Latest news with #MERCOSUR
Express Tribune
2 days ago
- Business
- Express Tribune
Canada pushes Mercosur talks to diversify global trade
Ecuador's Vice President Maria Jose Pinto, Paraguayan President Santiago Pena, Panama's President Jose Raul Mulino, Brazilian President Luis Inazio Lula da Silva, Argentine President Javier Milei, Bolivian President Luis Arce and Uruguayan President Yamandu Orsi pose for a family photo at the Summit of Presidents of MERCOSUR, in Buenos Aires, Argentina (Photo: Reuters) Canada's International Trade Minister said on Thursday that there was interest from both sides to advance trade talks with the South American bloc Mercosur, as Ottawa seeks new deals in a push to diversify from the US. Prime Minister Mark Carney and his team have been locked in talks with US President Donald Trump to hash out a trade deal by August 1, which could help reduce tariffs on Canada. But his government is also preparing to rely less on a relationship that generated bilateral trade of over C$1 trillion ($727.33 billion) last year and to focus on diversifying trade by signing free trade pacts globally. "I had conversations with the foreign minister of Brazil, and there is an appetite to carry out conversations around Mercosur," Minister Maninder Sidhu said in an interview with Reuters. Brazilian President Luiz Inacio Lula da Silva had said in April that he was interested in advancing talks for a trade deal between South America's Mercosur bloc and Canada. Mercosur - which includes Brazil, Argentina, Paraguay and Uruguay - has had negotiation rounds for a trade deal with Canada in the past. Canada is also keen to continue talks with China to address trade challenges and views a thawing of relations between India and Canada as an important step to support trade, the Minister said. "With China, there are opportunities, there are challenges," he said, adding that the countries are holding frank discussions on a path forward on trade tariffs around exports of canola, beef, pet food and many other products. Canada has 15 free-trade deals covering 51 countries, giving it access to 1.5 billion consumers and Sidhu said that Ottawa will be pursuing more such deals in the coming months without giving a specific target. He had signed a free trade deal with Ecuador and an investment promotion pact with the UAE in his first two months in office and said discussions are on with the ASEAN countries and also individually with countries in the Indo-Pacific, including Indonesia and the Philippines. Sidhu said Canadian companies are over-exposed to the US and they are not as competitive as they used to be due to Trump's tariffs. "My job is to be out there opening doors," he said, adding that he would seek to diversify not only trade but Canada's defense procurements from the U.S. Carney has promised to increase defense spending by an additional C$9 billion this year to meet NATO's target of spending 2% of GDP. "We are working with the European Union and other partners around the world to help unlock some of those procurement opportunities in defense for our Canadian companies," he said. Canadian exports to the US dropped in May to 68% of total exports from a monthly average of 75% last year. The US share in May was the lowest on record as companies pushed to diversify from the US. He did not respond directly on what a trade deal between Canada and the US would look like, but said the government would "work towards a deal that's best for Canadian businesses and Canadian workers."
Straits Times
10-07-2025
- Business
- Straits Times
Argentina Congress passes pension boost despite Milei opposition
Sign up now: Get ST's newsletters delivered to your inbox FILE PHOTO: Argentine President Javier Milei poses for a family photo at the Summit of Presidents of MERCOSUR, in Buenos Aires, Argentina, July 3, 2025. REUTERS/Alessia Maccioni/File Photo BUENOS AIRES - Argentine lawmakers on Thursday passed a motion to boost pensions that the government of libertarian President Javier Milei had heavily criticized out of concerns that it would threaten the state's fiscal surplus. The opposition-controlled Senate backed the pension reform, with 52 votes in favor and four abstentions. The lower chamber of congress had already passed the bill. Milei has vowed to veto a hike in pensions and already did so in a similar move last year. Since taking office, he's slashed public spending in a bid to wrangle inflation under control, though the austerity drive has also hit workers. Retirees have launched weekly protests in capital Buenos Aires to demand adjustments to their pension payments, occasionally facing off with police. REUTERS
Time of India
06-07-2025
- Business
- Time of India
LatAm pivot
Times of India's Edit Page team comprises senior journalists with wide-ranging interests who debate and opine on the news and issues of the day. India must shed its protectionist mindset and trade more with resource-rich South America That Modi's ongoing five-nation tour includes Argentina and Brazil isn't a trivia. These two key South American nations can be important fulcrums of a potential Indian pivot to the continent. While India-South America trade has been steadily growing, it's far below potential. This has much to do with our unambitious approach to the region. True, India has a preferential trade agreement (PTA) with MERCOSUR bloc that includes Brazil, Argentina, Uruguay, Paraguay and Bolivia. The idea was that the PTA would be gradually expanded and upgraded to a free trade agreement (FTA). However, progress has been really slow and India's exports to Latin America in FY2025 stood at just $15.17bn – less than 2% of the region's total imports. But trade is back on the agenda during Modi's visits, and rightly so. While one still hopes that an India-US trade deal can be clinched, New Delhi must be prepared for all eventualities. And with Trump keen on using tariffs as a strategic weapon to achieve geopolitical goals – take the Lindsey Graham-proposed bill to hit countries buying Russian oil with 500% tariff – India must diversify its trade relations. South America is a natural resources powerhouse. With vast deposits of oil, gas, copper, lithium, rare earths etc it can power India's industrial growth, advance critical sectors like EV batteries, and bolster food security. The key for GOI would be to expand its diplomatic bandwidth and take a courageous approach to trade. We must cast away the protectionist mindset and be ready to compete. That's the only way beneficial FTAs can be worked out. Vietnam, which recently worked out a trade deal with US, has been following precisely this strategy, having inked 20 FTAs, with 16 already implemented. China already has a huge presence in Latin America. So, the latter is looking for balance. This is the perfect time for India to step up. Facebook Twitter Linkedin Email This piece appeared as an editorial opinion in the print edition of The Times of India.
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First Post
06-07-2025
- Business
- First Post
Modi-Milei talks in Buenos Aires: India, Argentina to boost ties with diversification in trade
India and Argentina have decided to boost ties and work together in areas like minerals, defence, space, energy, pharmaceuticals, and digital payments. The decision came after Prime Minister Narendra Modi met President Javier Milei in Buenos Aires during the first bilateral visit by an Indian Prime Minister to Argentina in 57 years. read more Modi-Milei talks in Buenos Aires: India, Argentina to boost ties with diversification in trade. Image: X India and Argentina have agreed to deepen cooperation in key sectors such as critical minerals, defence manufacturing, space, shale gas, pharmaceuticals, digital health, telemedicine, information technology, and digital payments. The agreement came after wide-ranging talks between Prime Minister Narendra Modi and President Javier Milei in Buenos Aires on Saturday night. This marks the first bilateral visit by an Indian Prime Minister to Argentina in 57 years. Modi had previously visited the country in 2018 for the G20 Summit. He arrived in Buenos Aires earlier in the day and received a ceremonial welcome at Ezeiza International Airport. STORY CONTINUES BELOW THIS AD The two leaders held delegation-level talks after Modi paid tribute to General Jose de San Martin, Argentina's national hero. President Milei then hosted a lunch in his honour. Officials said the two sides agreed to set up a joint working group on agriculture and explore cooperation in drones and defence manufacturing. India also offered to support the maintenance of Argentina's military helicopter fleet and proposed several military platforms. In trade, Modi called for Argentina's support to expand the India-MERCOSUR trade agreement. MERCOSUR is a South American trade bloc comprising Argentina, Brazil, Paraguay, and Uruguay. India also pushed for greater market access for its pharmaceutical products, suggesting a regulatory upgrade from Annex II to Annex I in Argentina's pharma classification system to ease entry. Argentina, in turn, briefed the Indian side on its fast-track approval system for Indian medicines. Digital cooperation was another key focus, with Modi highlighting the success of India's Unified Payments Interface (UPI). President Milei expressed strong interest in adopting UPI, especially in terms of how it could help Argentina's central bank manage monetary policy more effectively. The two leaders also reviewed progress on cooperation in critical minerals like lithium—essential for India's clean energy goals. A memorandum of understanding (MoU) was signed in August 2022, and the first joint working group meeting under this MoU took place in January. India and Argentina elevated their relationship to a strategic partnership in 2019 during the visit of then-President Mauricio Macri to India. STORY CONTINUES BELOW THIS AD Bilateral trade between the two countries has been growing steadily. Trade volume more than doubled from 2019 to 2022, peaking at $6.4 billion. In 2024, the total trade stood at $5.23 billion, making India Argentina's fifth-largest trading partner. Following the talks, Modi received the Key to the City of Buenos Aires from Mayor Jorge Macri. In a post on X, Prime Minister Modi said, 'Excellent meeting with President Javier Milei of Argentina. We are marking 75 years of India-Argentina diplomatic relations and 5 years since we elevated our relationship to a Strategic Partnership. We have covered significant ground, but we agree the journey ahead is even more promising!'
NDTV
05-07-2025
- Business
- NDTV
PM Modi, Argentine President Agree To Diversify Bilateral Trade Basket
Buenos Aires: Prime Minister Narendra Modi and Argentine President Javier Milei on Saturday agreed to diversify India-Argentina trade basket and vowed to expand cooperation in a range of critical areas such as defence, security, energy and minerals. In their wide-ranging talks, the two leaders emphasised on boosting defence cooperation between the two countries as it will serve each other's strategic interests. PM Modi arrived in Buenos Aires on Friday on a two-day trip in the third leg of his five-nation tour. Though PM Modi visited Argentina in 2018 to attend the G20 Summit, it is the first bilateral visit to the South American country by an Indian prime minister after a gap of 57 years. In a social media post, PM Modi said he and President Milei discussed ways to diversify trade ties and enhance cooperation in sectors such as agriculture, defence, security and energy. "There is immense scope in areas like pharmaceuticals and sports as well," he said. The prime minister described his meeting with President Milei as "excellent". "We are marking 75 years of India-Argentina diplomatic relations and 5 years since we elevated our relationship to a Strategic Partnership. We have covered significant ground in our bilateral relations, but we agree that the journey ahead is even more promising," the prime minister posted on X. Secretary (East) in the Ministry of External Affairs Periasamy Kumaran said the two leaders agreed to enhance India-Argentina collaboration across a range of sectors, including trade and commerce, technology, defence, space, health and pharmaceuticals. PM Modi and President Milei also agreed to further deepen the strategic partnership, he said adding they discussed the necessity to expand and diversify trade. At a press conference, Kumaran said Prime Minister Modi sought Argentina's support in expanding the India-MERCOSUR trade agreement, noting that it could deepen trade ties between the two nations as well. The preferential trade agreement (PTA) is aimed at expanding economic ties between India and the MERCOSUR bloc that includes Argentina, Brazil, Paraguay, and Uruguay. PM Modi and President Milei also underlined the need to enhance access for agricultural products in each other's markets and issued instructions to respective officials to set up a joint working group on agriculture. The relationship between the two countries was elevated to strategic partnership during the visit to India of the then Argentine President Mauricio Macri in February 2019. The two sides have been cooperating in several key areas such as trade, defence, critical minerals, oil and gas, nuclear energy, agriculture, culture and technology. India and Argentina have significant cooperation in the mineral resources sector, particularly in lithium -- a critical input for India's green energy transition. An MoU on cooperation in the field of mineral resources was signed in August 2022. The first meeting of the joint working group set up under the framework of the MoU was held in January. The India-Argentina bilateral trade has been on an upswing. The trade volume more than doubled in three years from 2019 to 2022, peaking at USD 6.4 billion in 2022. In 2021 and 2022, India was Argentina's fourth largest trading partner. In 2024, total annual bilateral trade between India and Argentina was USD 5.23 billion, positioning India as Argentina's fifth-largest trading partner and export destination.
