New Delhi: India and MERCOSUR have taken a major step towards modernising trade procedures by signing the First Additional Protocol to the India-MERCOSUR Preferential Trade Agreement (PTA). The protocol will give electronic Certificates of Origin the same legal validity as paper certificates, supporting faster and more paperless trade between India and MERCOSUR countries.
The agreement was signed on September 14 in New Delhi by Commerce Secretary Rajesh Agarwal, Ambassador of Uruguay to India Alberto Guani, and Ambassador of Paraguay to India Fleming Raul Duarte Ramos.
The signing took place in the presence of Uruguay’s Foreign Affairs Minister Mario Lubetkin, representing Uruguay in its role as the Pro Tempore Presidency of MERCOSUR, along with representatives of the embassies of Argentina and Brazil.
The move is expected to make documentation easier for exporters and importers while reducing the time and costs involved in issuing and verifying Certificates of Origin.
Electronic Certificates to Get Same Legal Status
The First Additional Protocol amends Article 16 of Annex III on Rules of Origin under the India-MERCOSUR PTA.
Under the new provision, Certificates of Origin issued electronically will have the same legal validity and identical value as paper-based certificates.
The electronic certificates will have to comply with the domestic laws of the respective parties. They must also be issued and electronically signed by authorised entities and officials.
This change is expected to help businesses gradually shift towards digital trade documentation. It can reduce dependence on physical paperwork and simplify the verification process involved in claiming preferential tariff benefits.
For businesses engaged in India-MERCOSUR trade, the move could mean fewer administrative steps, lower documentation costs and quicker processing.
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Push Towards Paperless Trade
The agreement marks another step in the broader shift towards digital and paperless international trade.
Certificates of Origin are important trade documents because they establish the country where goods originate. They are particularly relevant when exporters seek preferential tariff treatment under a trade agreement.
By accepting electronic versions with the same legal status as physical certificates, India and MERCOSUR are creating a more streamlined framework for trade documentation.
The change is also expected to improve the efficiency of preferential trade under the existing India-MERCOSUR PTA.
India-MERCOSUR PTA Dates Back to 2004
The India-MERCOSUR Preferential Trade Agreement was signed on January 25, 2004, and came into force on June 1, 2009.
The agreement provides preferential tariff concessions covering 450 tariff lines from India and 452 tariff lines from the MERCOSUR side.
MERCOSUR is a major regional economic bloc in South America, with Argentina, Brazil, Paraguay and Uruguay among its key members. India’s engagement with the bloc has been aimed at strengthening trade and economic ties with the region.
The latest protocol builds on this existing institutional framework rather than creating a new trade agreement.
Decision Followed Two Rounds of Discussions
The move towards electronic Certificates of Origin followed discussions under the Joint Administrative Committee of the India-MERCOSUR PTA.
At the committee’s fourth meeting on November 27, 2025, India and MERCOSUR supported updating the agreement to facilitate the use of digital Certificates of Origin.
The proposal then moved forward at the fifth meeting of the Joint Administrative Committee held on April 9, 2026, where both sides adopted the proposal for the Additional Protocol by mutual consent.
The signing on September 14 now marks the formalisation of that decision.
Protocol Awaits Internal Procedures
The new protocol will not take effect immediately.
It will enter into force after India and the MERCOSUR parties complete their respective internal procedures and notify each other about their completion.
Once operational, the framework will provide a formal legal basis for accepting electronic Certificates of Origin under the India-MERCOSUR PTA.
The move is expected to support businesses by reducing the administrative burden associated with physical documentation while making the process of issuing and verifying certificates more efficient.
Strengthening India-MERCOSUR Economic Partnership
The protocol marks a step towards deeper India-MERCOSUR trade ties by promoting digital documentation, simpler customs processes and trade facilitation.
It is expected to reduce paperwork, transaction costs and processing time while supporting more efficient cross-border commerce and preferential trade.
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