India and Latin American and the Caribbean can mutually benefit from closer trade ties and must work together to reduce trade costs and eliminate barriers, according to a study presented during an event today organized by the Global Development Network (GDN) and other international organizations.
Both regions can benefit from growing trade and cooperation because their economies have a great level of complementarity and face similar challenges on how to meet demand from their vast low- and middle-income populations, according to the study.
Currently, India represents just 1 percent of this region’s overall trade, compared with China’s 10 percent share.
In order to boost trade, both India and Latin America must lower tariffs and trade barriers, the study concludes. India’s average tariff on Latin American agricultural goods is 65 percent, more than five times China’s 12.5 percent tariff.