The new Tariff Preferences Agreement (APTF) Mercosur-India is already in force since June 1st. India was the first country outside the South American continent to enter into an agreement with Mercosur. After its approval by Congress, made public through the Legislative Decree No 221 of September 3, 2008, the Agreement on Preferential Trade between Mercosur and the Republic of India, concluded in New Delhi on January 25, 2004 was promulgated through Decree No. 6864 of May 29, 2009. This is the first step to creating an area of free trade between the signatories.

According to Decree 6864, the agreement provides tariff preferences partial (10% and 20%) and total (100%) on agricultural products of the sectors of oil, the chemical and drugchemicals, photographic products, rubber, tools, goods of capital, telephony devices, in leather, textiles and glass. Decree 6865 of same date, shows the type of certificate of origin to be adopted by companies in the Mercosur and India.

Annexes I and II of the Agreement establishing the tariff preferences for a list of 450 codes of the Mercosur Common Nomenclature (NCM) and 449 codes in Indian nomenclature. Annexes III, IV and V deal with Rules of Origin, Safeguards and Dispute Settlement, respectively. All files are available on the website of the Ministry of Development, Industry and Foreign Trade, for free access.

Administration

The Joint Administrative Committee, composed of representatives of the Indian government and the Mercosur countries, will be responsible for administration of APTF. The body has a maximum of 60 days after the start of the agreement to meet. The committee has as main function to increase the number of products and increase the margins of preference of the agreement, and encourage dialogue between the parties, and to consider amendments to the agreement the countries, establish mechanisms for effective participation of the private sector, exchange views and suggestions for achieving mutual interest. The committee shall meet at least once a year.

Font: Secex Information number 9, of June 26th 2009