Indian Economy News

India and MERCOSUR Sign First Additional Protocol to Facilitate Electronic Certificates of Origin

India and MERCOSUR have signed the First Additional Protocol to the India-MERCOSUR Preferential Trade Agreement (PTA) to facilitate the acceptance of electronic Certificates of Origin, marking a step towards paperless trade and modernised customs procedures. The Protocol was signed by Commerce Secretary, Government of India, Mr. Rajesh Agarwal, Ambassador of Uruguay to India, Mr. Alberto Guani, and Ambassador of Paraguay to India, Mr. Fleming Raul Duarte Ramos, in the presence of Foreign Affairs Minister of Uruguay, Mr. Mario Lubetkin, and representatives from the Embassies of Argentina and Brazil. The India-MERCOSUR PTA was signed on January 25, 2004, and entered into force on June 1, 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 on Rules of Origin, providing that electronically issued Certificates of Origin will have the same legal validity and value as paper certificates. The electronic certificates will be issued and electronically signed in accordance with the respective domestic legislation of the participating parties by authorised entities and officials. The move is expected to reduce transaction costs and processing time associated with issuing and verifying Certificates of Origin while improving the efficiency of preferential trade under the existing PTA. The initiative follows discussions at the Joint Administrative Committee, with both sides supporting the adoption of digital Certificates of Origin at its fourth meeting in November 2025. The proposal was subsequently adopted by mutual consent at the fifth meeting in April 2026. The Protocol will enter into force after India and the MERCOSUR parties complete their respective internal procedures and notify each other. The agreement is expected to strengthen trade facilitation and modern customs practices while supporting deeper India-MERCOSUR trade and economic cooperation.

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