Commerce Secretary to visit Latin America, focus on trade ties
What's the story
Commerce Secretary Rajesh Agrawal will be visiting Latin America from August 24 to 28. The move is part of India's strategy to diversify its trade partnerships, particularly with Brazil and Argentina. During his visit, Agrawal will attend Joint Trade Committee (JTC) meetings as part of ongoing discussions to upgrade the existing Preferential Trade Agreement (PTA) with the MERCOSUR bloc.
Trade negotiations
Sugar trade dispute with Brazil to be discussed
The agenda for the JTC meetings includes finalizing the Terms of Reference (ToR) for negotiating an expanded PTA.
The India-Brazil sugar trade dispute at the World Trade Organization (WTO) will also be discussed.
Brazil has alleged that India's domestic support to sugarcane producers and export subsidies for sugar violate WTO agreements, while India maintains its policies are within its rights under these commitments.
Trade expansion
India-MERCOSUR PTA
India has had a PTA with MERCOSUR since 2009, which includes Brazil, Argentina, Paraguay, Uruguay, and Bolivia.
The scope of this agreement is being expanded from the current 450-odd tariff lines.
Notably, MERCOSUR countries account for over 67% of South America's total economic share.
This visit comes as India intensifies its focus on South America as part of its trade diversification strategy.
Trade agreements
Trade talks with Chile at advanced stage
Agrawal will also chair joint trade meetings in Argentina and Brazil, and review the progress of a proposed comprehensive trade agreement with Chile.
The talks between New Delhi and Santiago are at an advanced stage, with only a few issues left to be resolved.
These include market access and critical minerals, as both sides look to expand their existing PTA into a Comprehensive Economic Partnership Agreement (CEPA).
Trade statistics
Bilateral trade between India and Argentina
The bilateral trade between India and Argentina grew by 25.5% in 2025-26 to $5.96 billion.
Meanwhile, the two-way trade between India and Brazil also grew by a whopping 23.48% to $15 billion during the same period.
This data highlights the growing economic ties between these nations and further emphasizes the importance of Agrawal's upcoming visit to Latin America for India's trade diversification efforts.