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). According to reports from Business Standard, the protocol was signed by Commerce Secretary Rajesh Agrawal in New Delhi with Ambassador of Uruguay to India Alberto Guani and Ambassador of Paraguay to India Fleming Raul Duarte Ramos. Following the signing, the two sides announced the launch of negotiations for expansion after a meeting between Union Commerce Minister Piyush Goyal and Uruguay Foreign Minister Mario Lubetkin. The move comes at a time when India and the bloc are expanding the PTA, with the signing highlighting the strategic importance of modernizing trade documentation processes and improving operational efficiency in bilateral trade relations.
According to the commerce ministry press statement, electronic Certificates of Origin issued in electronic format will have the same legal validity and value as Certificates of Origin issued in paper format. The protocol amends the relevant section on the Rules of Origin within the PTA and will enter into force after the sides complete their respective internal procedures and issue a notification to each other. 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, as stated in the commerce ministry release. The amendment 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.
As reported by Business Standard, 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 had bilateral trade of $21.8 billion in 2025-26. Certificates of Origin ascertain that goods are in accordance with the Rules of Origin, which prescribe conditions determining whether a product can be treated as originating in either country, with goods either being wholly obtained in one country or undergoing substantial value addition there.
According to the commerce ministry statement, 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 move comes at a time when India and the bloc are expanding the PTA, with the signing highlighting the strategic importance of modernizing trade documentation processes and improving operational efficiency in bilateral trade relations. The protocol represents a significant step forward in digital trade facilitation and institutional strengthening between the two trading partners.
