New Delhi is aiming to expand its economic engagement with the South American trading bloc MERCOSUR
India and Brazil have held discussions in New Delhi about ways to boost economic cooperation and bilateral investment.
The BRICS members, who have both been slapped with 50% tariffs by Washington, held the seventh meeting of the India-Brazil Trade Monitoring Mechanism (TMM) on Tuesday. The mechanism provides a platform for the two sides to discuss trade-related issues, identify areas of cooperation, and resolve trade concerns.
The talks marked a significant step towards strengthening trade relations between the two nations, officials said. Indian Commerce Secretary Rajesh Agrawal and Brazilian Secretary of Foreign Trade Tatiana Lacerda Prazeres led the discussions.
The meeting focused on expanding the preferential trade agreement between India and the South American trading bloc MERCOSUR, according to an official statement. The sides also explored ways to enhance collaboration in key sectors such as pharmaceuticals, chemicals, micro, small, and medium enterprises, and finance.
BRICking Good! India & Brazil Push for Preferential Trade Pact 🇮🇳🤝🇧🇷
Talks on improving market access, visa regulations, and cooperation in pharma, healthcare, MSME, and banking were recently held, according to an official statement.
In July, Indian Prime Minister Narendra Modi met with Brazilian President Luiz Inacio Lula da Silva after the BRICS summit in Rio de Janeiro and set a target to increase bilateral trade to $20 billion over the next five years.
The two leaders also reaffirmed the importance of “defending multilateralism and the need to confront current global challenges,” while exploring deeper integration between the two nations.
Both India and Brazil have faced constant economic pressure from the administration of US President Donald Trump.
In August, the US slapped 50% tariffs on imports from Brazil, in part because of Brasilia’s prosecution of former President Jair Bolsonaro, which Trump called a “witch-hunt.” Last month, Bolsonaro was sentenced to 27 years and three months in prison after being found guilty of plotting a military coup.
Washington also imposed 50% tariffs on India in August, 25% of which constituted a punitive levy for its continuing to purchase Russian oil. New Delhi has called the tariffs for buying crude from Russia “unfair, unjustified and unreasonable.”
Last month, US Commerce Secretary Howard Lutnick said Washington needs to “fix” countries such as India and Brazil so that they open their markets and do not act against American interests.
