India-Chile CEPA Finalization Targeted for End-2024

India’s Department of Commerce has declared its commitment to finalizing negotiations for a Comprehensive Economic Partnership Agreement (CEPA) with South American nation Chile by the close of this year. This strategic push aims to foster equitable, commercially meaningful, and mutually beneficial outcomes for businesses in both countries.

Advancing Bilateral Economic Ties

Commerce Secretary Rajesh Agarwal is currently in Chile, conducting a review of the ongoing discussions. During his meeting with Paula Estevez Weinstein, Chile’s Vice-Minister of International Economic Relations, Agarwal underscored the importance of strengthening the existing India-Chile relationship.

Agarwal emphasized that the proposed CEPA is designed to translate shared ambitions into tangible opportunities for both trade and investment. The Indian government is actively working towards ensuring the agreement benefits businesses across sectors in both nations.

Trade Dynamics and Existing Agreements

The two nations have an established economic framework, having implemented a Preferential Trade Agreement (PTA) in 2006. Despite this long-standing arrangement, the overall bilateral trade between India and Chile remains modest, prompting the current CEPA negotiations.

Recent trade figures reveal a mixed performance in the 2024-25 fiscal year. India’s exports to Chile experienced a 2.46 per cent decline, amounting to $1.15 billion during this period.

In contrast, India’s imports from Chile witnessed significant growth, increasing by 72 per cent to reach a total of $2.60 billion. These figures highlight the evolving nature of the trade relationship as CEPA talks progress.

The renewed commitment to concluding the CEPA by year-end underscores India’s strategic intent to deepen its economic engagement with Latin American partners. A successful agreement could lay the groundwork for expanded commercial exchanges and investment prospects between India and Chile.