India-Mercosur PTA to be ratified
Brazilian foreign minister Celso Amorim has said that the country would soon ratify the India-Mercosur preferential trade agreement (PTA) as India has agreed to remove cocaine and cocaine products from the list of items to be traded.
By Amiti Sen, TNN |
NEW DELHI: Brazilian foreign minister Celso Amorim has said that the country would soon ratify the India-Mercosur preferential trade agreement (PTA) as India has agreed to remove cocaine and cocaine products from the list of items to be traded. Mercosur countries include Brazil, Argentina, Paraguay and Uruguay. The minister disclosed that the PTA was stuck in the Brazilian Parliament for some time as some in the Congress had objected to the inclusion of concern in the agreement which was to be traded for medicinal uses. He said that the Mercosur was upbeat about the bilateral pact and wanted to upgrade it to include a larger number of products and have an agreement on the lines of a bilateral free trade agreement (FTA).
Speaking to ET, Mr Amorim, who is in Delhi for the India-Brazil-South Africa (IBSA) meeting, said that it was much easier to include all items in an agreement and keep out only the products put up on the negative list. “When you start trading on the basis of a positive list, a lot of problems crop up. It is much better to do it on the basis of a negative list,” he said.
The India-Mercosur agreement is on the basis of a positive list. The Mercosur countries have agreed to give preferential access to about 460 items from India which includes split air-conditioner systems, refrigerators, leather and footwear, silk, cotton, meat, chemicals and glass & glass products.
India, on the other hand, will give preferential access to 423 products originating from the four Mercosur members including chemicals, machine tools, petrochemicals, steering boxes and electrical equipment. Except Brazil, all other countries have ratified the PTA. The fourth joint commission meeting in New Delhi on Tuesday favoured early conclusion of the stalled Doha round of WTO talks. They asked rich nations to eliminate distortions in global trade and allow greater access to developing countries. Addressing a media conference, Mr Amorim said that the Doha round was not dead and gone. “If there can be some sort of agreement by September or October this year, it can allow full agreement before the US Presidential polls next October,” he said.
Speaking to ET, Mr Amorim, who is in Delhi for the India-Brazil-South Africa (IBSA) meeting, said that it was much easier to include all items in an agreement and keep out only the products put up on the negative list. “When you start trading on the basis of a positive list, a lot of problems crop up. It is much better to do it on the basis of a negative list,” he said.
The India-Mercosur agreement is on the basis of a positive list. The Mercosur countries have agreed to give preferential access to about 460 items from India which includes split air-conditioner systems, refrigerators, leather and footwear, silk, cotton, meat, chemicals and glass & glass products.
India, on the other hand, will give preferential access to 423 products originating from the four Mercosur members including chemicals, machine tools, petrochemicals, steering boxes and electrical equipment. Except Brazil, all other countries have ratified the PTA. The fourth joint commission meeting in New Delhi on Tuesday favoured early conclusion of the stalled Doha round of WTO talks. They asked rich nations to eliminate distortions in global trade and allow greater access to developing countries. Addressing a media conference, Mr Amorim said that the Doha round was not dead and gone. “If there can be some sort of agreement by September or October this year, it can allow full agreement before the US Presidential polls next October,” he said.
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