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5mo ago

India and Chile Sign Terms for Comprehensive Trade Pact

The agreement sets the stage for negotiations on a broader economic partnership focusing on critical minerals, digital trade, and investment, with talks starting May 26 in New Delhi.

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India and Chile reiterated their shared vision for strengthening bilateral relations and look forward to fruitful discussion during the first round of talks during May 26-30, the commerce ministry said in a statement (X/narendramodi)

Overview

  • India and Chile have signed the terms of reference for a Comprehensive Economic Partnership Agreement (CEPA), expanding their trade framework beyond the existing preferential trade agreement.
  • The CEPA will cover new sectors, including digital services, investment promotion, MSMEs, and critical minerals, critical for India's industrial and energy goals.
  • The first round of negotiations is scheduled for May 26–30 in New Delhi, with both nations aiming to fast-track the deal ahead of a US tariff suspension deadline in early July.
  • Bilateral merchandise trade between the two countries was $2.7 billion in 2023-24, with significant potential for growth driven by Chile's copper and lithium reserves.
  • The agreement builds on two decades of economic cooperation, including a 2005 framework agreement and successive preferential trade agreements in 2006, 2016, and 2019.