Santiago City, Chile
New Delhi: India and Chile signed the Terms of Reference for a Comprehensive Economic Partnership Agreement on May 8, 2025, marking an advancement in their bilateral trade relations, the Ministry of Commerce & Industry stated today. The mutually agreed Terms of Reference, signed by Juan Angulo, Ambassador of Chile in India, and Vimal Anand, Joint Secretary in the Department of Commerce, Ministry of Commerce and Industry, and Chief Negotiator for the India-Chile Comprehensive Economic Partnership Agreement, outline the framework for negotiations starting 26-30 May 2025 in New Delhi. The agreement aims to expand trade across a broader range of sectors, including digital services, investment promotion and cooperation, Micro, Small and Medium Enterprises, and critical minerals, among others, to enhance economic integration and cooperation.
Both nations, strategic partners and close allies sharing warm and cordial relations, reiterated their shared vision for strengthening bilateral ties and look forward to fruitful discussions during the first round of talks. The Comprehensive Economic Partnership Agreement seeks to build upon the Preferential Trade Agreement signed in March 2006 and expanded in September 2016, effective from 16 May 2017. Since the 2006 Preferential Trade Agreement, economic and commercial relations between India and Chile have remained robust and continue to grow, with the new pact expected to boost employment, facilitate investment promotion, and increase exports.
This follows a history of economic cooperation. A Framework Agreement on Economic Cooperation, signed in January 2005, set the stage for trade ties, followed by the Preferential Trade Agreement. In April 2019, both countries agreed to pursue further expansion of the Preferential Trade Agreement, conducting three rounds of negotiations between 2019 and 2021. A Joint Study Group, established under the Framework Agreement, expressed their intention to negotiate a Comprehensive Economic Partnership Agreement to unlock the full potential of their trade and commercial relationship, boosting employment, investment promotion, cooperation and exports. The Joint Study Group report was finalised and signed on April 30, 2024.
Bilateral ties have steadily strengthened over the years with the exchange of high-level visits, most recently during the state visit of Chile’s President, Gabriel Boric Font, to India from 1-5 April 2025, on an invitation from Prime Minister Narendra Modi. During the visit, both leaders acknowledged that trade and commerce have served as a strong pillar of the bilateral relationship. They emphasised the importance of enhancing the existing trade framework to unlock new opportunities for growth, acknowledging the signing of the mutually agreed Terms of Reference and welcoming the launch of negotiations for a Comprehensive Economic Partnership Agreement. The leaders aimed to establish a balanced, ambitious, comprehensive, and mutually beneficial agreement for deeper economic integration between India and Chile.
– global bihari bureau
