Uruguay Trade With India Talks Open as Exports Stay Under US$100 Million
URUGUAY · TRADE
Key Facts
- —What happened India’s first resident ambassador to Uruguay said trade between the two countries is far below its potential.
- —The context The Mercosur-India PTA, signed 2004 and effective 2009, covers 450-452 product lines and has not lifted trade as hoped.
- —Why it matters Uruguay exported US$93 million of goods to India in 2024, mostly raw logs, while buying about US$230 million.
- —The catch The 14 September 2026 talks only widen that deal, so current tariffs and the short product list still apply.
- —Who it affects Uruguayan wood, farm and food exporters, plus investors in forestry and farmland, and consumers of Indian goods.
- —What comes next Negotiators must finish Terms of Reference, with no rounds dated and Mercosur aiming for about 3,000 products.
India’s first resident ambassador in Montevideo says the old Mercosur tariff deal has held trade back. Talks to widen it opened on 14 September 2026.
Uruguay trade with India is still far below what it could be, India’s new ambassador in Montevideo said this week. Binoy George made the point in an interview with the weekly Búsqueda, published on 18 September 2026.
What the ambassador said
George told Búsqueda that trade between the two countries has not yet reached its maximum potential. He said the India–Mercosur agreement needs new energy because it has not produced the expected rise in trade.
George said uncertainty in the world has grown over the last three or four years. That, in his view, makes secure supply chains a priority for India.
He also argued that distance is not the main barrier. As proof, he pointed to Uruguay’s large trade with China, which is just as far away.
George presented his credentials to President Yamandú Orsi on Monday, 7 September 2026. He is the first resident ambassador India has posted to Uruguay.
Foreign Minister Mario Lubetkin called the new embassy historic. Orsi plans to visit India in 2027, according to Lubetkin.
Uruguay trade with India in numbers
Uruguay XXI, the state export and investment agency, publishes a country report on India based on customs data. It shows Uruguay exported US$93 million of goods to India in 2024.
That was about six times the level before the pandemic. Búsqueda reported that exports stayed below US$100 million in 2025.
The flow is lopsided. Uruguay bought about US$230 million of Indian goods in 2024, close to its ten-year average.
Wood and wood products made up 79% of Uruguay’s sales to India, mostly raw logs. Unprocessed barley added 9%, and wool and fabrics 4%.
Fuels led the goods Uruguay bought from India, at 29.8% of the total. Vehicles and car parts came next with 17%, then organic chemicals with 10.9%.
Why the old tariff deal matters
The Mercosur–India Preferential Trade Agreement (PTA) was signed in January 2004 and took effect on 1 June 2009. A PTA cuts tariffs only on a fixed list of goods.
That list is short. India gives tariff cuts on 450 product lines, and Mercosur gives cuts on 452.
Uruguay XXI says Uruguayan exporters paid US$3.9 million in Indian tariffs in 2023. Almost all of it fell on wood.
Uruguay XXI notes that Uruguay’s imports from India hovered around US$200 million a year before the pandemic. Sales the other way were far smaller until 2020.
Mercosur is the South American trade bloc that includes Brazil, Argentina, Uruguay, Paraguay and Bolivia. Uruguay currently holds its rotating chair.
What was agreed in New Delhi
On 14 September 2026, Lubetkin and India’s commerce minister, Piyush Goyal, announced the launch of talks to expand the PTA. Their joint statement said the deal would cover new areas of mutual interest.
The statement said both sides are still finalising the Terms of Reference. That document will set the scope and structure of a wider agreement.
The Spanish news agency EFE reported that Mercosur wants to raise the list to about 3,000 products. Lubetkin told EFE the goal is something close to a free trade area.
During the same trip, Lubetkin also met India’s foreign minister, S. Jaishankar. They agreed a 12-month work plan on political, trade and cultural ties, El Observador reported.
On 14 September, both sides also signed a protocol letting exporters use electronic certificates of origin. It takes effect only after each country finishes its internal approval steps.
On 18 September 2026, Agriculture Minister Alfredo Fratti and George signed a farm cooperation memorandum. It creates a joint working group and aims to widen tariff cuts for farm goods.
What this means for expats and investors
For now, nothing changes at the border. Current tariffs and the current short product list still apply.
If the talks succeed, Uruguayan meat, dairy, wine, fish, wool and wood could face lower Indian tariffs. Those sectors were named in the 18 September memorandum.
Investors in forestry and farmland should watch the product list closely. Wood is already Uruguay’s main sale to India, and farm goods are the stated next target.
For people living in Uruguay, cheaper Indian goods such as medicines, textiles or car parts are possible later. That depends on what Mercosur offers India in return.
Paperless certificates of origin should cut some delay and cost for traders once in force. Companies already trading with India would feel this first.
What is not yet known
No timetable for the talks has been published, and no negotiating round has been dated. The Terms of Reference are not yet public.
It is not known which products would join the list, or how deep the cuts would be. The 3,000-product target is Mercosur’s aim, not an agreed figure.
The start date for electronic certificates is also unknown. It depends on approvals in India and each Mercosur country.
The talks may take time, but both governments have now put the question formally on the table.
Frequently Asked Questions
Frequently Asked Questions
Did Uruguay and India sign a free trade agreement?
No. Mercosur and India only launched talks to widen their existing 2009 tariff deal, which covers a short list of goods.
How big is Uruguay trade with India?
Small. Uruguay exported US$93 million of goods to India in 2024 and imported about US$230 million, according to Uruguay XXI.
Does anything change for traders right now?
No. Tariffs are unchanged. The electronic certificate protocol starts only after all countries complete their approval steps.
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Sources: Búsqueda interview with Ambassador Binoy George, 18 September 2026; Uruguay Foreign Ministry joint statement, 14 September 2026; Uruguay XXI India country report 2025; India Ministry of Commerce via ANI/The Tribune; EFE; El Observador; la diaria.
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