India and Mercosur, a bloc of five South American countries, on Monday signed a protocol to facilitate the acceptance of electronic “Certificates of Origin” (CoO) under the preferential trade agreement (PTA).
The move comes at a time when India and the bloc are expanding the PTA.
The two sides on Monday announced the launch of negotiations for expansion after a meeting between Union Commerce Minister Piyush Goyal and Uruguay Foreign Minister Mario Lubetkin.
Commerce Secretary Rajesh Agrawal signed the protocol in New Delhi with Ambassador of Uruguay to India Alberto Guani, and Ambassador of Paraguay to India Fleming Raul Duarte Ramos.
Following the signing of the protocol, Certificates of Origin issued in electronic format will have the same legal validity and value as Certificates of Origin issued in paper format, the commerce ministry said in a press statement.
“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 statement added.
Certificates of Origin ascertain that the goods are in accordance with the “Rules of Origin” in the trade deal. The Rules of Origin prescribe the conditions that determine whether a product can be treated as originating in either country. Broadly, goods must either be wholly obtained in one of the two countries or undergo substantial value addition there.
The protocol amends the relevant section on the Rules of Origin within the PTA and it will enter into force after the sides complete their respective internal procedures and issue a notification to each other.
The amendment to the PTA is expected to facilitate the transition to 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.
India and Mercosur, which has Argentina, Bolivia, Brazil, Paraguay, and Uruguay as full members, had signed the PTA in 2004 and operationalised it in 2009.
The agreement provides preferential tariff concessions on 450 tariff lines by India and 452 tariff lines by the Mercosur side.
India and Mercosur in 2025-26 had bilateral trade with $21.8 billion.
The signing of the protocol underscores the commitment of India and the bloc to deepen trade facilitation, adopt modern customs practices, and strengthen the institutional framework supporting bilateral trade, the press statement mentioned.
