India, Chile Conclude Fourth Round Of Trade Talks

India and South American nation Chile on Friday in New Delhi concluded the fourth round of negotiations for the proposed comprehensive economic partnership agreement (CEPA), an official said.

During the five-day talks, the official said, both sides held constructive and solutions-oriented discussions that resulted in substantial progress across the chapters in the agreement, with a majority of chapters nearing conclusion.

The round witnessed broad convergence on key textual elements, improved clarity on pending proposals and steady movement in areas requiring deeper technical engagement, the official said.

"The outcomes of this round strengthen the pathway for concluding the remaining elements in the upcoming rounds and underscore the joint resolve of both countries to deliver a comprehensive and mutually beneficial agreement in the next few months," the official added.

The pact with the South American nation may help India access critical minerals, which are key inputs for electronics, auto, and solar sectors. India is seeking preferential treatment for critical minerals in Chile under the pact.

Critical minerals, such as cobalt, copper, lithium, nickel and rare earths, play a crucial role in the production of clean energy technologies, from wind turbines to electric cars.

Such minerals are in demand for the production of batteries for electric cars. The government has successfully auctioned 14 critical mineral mines.

India and Chile implemented a preferential trade agreement (PTA) in 2006 and are now negotiating to widen its scope for a comprehensive economic partnership agreement.

CEPA aims to build upon the existing PTA between the two nations and seeks to encompass a broader range of sectors, including digital services, investment promotion and cooperation, MSMEs (micro, small and medium enterprises), and critical minerals.

The bilateral trade between India and Chile is modest. In 2024-25, India's exports to Chile were down 2.46% to just USD 1.15 billion. Imports, however, grew 72% to USD 2.60 billion.

The largest Indian exports to Chile are auto and pharma. The biggest imports from Chile are minerals worth around USD 1.58 billion. Other products imported from Chile are copper and chemicals.

Chile is the fifth-largest trading partner of India in the LAC (Latin American countries) region.

India's exports to Chile are diversified and constitute motor vehicles/cars, drug formulations, chemicals, iron and steel products, man-made yarn, fabrics, cotton fabrics, made-ups, RMG (ready-made garments), auto components, electric machinery and equipment, leather goods, rubber products, aluminium and its products, and ceramics.