Diplomatist Magazine Diplomatist September 2019 | Page 15

SPECIAL REPORT
Figure 3 - India’s trade agreements
Source: own elaboration based on WTO.
Figure 4 – Mercosur trade agreements
Source: own elaboration based on WTO.
of 10% to 393 products, 20% to 45 products and 100% to 14
goods (out of 452).
There is room to explore complementarities and benefit
from a deeper bilateral trade agreement. For example,
Mercosur could benefit from India’s global software and
pharmaceutical industries and India can ensure the supply of
oil and other natural resource needs through an association
with the Mercosur.
Even when both parties agreed with starting new trade
talks and in 2016, they exchanged a larger list of products
(India: 3,690 products and Mercosur: 1,287 products, which
would be extended but it never happened), finally, the
negotiations failed.
Bilateral trade is far away from the potential and the
performance is not necessarily related to the agreement. India
has strengthened its role but MERCOSUR’s exports to India
were down. If we look at the average growth rate between
2001 and 2018, India’s exports to Mercosur have increased
by 15.3% and India’s imports from Mercosur, in the same
period, have declined 3.3%.
Figure 5 – Products included in the Partial Scope
Agreement India - Mercosur
Source: own elaboration based on WTO.
Brazil is the key player in the bilateral relation
between Mercosur and India. India’s exports to Mercosur
are concentrated in few products such as man-made
Extraordinary and Plenipotentiary Diplomatist • Vol 7 • Issue 9 • September 2019, Noida • 15