Paraguayan President sees South America as next big India trade deal partner

Paraguayan President Santiago Pena has said South America, led by the MERCOSUR (Southern Common Market) trade bloc, could be the next major partner in India’s expanding global trade network. Speaking on the sidelines of World Governments Summit in Dubai on Tuesday, Pena praised the recent India-US trade deal and backed deeper economic ties with New Delhi.

Pena, a rare Latin American leader seen as close to former US President Donald Trump and one of the continent’s most vocal supporters of the Republican, praised the India–US trade agreement as “a dream come true”. Pena underlined his belief that broader cooperation between India and South American nations could unlock significant economic potential.

“Today, we see three big trade deals shaping global commerce — the India-US agreement, the India-EU engagement, and what we hope will be an India-MERCOSUR partnership,” Pena said, referring to the Southern Common Market comprising Argentina, Brazil, Paraguay and Uruguay, which was established in 1991 to encourage regional trade and integration.

PRAISES INDIA-US DEAL

On the India–US agreement, Pena said the outcome demonstrated how strong personal relationships and shared strategic interests could produce “great deals for all of us”.

He said the benefits of closer ties with both Washington and New Delhi went beyond trade figures. “This is a great deal a dream realised,” he said, praising the role of Prime Minister Narendra Modi's leadership in achieving it.

BACK SOVEREIGNTY, OPPOSE DICTATORS

Commenting upon the US capture of former Venezuelan President Nicolas Maduro, Pena said his government supported national sovereignty but not dictatorial rule in the region.

“We believe in respecting sovereignty and democratic rule, but we cannot support dictators or regimes that undermine the rights of their people,” he said.

EYES ON SOUTH AMERICA

Pea suggested that South America, under the framework of MERCOSUR, could be India’s next significant trading partner after Washington and Europe. “We see enormous potential to strengthen economic linkages with India through MERCOSUR,” Pena said, pointing to expanding market access and deeper tariff concessions.

India and the South American bloc have long had a Preferential Trade Agreement (PTA) in place, operational since June 2009, which reduces tariffs on over 4,500 products to boost commerce. Negotiations are underway to expand the pact’s product coverage and deepen concessions, with the aim of eventually transforming it into a full-fledged free trade agreement (FTA).