Ø Protocol to Facilitate Paperless Trade
and Modernise Customs Procedures under India–MERCOSUR Preferential Trade Agreement
·
Key Milestone:
India and MERCOSUR signed the First Additional Protocol to the India-MERCOSUR Preferential
Trade Agreement (PTA) to formally accept electronic Certificates of Origin (e-COs).
·
Signatories:
The protocol was signed by India's Commerce Secretary Shri Rajesh Agarwal, Uruguay's
Ambassador H.E. Mr Alberto Guani, and Paraguay's Ambassador
H.E. Mr Fleming Raul Duarte Ramos, alongside representatives
from Argentina and Brazil.
·
Legal Validity:
Amends Article 16 of Annex III of the PTA, giving electronic Certificates of Origin
the same legal validity and value as traditional paper certificates when
signed according to domestic legislation.
·
Core Benefits:
Designed to streamline cross-border trade by cutting transaction costs, reducing
processing times, and driving the transition toward paperless customs procedures.
·
Background & Evolution:
o
The original India-MERCOSUR PTA was signed
on 25 January 2004 and entered into force on 1 June 2009 (covering
450 tariff lines by India and 452 by MERCOSUR).
o
The digital initiative was backed during
the 4th Joint Administrative Committee meeting (27 November 2025) and formally adopted
at the 5th meeting (9 April 2026).
·
Next Steps:
The protocol will officially enter into force once both India and the MERCOSUR member
countries complete their respective internal procedures and notify one another.
[ABS News Service/15.09.2026]
India and MERCOSUR signed the First Additional
Protocol to the India–MERCOSUR Preferential Trade Agreement (PTA) to facilitate
acceptance of electronic Certificates of Origin, marking an important step towards
facilitating paperless trade and modernising customs procedures between India and
the MERCOSUR countries.
The Protocol was signed by Commerce Secretary,
Government of India, Rajesh Agarwal and Ambassador of Uruguay to India H.E. Mr Alberto
Guani, and Ambassador of Paraguay to India, H.E. Mr Fleming Raul Duarte Ramos, in
the presence of the Minister of Foreign Affairs of the Oriental Republic of Uruguay
H.E. Mr Mario Lubetkin, in the exercise of the Pro Tempore Presidency of MERCOSUR
and the representatives from Embassies of Argentina & Brazil.
The India-MERCOSUR PTA was signed on 25
January 2004 and entered into force on 1 June 2009. The Agreement provides preferential
tariff concessions on 450 tariff lines by India and 452 tariff lines by the MERCOSUR
side.
The First Additional Protocol amends Article 16 of Annex III (Rules of Origin) of the PTA by
providing that Certificates of Origin issued in electronic format shall have the
same legal validity and identical value as Certificates of Origin issued in paper
format. Such electronic Certificates of Origin will be required to be issued and
electronically signed in accordance with the respective domestic legislation of
the Parties, by duly authorised entities and officials.
The move is expected to facilitate the
transition towards digital and paperless trade documentation, reduce transaction
costs and processing time associated with the issuance and verification of Certificates
of Origin, and improve the efficiency of preferential trade under the existing India-MERCOSUR
PTA.
The initiative follows discussions in
the Joint Administrative Committee of the India-MERCOSUR PTA. At its fourth meeting
held on 27 November 2025, both sides supported updating the Agreement to facilitate
the use of digital Certificates of Origin. The proposal for the Additional Protocol
was subsequently adopted by mutual consent at the fifth meeting of the Joint Administrative
Committee held on 9 April 2026.
The Protocol will enter into force upon
completion of the respective internal procedures by India and the MERCOSUR Parties
and notification of the same to each other.
The signing of the First Additional Protocol
underscores the commitment of India and MERCOSUR to deepen trade facilitation, adopt
modern customs practices and strengthen the institutional framework supporting bilateral
trade.
The signing also represents a significant
step in the ongoing engagement between India and MERCOSUR to further strengthen
and expand their trade and economic partnership.