India and MERCOSUR Sign First Additional Protocol to Facilitate Electronic Certificates

India and MERCOSUR have signed the First Additional Protocol to their existing Preferential Trade Agreement (PTA), aimed at enabling the use of electronic Certificates of Origin in bilateral trade. The protocol was signed by Commerce Secretary Shri Rajesh Agarwal along with the Ambassadors of Uruguay and Paraguay to India, in the presence of Uruguay's Foreign Affairs Minister H.E. Mr. Mario Lubetkin, who currently holds MERCOSUR's pro tempore presidency.

India–MERCOSUR Preferential Trade Agreement (PTA)

The India-MERCOSUR PTA was originally signed on 25 January 2004 and came into force on 1 June 2009. MERCOSUR itself is a South American trade bloc comprising Brazil, Argentina, Bolivia, Uruguay, and Paraguay. This new Protocol builds on that longstanding agreement by modernising how trade documentation is handled between the two sides.

PTA Covers Over 900 Tariff Lines

Under the existing PTA, India offers preferential tariff concessions on 450 tariff lines, while MERCOSUR countries offer concessions on 452 tariff lines, together covering more than 900 product categories. This wide tariff coverage has been a key pillar supporting trade flow between India and the bloc for over a decade.

Protocol to Facilitate Paperless Trade

The First Additional Protocol amends Article 16 of Annex III (Rules of Origin) under the PTA, granting electronic Certificates of Origin the same legal standing as paper-based ones. These digital certificates must be issued and signed electronically as per each country's domestic laws, by authorised entities. The move is expected to cut down transaction costs, speed up processing time, and reduce paperwork hassles tied to verifying certificates.

This decision followed discussions at the Joint Administrative Committee of the India-MERCOSUR PTA. The idea was first supported at its fourth meeting on 27 November 2025, and later formally adopted at the fifth meeting held on 9 April 2026. The protocol will officially take effect once India and MERCOSUR nations complete their internal procedures and notify each other accordingly.

This signing reflects the broader push by both India and MERCOSUR to modernise customs practices, deepen trade facilitation, and strengthen their institutional trade framework, marking another step forward in expanding their economic partnership.