Diplomatist Magazine Diplomatist September 2019 | Page 16

SPECIAL REPORT
Figure 6 – India and Mercosur bilateral trade flows
Source: own elaboration based on Trade Map.
Figure 7 –Exports of India to Mercosur by product and country
Source: own elaboration based on Trade Map.
Figure 8 –Imports of India from Mercosur by product and country
Source: own elaboration based on Trade Map.
16 • Extraordinary and Plenipotentiary Diplomatist • Vol 7 • Issue 9 • September 2019, Noida
filaments, chemicals, vehicles
and plastics. India faces very
high tariffs imposed by the
Mercosur countries and the
main products are excluded
from the preferential tariff when
considering the agreement in
force.
I n d i a ’s i m p o r t s f r o m
Mercosur are also concentrated
in few products: mineral fuels,
mineral oils, vegetable oils and
sugar confectionery. There are
few products exported from
Mercosur to India included in
the agreement, but in this case,
the preference seems to be non-
significant, it is only 1%.
Some conclusions
• Trade between India and
Mercosur countries is low
and it is concentrated in a few
products.
• There is room to deepen the
current agreement between India
and Mercosur: complementarity
is growing.
• The reduction of tariffs
seems to be insufficient: genuine
market integration requires
addressing non-tariff measures
(NTMs) and to harmonize other
trade chapters.
• The inclusion of services
seems to be crucial in order to
expand trade relations.
• Convergence: regulatory
collaboration is crucial. n
* Author is Dean, School of
Business, Catholic University
of Uruguay