India, Chile ink terms of reference for comprehensive free trade pact

New Delhi: India and Chile on Thursday signed terms of reference (ToRs) to negotiate a comprehensive free trade agreement. The two countries implemented a preferential trade agreement (PTA) in 2006 and are now planning to widen its scope for a comprehensive economic partnership agreement (CEPA).

An expanded PTA was subsequently signed in September 2016 and became effective from May 16, 2017. In April 2019, both countries agreed to pursue a further expansion of the PTA.

To deepen their economic engagement, both sides expressed their intention to negotiate a CEPA to unlock the full potential of their trade and commercial relationship, boosting employment, facilitating investment promotion, and cooperation and exports, the commerce ministry said.

The CEPA aims to build upon the existing PTA between the two nations and seeks to encompass a broader range of sectors, including digital services, investment promotion and cooperation, MSMEs, and critical minerals.

They emphasised the importance of enhancing the existing trade framework to unlock new opportunities for growth. In this spirit, the two leaders acknowledged the signing of the mutually agreed Terms of Reference (ToR) and welcomed the launch of negotiations for a CEPA, aiming to establish a balanced, ambitious, comprehensive, and mutually beneficial agreement for a deeper economic integration.

“India and Chile signed the ToR for a CEPA today, marking a significant advancement in their bilateral trade relations,” it said.

The mutually agreed ToR were duly signed by Juan Angulo, Ambassador of Chile in India and Vimal Anand, Joint Secretary, Department of Commerce, Ministry of Commerce & Industry, also the Chief Negotiator for India-Chile CEPA from the Indian side.