New Delhi [India], October 16 (ANI): India and Brazil on Thursday reaffirmed their commitment to strengthening trade ties through a deeper MERCOSUR-India Preferential Trade Agreement (PTA), according to a release by the Ministry of Commerce & Industry.

The announcement came after a meeting between Brazil's Vice President and Minister of Development, Industry, Trade and Services, Geraldo Alckmin, and Union Minister of Commerce and Industry, Piyush Goyal.

The two leaders welcomed the mutual interest of India and MERCOSUR Member States in expanding the existing PTA to promote trade and investment. Recalling the Framework Agreement signed on June 17, 2003, they agreed that the expansion should be substantial, aiming for a significant share of bilateral trade to benefit from tariff preferences.

The full member countries of MERCOSUR are Argentina, Brazil, Paraguay, and Uruguay, while Bolivia became a full member in July 2015. Venezuela was a member but was suspended in 2016.

According to the ministry's release, both leaders also underscored the importance of including both tariff and non-tariff issues in the negotiations and promoting active participation of the private sector and other stakeholders.

As a next step, both sides agreed to initiate a technical dialogue, including convening a meeting of the Joint Administration Committee under Article 23 of the PTA at the earliest mutually convenient date to define the scope of expansion.

Both parties expressed their intention to conclude the negotiations within one year of their launch. The Brazilian side further indicated it would work in coordination with its MERCOSUR partners towards a substantial, swift, and mutually beneficial deepening of the agreement.Earlier in July, during his State Visit, Prime Minister Narendra Modi had set a target to scale up bilateral trade with Brazil from the existing 12.2 billion to 20 billion dollars in the next five years.

PM Modi and Brazilian President Luiz Inacio Lula da Silva discussed strengthening bilateral trade, including the expansion of the India-MERCOSUR Preferential Trade Agreement.

The leaders set a target to increase bilateral trade to USD 20 billion over the next five years. Taking stock of the ongoing cooperation in the energy sector, the two leaders agreed to explore investment opportunities, as there exists immense potential in the hydrocarbon and renewable energy sectors in both countries. (ANI)