Closer Ties Ahead: Brazil's Vision for an Advanced Trade Accord with India

17 Oct, 2023

Closer Ties Ahead: Brazil's Vision for an Advanced Trade Accord with India

Brazil is actively engaged in efforts to strengthen its trade partnership with India, a move that holds significant promise for their economic relations. The Brazilian government is spearheading an initiative aimed at garnering support from MERCOSUR countries, a group of South American nations, to conduct a comprehensive feasibility study. This study is intended to assess the potential expansion of their current trade agreement with India, which was originally established back in 2004.

During the recent 6th Meeting of the Bilateral Trade Monitoring Mechanism held at the MDIC, representatives from both nations engaged in discussions regarding the longstanding expansion of the India-MERCOSUR Trade Agreement.

Local reports indicate that Tatiana Prazeres, the Secretary of Foreign Trade at MDIC, emphasized the importance of cultivating new business partnerships and creating opportunities for Brazilian products to tap into burgeoning markets.

Analyzing the trade dynamics between Brazil and India highlights significant untapped potential for expansion. Over the past year, the total trade volume reached $15.2 billion. Yet, these figures represent merely two percent of Brazil's total exports and 3.3 percent of its imports. This becomes even more evident when you factor in that a considerable 80 percent of Brazil's exports to India primarily encompass three products: soybean oil, petroleum, and various other commodities.

In the coming week, the Brazilian Ministry of Development, Industry, and the Foreign Trade Secretariat is preparing to launch a public consultation. This initiative seeks input and recommendations from academia, civil society, and the private sector on how best to expand and enhance trade relations with India.

Despite the considerable potential for increased trade between these two substantial economies, the existing trade interactions remain relatively modest.