India, Brazil ink pacts on minerals, steel mining; agree to step up trade, Pg8

Key Highlights:

• India and Brazil signed agreements for cooperation in rare earth minerals, critical minerals, and steel mining.
• Both countries aim to enhance trade beyond $20 billion by 2030 and expand the India-Mercosur Preferential Trading Agreement.
• A joint declaration and action plan on a digital partnership was launched.
• Brazil is India’s biggest trading partner.

Detailed Insights:

• The agreement on critical minerals aims to diversify supply chains away from China.
• India and Brazil are increasing cooperation on the biofuel alliance announced in 2023 along with the U.S.
• Both countries are regional hubs that defend multilateralism and peace.
• India and Brazil should aim for a more ambitious trade target of $30 billion annually by 2030.
• The leaders discussed trade and tariff developments in the U.S. and agreed to study the implications.
• India and Brazil also face the threat of higher U.S. tariffs over their BRICS membership.
• The two leaders agreed to strengthen ties in defence, energy, healthcare, agriculture, and pharmaceuticals.

Key Concepts Involved:

• Rare Earth Minerals: A set of seventeen metallic elements that are vital in many modern technologies.
• Critical Minerals: Minerals essential to modern technologies and at risk of supply disruption.
• Mercosur: A South American trade bloc established in 1991 to promote free trade and the fluid movement of goods, people, and currency.
• Multilateralism: The principle of organizing relations between three or more states based on certain principles.