India, Chile To Expand Free Trade Deal Under CEPA: PM Modi
The expansion of the deal comes as Chilean President Gabriel Boric Font is visiting India from April 1-5.
India and Chile are set to expand their trade deal to a Comprehensive Economic Partnership Agreement, making it the first Latin American country to have such a deal with New Delhi.
The expansion of the deal comes as Chilean President Gabriel Boric Font is visiting India from April 1-5. The current preferential trade agreement will be upgraded to a full free trade agreement.
"Leaders of both countries have given the nod to our officials to resume negotiations for trade deal as part of CEPA," Prime Minister Narendra Modi said in a joint press statement on Tuesday.
India is seeing Chile as a "gateway to Antarctica" and major areas of focus will be around critical minerals, agriculture, digital public infrastructure, railways and space, he added.
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India and Chile have an existing relationship, with a PTA being signed in 2005. It was expanded from 178 tariff lines to 1,000 lines in 2017, and will now be pushed further as part of the CEPA.
In March, speaking at the 10th CII India-Latin America Caribbean Conclave, Union Commerce Minister Piyush Goyal had underscored the need for expedited decision-making with regards to negotiations with Latin American countries.
"Agreements that are long drawn, negotiated over 10-20 rounds, can never get fructified into solid partnerships," he had remarked. India currently enjoys a $45 billion bilateral trade relationship with Latin America, but Goyal had added that this is far from its potential. He outlined an ambitious vision to push trade volumes to $100-$200 billion in the coming years, highlighting opportunities in critical minerals, services, tourism, horticulture, and gems and jewellery.
