Deeper Market Access and Trade Opportunities

India and MERCOSUR have formally announced the launch of negotiations for expansion of the existing India–MERCOSUR Preferential Trade Agreement (PTA), signalling an effort to deepen economic engagement and create broader opportunities for businesses on both sides.

The announcement was made by Union Minister of Commerce and Industry Piyush Goyal and Uruguay’s Minister of Foreign Affairs Mario Lubetkin, with Uruguay exercising the Pro Tempore Presidency of MERCOSUR. The official release was issued by the Ministry of Commerce & Industry through the Press Information Bureau on September 14, 2026.

India–MERCOSUR PTA Set for Expansion

According to the government announcement, India and MERCOSUR have agreed to expand the existing Preferential Trade Agreement to cover areas of mutual interest.
The stated objective is to further deepen economic relations while generating greater benefits and opportunities for the respective private sectors of India and the MERCOSUR countries.
The development is significant because it represents the beginning of negotiations for an expanded agreement, rather than the conclusion of a new or expanded trade pact.

Terms of Reference Being Finalised

India and MERCOSUR are currently working to finalise the Terms of Reference (ToR) for the negotiations.
The Terms of Reference will determine the scope and structure of the future expanded agreement, making this an important preparatory stage before the substantive contours of the expanded PTA are settled.
Accordingly, the announcement should not be interpreted as meaning that additional tariff concessions or new preferential market-access commitments have already entered into force. The official release announces negotiations and does not identify new tariff lines, products, preferential duty rates, or implementation dates.

What Could an Expanded PTA Mean for Trade?

An expansion of the PTA could potentially broaden the commercial framework governing preferential trade between India and MERCOSUR. However, the precise sectors, tariff lines and other commitments will depend upon the negotiations and the final Terms of Reference.
For Indian exporters and importers, the negotiations will therefore be worth monitoring from the perspective of possible future changes in preferential tariff access, product coverage and bilateral trade opportunities.
Businesses should nevertheless distinguish between a negotiating announcement and an implemented preferential tariff concession. Until specific negotiated commitments are concluded and brought into effect through the applicable legal and customs framework, existing preferential treatment continues to be governed by the current India–MERCOSUR PTA framework.

What Is MERCOSUR?

MERCOSUR — the Southern Common Market — is a South American regional economic grouping. India’s trade relationship with the bloc is already governed in part through the India–MERCOSUR Preferential Trade Agreement.
The latest initiative is aimed at expanding that existing agreement, rather than creating the India–MERCOSUR trade relationship from scratch.
The announcement was made alongside Uruguay because the country was exercising MERCOSUR’s Pro Tempore Presidency at the time. The official release also includes a photograph of Piyush Goyal and Mario Lubetkin marking the engagement.

Key Development at a Glance

Particular	Details
Development	Launch of negotiations to expand India–MERCOSUR PTA
Announcement	September 14, 2026
India	Union Commerce & Industry Minister Piyush Goyal
MERCOSUR side	Mario Lubetkin, Foreign Minister of Uruguay
Uruguay’s role	Pro Tempore Presidency of MERCOSUR
Objective	Expand existing PTA into areas of mutual interest
Current stage	Negotiations launched
Terms of Reference	Under finalisation
New tariff concessions announced?	No specific concessions identified in the release
Expanded PTA currently in force?	No — negotiations have been launched

The government announcement therefore marks the start of a negotiating process, with the scope and structure of the expanded agreement still to be defined through the Terms of Reference.

Trade Compliance Perspective

For businesses engaged in India–MERCOSUR trade, the development is particularly relevant for future sourcing and export planning. Once the negotiations progress, companies may need to examine changes to product coverage and preferential treatment and, where applicable, the corresponding origin requirements and customs documentation.
At the present stage, however, businesses should not assume that the announcement itself creates any new preferential customs-duty entitlement. Importers claiming preferential treatment should continue to examine the applicable existing PTA provisions and the relevant customs requirements until any expanded agreement is formally concluded and implemented.

Key Takeaway

The launch of negotiations represents a move by India and MERCOSUR toward potentially broader preferential trade engagement.

Both sides have expressly agreed to explore areas of mutual interest with the objective of deepening economic relations and creating additional opportunities for their private sectors.

The next important development will be the finalisation of the Terms of Reference, which will establish the scope and structure of negotiations for the expanded PTA.

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Source: Ministry of Commerce & Industry

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