India and the MERCOSUR bloc have signed the First Additional Protocol to the India-MERCOSUR Preferential Trade Agreement (PTA) to facilitate the acceptance of electronic Certificates of Origin (CoOs). This marks a move toward paperless trade and more streamlined customs procedures under the existing PTA.
The protocol was signed on 14 September 2026 by India’s Commerce Secretary, Ambassador of Uruguay to India, and Ambassador of Paraguay to India.
Navigate India-MERCOSUR PTA
With India-MERCOSUR PTA talks underway, businesses should monitor trade procedure changes and their implications.Electronic CoOs to gain equal legal status
The First Additional Protocol amends Article 16 of Annex III on Rules of Origin of the India-MERCOSUR PTA.
Under the amendment, electronic CoOs will have the same legal validity and value as paper-based certificates. The electronic certificates must be issued and electronically signed in accordance with the domestic legislation of the respective parties by duly authorised entities and officials.
The change provides a formal basis for the use of electronic CoOs in establishing the origin of goods for preferential tariff treatment. It is also expected to reduce reliance on physical documentation and streamline the issuance and verification of origin certificates.
For traders, the shift could help reduce administrative work, processing time, and transaction costs associated with maintaining and verifying CoO.
India and MERCOSUR signed the PTA on 25 January 2004, and it entered into force on 1 June 2009.
As of September 2026, the agreement provides preferential tariff concessions covering 450 tariff lines for India and 452 tariff lines for MERCOSUR.
The First Additional Protocol does not change these tariff concessions. Instead, it updates the rules governing the documentation used to establish origin, supporting more efficient administration of preferential trade under the existing agreement.
Digital trade facilitation follows bilateral discussion
This latest development follows discussions under the Joint Administrative Committee of the India-MERCOSUR PTA.
At its fourth meeting on 27 November 2025, India and MERCOSUR agreed to update the agreement to facilitate the use of digital CoOs. The proposal was subsequently adopted by mutual consent at the committee’s fifth meeting on 9 April 2026.
This move reflects efforts by India and MERCOSUR to modernise trade documentation and customs procedures within the existing PTA framework.
India and MERCOSUR begin PTA expansion negotiations
Alongside the digital trade facilitation initiative, India and MERCOSUR have also begun negotiations to expand the scope of their PTA.
India’s Union Minister for Commerce and Industry Piyush Goyal and Uruguay’s Foreign Minister Mario Lubetkin, representing MERCOSUR’s Pro Tempore Presidency, announced the start of the negotiations on the same day.
The proposed expansion intends to cover areas of mutual interest and create additional trade and business opportunities for the private sectors of India and MERCOSUR countries.
India and MERCOSUR are currently working to finalise the Terms of Reference (ToR), which will establish the scope and structure of the expanded agreement.
The proposed expansion would build on the existing preferential trade framework and could broaden the areas covered by India-MERCOSUR economic engagement.
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India’s trade relations with MERCOSUR regions
Trade relations between India and MERCOSUR are already noteworthy, with Brazil and Argentina accounting for a substantial share of India’s merchandise trade with the bloc.
|
India’s Merchandise Trade Relations with MERCOSUR Countries in FY 2025-26 |
||
|
Countries/regions |
Exports from India (value in US$ million) |
Imports by India (value in US$ million) |
|
Argentina |
1,013.06 |
4,955.01 |
|
Brazil |
7,022.1 |
8,050.43 |
|
Paraguay |
188.22 |
26.26 |
|
Uruguay |
237.83 |
289.55 |
|
Bolivia |
55.99 |
1,257.81 |
Source: Department of Commerce, Ministry of Commerce and Industry, GoI
|
India’s Merchandise Trade Relations with MERCOSUR Associated States in FY 2025-26 |
||
|
Countries/regions |
Exports from India (value in US$ million) |
Imports by India (value in US$ million) |
|
Chile |
1,220.33 |
5,034.87 |
|
Colombia |
1,805.72 |
2,902.76 |
|
Ecuador |
447.42 |
126.74 |
|
Guyana |
152.75 |
278.13 |
|
Panama |
310.89 |
242.40 |
|
Peru |
1,149.13 |
8,870.46 |
|
Surinam |
26.69 |
20.98 |
Source: Department of Commerce, Ministry of Commerce and Industry, GoI
Protocol requires completion of internal procedures
The First Additional Protocol will enter into force after India and the MERCOSUR parties complete their respective internal procedures and notify each other accordingly.
Until the Protocol becomes effective, businesses should continue to comply with the existing requirements governing CoO under the India-MERCOSUR PTA.
Once implemented, businesses engaged in preferential trade should monitor the procedures governing the issuance, electronic signing, authentication, and acceptance of electronic CoOs in the respective jurisdictions.
Implications for businesses
The Protocol introduces a digital mechanism for CoO without changing the existing tariff concessions under the PTA. For exporters and importers, its implementation could simplify origin documentation and reduce administrative requirements associated with preferential trade claims.
At the same time, businesses should monitor the separate negotiations to expand the India-MERCOSUR PTA. Any future expansion could affect the products, sectors, or trade conditions covered by the agreement.
Together, the electronic CoO framework and proposed PTA expansion indicate a broader effort to modernise trade procedures and deepen India-MERCOSUR economic engagement.
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