(MENAFN- IANS) New Delhi, Oct 26 (IANS) India and Brazil are strengthening trade, investment and energy ties as part of the BRICS bloc, a move that is expected to boost the negotiating power of the Global South at a time when the turmoil over US tariffs has increased uncertainty in global trade.

The two countries have decided to go in for a substantial expansion of the agreement between India and MERCOSUR member states, aiming for a significant share of the bilateral trade to benefit from tariff preferences, according to a joint statement issued after a meeting held here between the Vice President of Brazil, Geraldo Alckmin, and India's Minister of Commerce and Industry, Piyush Goyal.

The agreement between India and MERCOSUR -- comprising Brazil, Argentina, Bolivia, Paraguay, and Uruguay -- was signed on June 17, 2003 with the aim of strengthening relations and promoting the expansion of trade.

According to the joint statement, the expansion of the agreement should cover both tariff and non-tariff issues related to trade and economic partnership.

“Analysts say the push is not just about shielding their economies from punitive US tariffs, but also about asserting influence on multilateral issues ranging from energy security to global climate policy,” according to an article in the South China Morning Post's publication This Week in Asia.

Brazil is India's largest trade partner in South America, and the two countries agreed to raise bilateral trade to $20 billion by 2030 from $12 billion last year.

“This is a partnership of weight and complementarity. There is a reason to be together because their interests coincide, but it is also in the interest of humankind,” Manjeev Puri, India's former ambassador to the European Union, told This Week in Asia.

Both countries were strong advocates for protecting the interests of developing nations in the Global South, he said.

Brazil has helped the Global South by raising issues such as food security and health at multilateral forums including BRICS and G20, while India has provided digital infrastructure sharing, humanitarian aid and supported the inclusion of the African Union into the G20.

Besides being founding members of BRICS-a bloc of major emerging national economies that includes Russia, China and South Africa-India and Brazil are also part of a trilateral grouping called the India-Brazil-South Africa Dialogue Forum that seeks to promote cooperation in various sectors.

“It is in our national interest that we will be with Brazil, no matter that there are strong headwinds from the US in particular,” Puri said.

Experts say there are several possible areas for deeper bilateral cooperation. Brazil's pioneering efforts in developing sugar cane-based biofuels could be important for India's own push to increase use of ethanol to trim crude oil imports, which have historically been the biggest drag on its foreign exchange, Puri noted.

Aviation could be another sector, experts say. Brazilian aerospace major Embraer inaugurated its office in Delhi to strengthen its presence in India's commercial aviation sector. The Indian Air Force and the commercial airline Star Air already use Embraer aircraft.

Brazil's Vice President also met Petroleum Minister Hardeep Singh Puri.

“Was pleased to meet Geraldo Alckmin, Vice President and Minister of Development, Industry, Trade and Services of Brazil, during his visit to India. Our conversation focused on the expanding energy partnership between India and Brazil, from robust bilateral trade in hydrocarbons and long-term crude supply contracts with Petrobras to Indian investments worth over USD 3.5 billion in Brazil's upstream sector, making it India's largest investment destination in the Americas,” Puri said after the meeting.

The minister further stated that discussions also took place on opportunities for collaboration in exploration and production, India's participation in upcoming offshore projects, and mutual prospects in deep and ultra-deepwater activities.

Alckmin also held a meeting with Defence Minister Rajnath Singh. Brazilian Defence Minister Jose Mucio Monteiro Filho was also present during the interaction.

India and Brazil share a strategic partnership. The leaders reviewed the entire range of multifaceted relations in the defence sector between the two countries.

They also exchanged views on areas of mutual interest covering military-to-military and defence industrial cooperation, including joint exercises and training visits.

“The leaders reviewed the progress of ongoing defence-related initiatives and identified priority areas for joint work, including exploring opportunities for co-development and co-production of defence equipment,” the Ministry of Defence said in a statement.

-IANS

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