Govt finalizing scope of Chile trade deal

The Union commerce and industry ministry is finalizing the terms of reference (ToR) for a free trade deal with Chile, before the two nations start talks aimed at boosting bilateral economic ties, two people aware of the matter said.

The two sides aim to expand trading relations beyond agriculture and goods, to include digital services and investment under the deal, a Comprehensive Economic Partnership Agreement (CEPA), they said.

This comes in the backdrop of India trying to secure lithium mines in Chile. Both countries signed a preferential trade agreement (PTA) in 2005, which is a limited trade pact.

Given that India is aiming to explore new markets to diversify its exports, the finalization of the ToR will help in moving ahead with negotiations with Chile, thereby allowing India to gain greater access to the South American region, one of the persons cited above said.

Terms of reference refer to the purpose and structures of a negotiation agreed to work together to accomplish a shared goal.

The talks are likely to start in a few months after the new government is formed at the Centre.

Queries sent to spokespersons of the commerce ministry and Chilean Embassy remained unanswered till press time.

According to the commerce ministry’s Niryat portal, exports to Chile stood at $1.10 billion till February 2024, which represents a marginal increase from $1.06 billion in the corresponding months of the previous fiscal year (2022-23). Total imports from the South American nation amounted to $1.27 billion till April-January 2024.

The two sides aim to expand trading relations beyond agriculture and goods, to include digital services and investment