India and Chile Sign Terms of Reference for Comprehensive Economic Partnership Agreement (CEPA)
India and Chile have signed the Terms of Reference (ToR) for launching CEPA negotiations, aiming to enhance bilateral trade and economic cooperation.
Key Highlights:
India and Chile Sign Terms of Reference for Comprehensive Economic Partnership Agreement (CEPA)
In a significant move to strengthen bilateral trade and economic cooperation, India and Chile have officially signed the Terms of Reference (ToR) for negotiations on a Comprehensive Economic Partnership Agreement (CEPA). The ToR was signed on May 8, 2025, marking a major step forward in the economic relationship between the two nations.
The signing ceremony was attended by H.E. Mr. Juan Angulo, Ambassador of Chile to India, and Shri Vimal Anand, Joint Secretary, Ministry of Commerce & Industry, Government of India, who is also the Chief Negotiator for India-Chile CEPA from the Indian side.
Key Highlights of India Chile CEPA
- Strengthening Bilateral Ties: Both countries emphasized their shared vision for enhancing economic cooperation, focusing on mutual growth.
- Broader Scope: The CEPA aims to build upon the existing Preferential Trade Agreement (PTA), covering:
- Digital Services: Facilitating secure and efficient digital trade.
- Investment Promotion: Encouraging investments in key sectors.
- MSME Cooperation: Supporting micro, small, and medium enterprises.
- Critical Minerals: Ensuring access to essential resources.
- Economic Integration: Promoting seamless trade and cooperation.
- First Round of Discussions: Scheduled from May 26-30, 2025, in New Delhi.
The Evolution of India Chile Trade Relations
India and Chile have a long history of strong economic ties, which have steadily grown over the years:
- 2005: Framework Agreement on Economic Cooperation signed.
- 2006: Preferential Trade Agreement (PTA) established.
- 2017: Expanded PTA took effect, covering a broader range of goods.
- 2019-2021: Three rounds of negotiations to further enhance the PTA.
- 2024: The Joint Study Group (JSG) finalized a report recommending the launch of CEPA.
Why India Chile CEPA is Important
The CEPA between India and Chile is expected to:
- Enhance Trade Volumes: Expand the range of goods and services exchanged.
- Attract Investments: Provide a secure framework for investors in both countries.
- Boost Employment: Generate new job opportunities through increased trade.
- Strengthen Strategic Ties: Cement diplomatic relations between the two nations.
Leadership Support for CEPA
The importance of CEPA was reaffirmed during the recent state visit of Chilean President Gabriel Boric Font to India from April 1-5, 2025, at the invitation of Prime Minister Narendra Modi.
- Strategic Partnership: Both leaders recognized trade and commerce as a strong pillar of bilateral relations.
- Growth Opportunities: They emphasized the need for a comprehensive agreement to unlock the full potential of the economic partnership.
- CEPA Negotiations Launched: The signing of the Terms of Reference has formally initiated the CEPA negotiation process.
What Lies Ahead
India and Chile are set to begin the first round of CEPA negotiations in New Delhi from May 26-30, 2025. The two countries aim to finalize a balanced, ambitious, and mutually beneficial agreement covering key sectors like digital trade, investment, MSME, and critical minerals.
As negotiations progress, CEPA is expected to unlock new opportunities for businesses, boost bilateral trade, and strengthen India-Chile relations.
Stay tuned for real-time updates and insights on India’s global trade initiatives.
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