MERCOSUR Group

Context

India and MERCOSUR recently signed the First Additional Protocol to their Preferential Trade Agreement (PTA), enabling the use of electronic Certificates of Origin and making trade-related procedures more efficient.

About MERCOSUR

1. MERCOSUR, short for Mercado Común del Sur or Southern Common Market, is a regional economic bloc in South America established through the Treaty of Asunción in 1991.
2. Its broad objective is to promote greater economic integration through the movement of goods, services, capital and people among participating countries.
   1. It became a customs union in 1995.
3. It ranks as the world’s fourth-largest integrated market, following the European Union, NAFTA and ASEAN.
4. Membership
   1. The bloc was initially formed by Argentina, Brazil, Paraguay and Uruguay.
   2. Bolivia subsequently joined as a member.
   3. Venezuela joined later but has been suspended since 2016.
   4. Chile, Colombia, Ecuador, Guyana, Peru and Suriname participate as associate members.
5. Headquarters: Montevideo, Uruguay.
6. Working languages: Spanish and Portuguese.
7. Decision-making
   1. The Common Market Council is the bloc’s highest policy-making body.
   2. It brings together the foreign and economic ministers of member countries.
   3. Decisions are generally taken through consensus.
   4. The presidency rotates every six months among full members.

India–MERCOSUR Relations

1. India and MERCOSUR signed a Preferential Trade Agreement (PTA) on 25 January 2004, which became operational on 1 June 2009.
2. The agreement provides preferential tariff treatment on selected products:
   1. India: 450 tariff lines.
   2. MERCOSUR: 452 tariff lines.
3. The recently signed Additional Protocol on electronic Certificates of Origin is intended to simplify documentation and facilitate smoother bilateral trade.

FAQs

Q1. What is MERCOSUR and when was it founded? 

MERCOSUR (Southern Common Market) is a South American economic bloc created by the Treaty of Asunción in 1991, becoming a customs union in 1995.

Q2. Which countries are members of MERCOSUR? 

1. Founding members: Argentina, Brazil, Paraguay, Uruguay.
2. Later: Bolivia joined; Venezuela joined but was suspended in 2016.
3. Associate members include Chile, Colombia, Ecuador, Guyana, Peru, Suriname.

Q3. Where is MERCOSUR headquartered and what are its working languages? 

1. Headquarters: Montevideo, Uruguay.
2. Languages: Spanish and Portuguese.

Q4. How does MERCOSUR make decisions? 

Through the Common Market Council, comprising foreign and economic ministers. Decisions are by consensus, with the presidency rotating every six months.

Q5. What is the nature of India–MERCOSUR relations? 

India signed a Preferential Trade Agreement (2004, operational 2009) covering 450 tariff lines (India) and 452 (MERCOSUR). In 2026, both signed an Additional Protocol enabling electronic Certificates of Origin to ease trade.