India And Chile Sign Terms Of Reference For Comprehensive Economic Partnership Agreement

(MENAFN- KNN India) New Delhi, May 9 (KNN) India and Chile have signed the Terms of Reference (ToR) for a Comprehensive Economic Partnership Agreement (CEPA) on May 8, 2025, marking a significant advancement in bilateral trade relations between the two nations.

The agreement was signed by H.E. Mr. Juan Angulo, Ambassador of Chile in India, and Vimal Anand, Joint Secretary at India's Department of Commerce and Chief Negotiator for the India-Chile CEPA.

Both countries reaffirmed their commitment to strengthening bilateral relations and expressed anticipation for productive discussions during the first round of negotiations scheduled for May 26-30, 2025, in New Delhi.

The proposed CEPA aims to expand upon the existing Preferential Trade Agreement (PTA) by incorporating a wider range of sectors, including digital services, investment promotion and cooperation, MSMEs, and critical minerals, thereby enhancing economic integration between the two countries.

India and Chile, which have maintained strategic partnership and close alliance over the years, have enjoyed warm and cordial relations that have steadily strengthened through high-level diplomatic exchanges.

The economic relationship between the two nations was formally established with the signing of a Framework Agreement on Economic Cooperation in January 2005, followed by a Preferential Trade Agreement in March 2006.

The economic ties were further strengthened with an expanded PTA signed in September 2016, which came into effect on May 16, 2017. In April 2019, both countries agreed to pursue additional expansions of the PTA, conducting three rounds of negotiations between 2019 and 2021.

A Joint Study Group established under the Framework Agreement recommended negotiating a CEPA to unlock the full potential of their trade relationship. The JSG report was finalised and signed on April 30, 2024.

This shared economic vision was reaffirmed during Chilean President H.E. Mr. Gabriel Boric Font's state visit to India from April 1-5, 2025, at the invitation of Indian Prime Minister Shri Narendra Modi.

During this meeting, leaders from both nations acknowledged the vital role of trade and commerce as a strong pillar of bilateral relations and emphasised the importance of enhancing the existing trade framework to create new growth opportunities.

The leaders welcomed the launch of CEPA negotiations, aiming to establish a balanced, ambitious, comprehensive, and mutually beneficial agreement for deeper economic integration.

(KNN Bureau)

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