Stronger India-Brazil ties to give Global South a bigger say

New Delhi: India and Brazil are strengthening trade, investment and energy ties as part of the BRICS bloc, a move that is expected to boost the negotiating power of the Global South at a time when the turmoil over US tariffs has increased uncertainty in global trade.

The two countries have decided to go in for a substantial expansion of the agreement between India and MERCOSUR member states, aiming for a significant share of the bilateral trade to benefit from tariff preferences, according to a joint statement issued after a meeting held here between the Vice President of Brazil, Geraldo Alckmin, and India’s Minister of Commerce and Industry, Piyush Goyal.

The agreement between India and MERCOSUR -- comprising Brazil, Argentina, Bolivia, Paraguay, and Uruguay -- was signed on June 17, 2003 with the aim of strengthening relations and promoting the expansion of trade. According to the joint statement, the expansion of the agreement should cover both tariff and non-tariff issues related to trade and economic partnership.

“Analysts say the push is not just about shielding their economies from punitive US tariffs, but also about asserting influence on multilateral issues ranging from energy security to global climate policy,” according to an article in the South China Morning Post’s publication This Week in Asia.

Brazil is India’s largest trade partner in South America, and the two countries agreed to raise bilateral trade to $20 billion by 2030 from $12 billion last year.

“This is a partnership of weight and complementarity. There is a reason to be together because their interests coincide, but it is also in the interest of humankind,” Manjeev Puri, India’s former ambassador to the European Union, said.