India and Chile strengthen ties, focus on trade, minerals, and defence cooperation

Discussions aim to advance bilateral agreements, including a potential comprehensive economic partnership

August 28, 2024

Chile expressed a keen interest in advancing trade relations with India and accelerating negotiations for a Comprehensive Economic Partnership Agreement (CEPA)

India acknowledged Chile’s participation in the Voice of Global South Summits and commended President Gabriel Boric for his contributions

India appreciated Chile's support for its bid for permanent membership in an expanded UN Security Council

India and Chile have a longstanding trade relationship, marked by a Preferential Trade Agreement (PTA) since 2006, which was expanded in 2017

India’s Minister of External Affairs, S. Jaishankar, and Chilean Foreign Minister Alberto Van Klaveren, who is on an official visit to India, explored various areas of bilateral cooperation, including trade, investment, critical minerals, agriculture, and defence during the second India-Chile Joint Commission meeting. Klaveren emphasised Chile’s strong interest in deepening trade relations with India and accelerating negotiations on the proposed India-Chile Comprehensive Economic Partnership Agreement (CEPA).

Jaishankar noted that the meeting was “productive and wide-ranging,” covering multiple sectors like railways, health, space, culture, and people-to-people ties. Both sides also exchanged views on global hotspots and regional developments to bolster their cooperation on international issues.

India praised Chile for its participation in the Voice of Global South Summits, highlighting the insightful remarks made by Chilean President Gabriel Boric at the third summit held on 17 August. Additionally, India expressed gratitude for Chile’s support of its permanent membership in an expanded United Nations Security Council. It welcomed Chile’s active participation in the Trade and Economic Ministers meeting scheduled for November 2023.

India and Chile first established a Preferential Trade Agreement (PTA) in 2006, which was implemented in 2007. The agreement initially covered a limited range of items. It was expanded in 2017, granting tariff preferences on 1,110 Chilean products. The two nations are now considering a more comprehensive economic partnership to broaden the existing trade framework.

Chile remains an important trade partner for India in Latin America, with bilateral trade reaching $2.7 billion in 2023-24. Beyond copper and lithium, Chile is a key supplier of other critical exports to India. As both countries seek to enhance their economic ties, the potential Comprehensive Economic Partnership Agreement (CEPA) is expected to strengthen their trade relationship further.

Source: Hindu Businessline

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