MERCOSUR consists of Brazil, Argentina, Uruguay and Paraguay.
Venezuela joined Mercosur in 2005 as a special member and has applied to become a full member. Bolivia and Ecuador have also applied for full membership of Mercosur. This has been agreed in principle but the details are under negotiation.
Chile, Bolivia and Peru are associate members.
MERCOSUR was formed in 1991 with the objective of free movement of goods, services, capital and people and it became a customs union in January 1995. It is now pursuing the third stage of its integration ‘Common Market’.
Intra-Mercosur trade is duty-free while there is Common External Tariff (CET) for imports from other countries. The average CET is 14 percent and it ranges from 0 to 20 percent. CEP has 800 exceptions including cars and sugar. The Customs Union does not function perfectly and there are disputes from time to time.
MERCOSUR has become a successful regional market of 240 million
people with a GDP of two trillion dollars. It is the third largest
integrated market after EU and NAFTA.
Mercosur’s role model is European Union. Its integration project
envisages coordination of macro economic policies, common currency,
Mercosur Bank, common citizenship and cooperation in development of
infrastructure culture and education. Mercosur countries have an Air
Services Agreement under which airlines of member countries can fly into
the international airports of the region freely. The region is binding
itself with a growing network of cross-border roads, electricity
grids, gas pipelines and other infrastructural linkages.
The Secretariat of MERCOSUR is located at Montevideo in Uruguay. But
it does not have supranational powers like the EU Secretariat in
The Presidency of Mercosur rotates between member states every six months marked by summit meetings.
The Mercosur countries have agreed to use their own currencies for
intra-Mercosur trade instead of using US dollars. A beginning has been
made between Argentina and Brazil.
India’s trade with Mercosur in 2008 was 5.6 billion dollars of which our exports were 3.8 billion and imports 1.8 billion.
India- Mercosur PTA ( preferential Trade Agreement )
This was concluded in March 2005 and has become operational since June 2009.. Preferential duty (10-20 percent in most cases) is given to 450 Indian products entering MERCOSUR and reciprocal concession to 450 products of MERCOSUR entering India.
Duty discounts offered for 452 Indian exports: For 394 products: 10%, For 45 products: 20 %, For 13 products: 100%.
Duty discounts offered on 450 Mercosur exports: For 93 products: 10%, For 336 products: 20%, For 21 products: 100%.
List of 450 Mercosur items for which India gives Tariff preference
List of 452 items of India´s exports for which Mercosur gives tariff preference
Expansion of India- Mercosur PTA
Tthe India - Mercosur PTA which has become operational since June 2009, covers 450 itmes of our exports and 450 items of Mercosur exports. These lists are in our embassy website. It has now been decided to expand the lists.
In the India- Mercosur meeting held in New Delhi on 15 June 2010, Mercosur has given its wish list of 1600 items and India has given its list of 3200 items. These will be finalised in the meeting proposed in september 2010. Meanwhile our commerce ministry will consult our export promotion councils and trade and industry bodies on these lists. Indian exporters, export promotion councils and trade and industry bodies can present their cases to the Indian commerce ministry..mentioning the item with the HS code and percentage of preference you desire.
Contacts in commerce Ministry
Anil Mukhim, JS email@example.com
Shubha Sarma DS firstname.lastname@example.org