India, Chile to hold fourth round of FTA talks next month, Pg15

Key Highlights:

• India and Chile will hold the fourth round of FTA negotiations next month in India.
• The previous round of talks occurred in Santiago, Chile from October 27-30.
• India and Peru held the ninth round of trade negotiations from November 3-5 in Lima and plan to meet again in New Delhi in January 2026.
• The proposed agreements include a chapter on critical minerals to secure long-term supplies for clean-tech and advanced manufacturing.
• In 2024-25, India's exports to Chile totaled $1.15 billion against imports of $2.60 billion.

Detailed Insights:

• India is prioritizing the inclusion of critical minerals chapters in trade agreements due to concerns about supply security, especially given export controls from China.
• Chile is the top copper reserve holder and a major lithium supplier, while Peru holds the world's second-largest silver reserves and is rich in copper and molybdenum.
• The Comprehensive Economic Partnership Agreement (CEPA) talks with Chile cover trade in goods and services, investment promotion, rules of origin, intellectual property, economic cooperation, and the minerals chapter.
• India's exports to Peru include automobiles, pharmaceuticals, metals, and plastics, while imports are led by gold, copper, and synthetic filaments.
• Peru is India's larger South American trade partner with India exporting $1.02 billion to Peru and importing $4.98 billion in 2024-25.

Key Concepts Involved:

• FTA (Free Trade Agreement): An agreement between two or more countries to reduce or eliminate trade barriers.
• Critical Minerals: Minerals essential for modern technologies and industries, with supply chain vulnerabilities.
• Comprehensive Economic Partnership Agreement (CEPA): A type of free trade agreement that covers a wider range of economic activities.