Mercosur, SACU and India to propose trade pact

A TRILATERAL free trade agreement (T-FTA) between Mercosur, SACU and India is likely to be proposed during the triangular IBSA (India, Brazil and South Africa) political summit on September 13 in Brazil. The aim is to enhance the aggregate trilateral trade flows among Mercosur-SACU, Mercosur-India and SACU-India from $4 billion to $10 billion in the short term in an attempt to develop trade convergence between the three. They could also create a market of 1.2 billion people, $1.2 trillion of gross domestic product (GDP) and foreign trade worth $300 billion. The possible substitution of imports from northern countries by imports from southern countries and the strengthening of business-to-business ties among the three countries could also be considered. The summit will explore potential areas of co-operation among the three countries in focus sectors, including information and technology, telecommunications, infrastructure, energy and agriculture. Source: Siddiqui, Huma; www.bilaterals.org