New Delhi: Brazil expects that the expansion of tariff lines in the India-Mercosur trade agreement will be completed within “ten months” said Brazilian Vice President Geraldo Alckmin Friday. Alckmin also highlighted Brazil’s keen interest in stepping up defence
cooperation with New Delhi, as New Delhi and Brasilia look to strengthen ties amidst the shadow of 50 percent tariffs imposed by the US on both nations.
“Mercosur did not have new agreements for 12 years. In 2023 it started with signing a trade agreement with Singapore, last year it signed one with EFTA (European Free Trade Association), you have now Mercosur negotiating with the European Union, with the UAE, with Canada.
“The agreement with India is very narrow, it is very small. It is for fuel products…. This is what we want to expand and we believe it should be done in 10 months,” Alckmin said at a press briefing before departing from New Delhi.
The Brazilian Vice President, who is also Minister of Development, Industry, Trade and Services was in India for a three-day visit from 15 October to 17 October. The Brazilian Minister of Defence José Múcio and the Minister of Health Alexandre Padilha also joined
Alckmin on the visit to India.
Embraer, the Brazilian aerospace corporation that produces both civilian and military aircraft, announced a memorandum of understanding (MoU) with India’s Mahindra Friday.
The aim of the agreement is to eventually develop and produce the C-390 Millennium military transport aircraft in India. Alckmin underscored the agreement as part of Brazil’s strategy to “Make in India” and deepen defence cooperation. Embraer opened an office in New Delhi Friday, during the visit of the Brazilian delegation to India.
Alckmin met Piyush Goyal, India’s Minister of Commerce and Industry Thursday, where the two leaders issued a joint declaration on the expansion of the India-Mercosur Preferential Trade Agreement (PTA). The agreement, which was signed in 2004, came into force in 2009. The PTA was considered a first step before a larger trade deal. However, as Alckmin noted, Mercosur for 12 years did not focus on signing any new agreements.
Mercosur is a free trade association in South America that consists of Argentina, Bolivia, Brazil, Paraguay and Uruguay. Brazil is one of India’s largest trading partners in South America, with two-way merchandise trade touching $12 billion in the last financial year
(2024-2025).
“This year our trade is on record to close at $15 billion. The goal is to quickly reach $20 billion. For this we will improve the preferential tariff lines. In the next months we will work to broaden tariff lines and also grow investments,” said Alckmin.
He added: “Before coming here, we signed two decrees, one which established an investment facilitation agreement and another on avoiding double taxation for Indian companies. These agreements will bring more legal certainty to the business of both Brazil and India.”
India-Brazil momentum amidst US tariffs
While in India, Alckmin addressed the India-Brazil Business Dialogue Thursday along with Goyal. The focus on trade comes as both New Delhi and Brasilia have been hit by 50 percent tariffs by US President Donald J. Trump. Trump has taken issue with Brazilian
President Lula, and also the investigation into the ex-President of Brazil Jair Bolsonaro by the South American nation’s prosecutor. Bolsonaro refused to hand over power to Lula after losing the last elections and is considered close to Trump.
The American President has taken issue with India for New Delhi’s continued purchase of Russian oil. The two economies have been hit with some of the highest tariffs by the US. Another thing both countries have in common is the membership to the BRICS+ organisation, that includes eight other countries including Russia, China and South Africa.
Trump has called the organisation “anti-American” and threatened to impose tariffs on its members. Alckmin, when questioned on Trump’s comments against BRICS+ defended the grouping as one “for free-trade and not anti-anyone”.
India is set to take over the chairmanship of BRICS+ in 2026 from Brazil. Lula is expected to travel to India in February 2026. Apart from strengthening trade and defence cooperation, the two countries are also looking to engage extensively in the oil sector.
Brazil’s Petrobas signed an agreement to sell six million barrels of crude to India, while Brasília imports refined diesel from New Delhi. Alckmin also announced that two new exploration projects will soon be launched in Brazil and welcomed investments from Indian firms for them.
“From next week we will have a business eVisa. The embassy here and the consulate in Mumbai will issue electronic business visas for Indians,” said Alckmin as the South American nation is looking for more Indian investment. India’s total investment in Brazil is roughly $6 billion. A number of Indian companies such as Tata Motors, Mahindra Tractors, Infosys, TCS, Wipro, Sun Pharma and Glenmark are already in the Brazilian economy.
(Edited by Viny Mishra)
Also read: India-Brazil issue joint declaration to deepen trade as Delhi seeks to diversify export markets