Jun. 2 – India has announced that it would reduce customs duties for importing 450 items by 10 to 100 percent from Mercosur countries following a preferential trade agreement with South American nations, according to the Central Board of Excise and Customs.

The import duty concessions in the form of exemptions are set to be effective beginning June 1. Mercosur countries will be given preferential access to about 450 items from India, including split air-conditioner systems, refrigerators, leather and footwear, silk, cotton, meat, chemicals and glass.

The Mercosur bloc includes the governments of Argentina, Brazil, Paraguay, and Uruguay who agreed to the signed the Treaty of Asuncion to form the Southern Common Market. Venezuela is under the process of becoming a full-fledged member of the bloc as well.

The trade agree between the group and India should increase bilateral trade and investment flow and is the first step towards a Free Trade Area between Mercosur and India.