Govt. Plans To Wrap Up Trade Agreement With Chile This Year, Pg10

Key Highlights:

• India aims to conclude a Comprehensive Economic Partnership Agreement (CEPA) with Chile by the end of this year.
• The negotiations for the CEPA began in May 2025, following the signing of the Terms of Reference on May 8, 2025.
• The agreement seeks to create a balanced and mutually beneficial framework for businesses in both countries.
• India's exports to Chile reached $1.2 billion in 2025-26, while imports from Chile stood at $5 billion, a 93% increase from the previous year.
• The discussions were held in Santiago, Chile, between Commerce Secretary Rajesh Agrawal and Chile’s Vice-Minister Paula Estévez Weinstein.

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Detailed Insights:

• The proposed CEPA aims to deepen the existing Preferential Trade Agreement (PTA) between India and Chile, which came into effect in 2007 and was expanded in 2017.
• Both nations, identifying as members of the Global South, share a common strategic vision for enhanced bilateral economic cooperation.
• Key sectors identified for increased cooperation include healthcare, pharmaceuticals, energy, minerals, agriculture, machinery, and engineering.
• Chile is a significant global producer of critical minerals such as lithium and copper, which are of strategic interest to India for securing supply chains.
• A CEPA goes beyond traditional trade agreements by encompassing a broader range of economic activities, including trade in services and investment.
• The agreement is expected to unlock commercially meaningful opportunities and foster deeper economic integration between the two countries.

Key Concepts Involved:

• Comprehensive Economic Partnership Agreement (CEPA): A broad-based trade agreement covering goods, services, investment, intellectual property, and regulatory cooperation, aiming for deeper economic integration.
• Preferential Trade Agreement (PTA): A trade agreement where member countries reduce tariffs on a limited range of goods, offering less integration than a Free Trade Agreement or CEPA.
• Global South: A term referring to developing and emerging countries, primarily in Asia, Africa, and Latin America, sharing common developmental and geopolitical concerns.