India, Mercosur to Explore Bilateral Trade Pacts: Goyal

New Delhi, Mar 19 (PTI) Commerce Minister Piyush Goyal on Wednesday proposed that India and the four-nation bloc Mercosur can explore signing bilateral free-trade agreements.

His statement assumes significance as the efforts to expand the scope of the Preferential Trade Agreement (PTA) between India and the Mercosur trade bloc, including Argentina, Brazil, Paraguay and Uruguay, have not made headway. Expanding the preferential trade agreement with the Mercosur nations is key for India to increase its trade in the South American region.

"I propose either the MERCOSUR region decide if it wants to expand a PTA or we can look at doing it bilaterally," Goyal said at a CII event.

He mentioned that India was entering into bilateral agreements which will help expand the country's trade.

Goyal also said that India is also working with Chile to expand its PTA with Chile and turn it into a Comprehensive Economic Partnership Agreement. The PTA with Chile was signed in 2006 and expanded in 2017. Within the LAC region which includes 33 countries the FTA negotiations with Peru are in advanced stages.

He said that amidst challenges like the global economic slowdown, supply chain disruptions and fluctuating FDI, India stands committed to advancing its relationship with the LAC countries.

India went ahead with a bilateral trade deal with UAE when the talks to secure a trade pact with Gulf Cooperation Council nations weren't making much headway.

Goyal pointed out that trade between India and the UAE has doubled in the last three years post the agreement. The minister also pushed for early conclusion of FTA talks. He said that agreements which are long-drawn and negotiated over 10-20 rounds cannot be fructified into solid partnerships.

"We have been talking about a free trade agreement with Peru for a very long time. We need to make up our minds on where we want to get with that'¦FTAs that are negotiated over as much as 20 rounds, negotiated over engagements in once in six months or 12 months can never fructify into solid partnership," Goyal said.

"We must make up our mind either we do it (FTA), we do it fast. Or we agree to trade the way we are and see what we can do best within our existing arrangement," he added.

He said one of India's concerns while negotiating trade agreements with LAC countries is the significant presence of non-market economies in the region.

"Any agreement we are looking at also has to address how we will ensure that non-market economies do not make use of your region as a route to come to India," Goyal said. Non-market economies include China, among other nations.

"If we agree to respect each other's sensitivities we can start looking at ways to expand trade faster," observed the minister.