New Delhi: India and Brazil convened a Trade Monitoring Mechanism (TMM) meeting on Tuesday to address critical issues concerning bilateral trade, including visa facilitation and market access. The discussions also encompassed a review of investment relations and potential expansion of the India-Mercosur preferential trade agreement.
The India-Mercosur preferential trade agreement (PTA), which came into effect on June 1, 2009, was a key point of discussion. Currently, the PTA's coverage is limited to 450 tariff lines or products. Both sides are exploring the possibility of expanding this agreement to encompass a wider range of goods and services, potentially boosting trade between India and the Mercosur bloc, which includes Brazil, Argentina, Uruguay, and Paraguay.
In addition to the PTA, the TMM meeting addressed market access concerns, visa-related issues, and opportunities for sectoral collaboration. Specific sectors of interest included pharmaceuticals and healthcare, chemicals and petrochemicals, micro, small, and medium-sized enterprises (MSMEs), and banking and finance. Streamlining visa processes for business travelers and experts was identified as a priority to facilitate smoother trade and investment flows.
India sees Brazil as its largest trading partner within the Latin American and Caribbean (LAC) region. In the fiscal year 2024-25, bilateral merchandise trade reached USD 12.19 billion. The two countries have set an ambitious target to increase this figure to USD 20 billion over the next five years.
The meeting was co-chaired by Commerce Secretary Rajesh Agrawal and Tatiana Lacerda Prazeres, Secretary of Foreign Trade at the Ministry of Development, Industry, Trade and Services of Brazil. The outcomes of the TMM meeting are slated for review by the Vice President of Brazil and the Minister of Commerce and Industry of India during the Vice President's upcoming visit to India next week.
Previously, in July 2025, during Prime Minister Narendra Modi's state visit to Brazil, the two nations had already agreed to elevate trade talks and establish a ministerial-level mechanism for monitoring trade, commerce, and investment-related matters. At that time, Prime Minister Modi requested Brazil's support in expanding the India-MERCOSUR PTA, emphasizing the mutual benefits of such an expansion. Moreover, easing visa processes for Indian tourists was also discussed.
Both leaders have acknowledged the ample opportunities for diversifying and expanding bilateral trade, with a focus on South-South cooperation across global platforms like BRICS, G20, IBSA, and the UN.
