Brazil Likely to Approve India-Mercosur International Trade Deal

Brazil is expected to formally approve the proposed PTA (preferential trading agreement) between India and Mercosur in the next few months. According to Brazilian Foreign Minister Celso Amorim, the ratification of the proposed international trade deal was facing a procedural delay. But he stated that the PTA was likely to be approved before or after the visit of President Luiz Inacio Lula da Silva to India in June. The proposed preferential trade agreement is expected to boost international trade between India and the members of the Mercosur.

It must be noted that the proposed international trade agreement has already been ratified by India and the other members of Mercosur except Brazil. The Brazilian foreign minister also vowed to back the efforts of India to protect the agricultural industries of developing countries and the livelihood of small-scale farmers in the on-going Doha Development Round. Mr. Amorim said that he would support the case of special products, which would be excluded from tariff cut commitments. With its booming economy, India, along with Brazil, represents the interests of the developing countries in the international trade talks under the World Trade Organization (WTO).

Two weeks ago, Mr. Amorim attended the ministerial-level meeting that was held by the members of the G6 (the United States, the European Union, Brazil, India, Japan, and Australia). The conference has been aimed at breaking the deadlock in the Doha Round. It must be noted that the negotiations have made a slow progress since they were launched in 2001. Last July 2006, the talks were suspended due to the failure of the WTO members to resolve international trade issues concerning market access and farm subsidies. Although the Doha Round formally resumed in Geneva last January, the WTO has not yet made a significant progress in the talks. Needless to say, the members of the G6 are optimistic about the success of the negotiations.

Meanwhile, Mr. Amorim said that his country would back the demand of India for special products in the Doha Development Round. The Brazilian foreign minister made this comment during a seminar organized by the Confederation of Indian Industry (CII). When he was asked about the delay of the PTA's approval, Mr. Amorim said that there was no problem as regards the content of the international trade deal. According to him, his country was taking a long time in approving the PTA due to procedural delays. The proposed PTA is expected to boost international trade between India and the Mercosur members. Mercosur comprises Paraguay, Venezuela, Uruguay, Argentina, and Brazil.