Trilateral trade b/w IBSA in PM's Brazil trip

New Delhi, Sept 1: An agreement between India, Mercosur and the South African Customs Union (SACU), which is likely to boost trilateral trade among India, Brazil and South Africa (IBSA), will figure on the agenda during Prime Minister Manmohan Singh's visit to Brasilia later this month, a senior official said here today.

The IBSA axis, formed after the Cancun talks of the World Trade Organisation in 2003, aims to foster closer political, economic and cultural ties between the three countries.

A free trade agreement between the three may not be possible because Brazil is signatory to the Latin American free trade agreement (FTA) Mercosur and South Africa to the SACU.

Addressing a seminar on 'Economic Cooperation in IBSA: Exploiting Synergies' organised by the industry chamber CII, Ministry of Commerce and Industry Joint Secretary Jayant Dasgupta said much work had to be done in order to realise the potential of IBSA. ''The customs authorities of the three countries have to align their procedures in order to reduce barriers to trade and business.

''Small and medium enterprises are an important part of the economy in all three countries. Their governments need to promote SMEs in IBSA. India can negotiate a preferential trade agreement with South Africa, as it has already one with Brazil in place.

Another agreement between Mercosur and SACU is being worked out,'' Mr Dasgupta said.

Brazilian Ambassador Jose Vicente De Sa Pimental said ties between Brazil, India and South Africa are relatively new and still tenuous.

''Brazil has identified the challenges in improving the ties and will work on them.

''The three countries need more inter-personal exchange and more people-to-people contact,'' the Ambassador said, adding, ''Prime Minister's visit will go a long way to foster such ties.'' ''IBSA has worked to change the minds of those want status quo in multilateral negotiations,'' Ministry of External Affairs Joint Secretary R Vishwanathan said.

UNI