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Minister of State for Commerce and Industry, Shri Jyotiraditya M Scindia emphasized the need to deepen engagement with Latin America by expanding the existing PTA with MERCOSUR. Since Uruguay will be the next President of the MERCOSUR bloc. “It is important that the leaders on both sides proactively take steps to expedite completion of the process for expansion of the PTA”, Shri Scindia said. He was speaking at a business seminar at Montevideo, Uruguay late last night. Shri Jyotiraditya Scindia who chairs a committee to promote trade and investment with Latin America, reached Uruguay in the second leg of his Latin American Tour after successful visit to Brazil.

The Minister highlighted the complementarities and similarities between India and Uruguay. He elaborated upon India’s growth story, especially in the sectors of Telecom, Human skills, India´s demographic dividend and trade. He invited businessmen and entrepreneurs from Uruguay to come to India and explore the opportunities available there, especially in the agricultural sector. Agribusiness is well organized in Uruguay with mechanization and outsourcing. Every hectare of land has been satellite mapped and soil condition and productivity documented. India can contribute in Pharmaceutical and Drugs, Engineering and machinery and IT. Uruguay Trade Minister Mr Roberto Kreimerman was also present.

During his meeting with the Uruguay Foreign Minister Mr Luis Leonardo Almagro Lemas, Shri Scindia said that the trade between the two countries needs to touch the USD 1 billion mark from Current levels of USD 110 million. He said “there is tremendous possibility for bilateral cooperation and we need to deepen engagement at the institutional level and expand the strategic relationship.” In this connection he identified that Double Tax Avoidance Agreement (DTAA), Bilateral Investment Promotion and Protection Agreement (BIPA) as critical future steps. He pointed out that Indian investments into Uruguay can flow into sectors - Agriculture, Creation of Montevideo and Uruguay as a trading hub for Latin America, Oil and gas. He raised the issue of visas for Indian businessmen travelling to Uruguay. Currently it is very difficult and time consuming. In contrast India issues 5 year visas for multiple entries to Uruguayan businessmen. The Uruguay Minister assured to find a solution to the visa issue.

Minister of Uruguay raised the issue of a joint commission for trade between India and Uruguay to sort out issues. It could meet annually or once in 2 years. He underlined the need for an Indian Embassy in Uruguay for dealing with the enhanced interaction.

Shri Scindia visited the bonded warehouse owned by GRUPORAS. It is the no.1 logistics company in MERCOSUR with facilities to provide access to 7 countries in LAC. They export 60% of the total goods received to other countries, of this 40% is destined for Brazil alone. The Chairman, Rubin Azar took Shri Scindia around the warehouse for a tour followed by a presentation on the activities of their company. Mr.Azar expressed his interest to increase trade linkages with India. Currently companies like Reliance, TVS, Kirloskar, Hero Electric, among others are using their warehouse facilities. They have also set up a showroom for display of products for potential buyers from the MERCOSUR region.

During April- December 2010 Indian Export were USD 67.25 million registering a growth of 87.72% Imports from Uruguay were USD 13 million for the same period.

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DS/GK
(Release ID :71917)