India Boosts South America Trade: Secretary Visits Chile, Argentina, Brazil

India’s Commerce Secretary, Rajesh Agrawal, is set to visit Chile, Argentina, and Brazil from August 24 to 28, 2026. This strategic trip aims to bolster trade relations and diversify India’s overall trade strategy.

Advancing Ties with Chile

Discussions with Chile will focus on advancing a proposed Comprehensive Economic Partnership Agreement (CEPA). This agreement seeks to significantly expand upon the existing Preferential Trade Agreement (PTA), which was implemented in 2006.

The CEPA aims to cover a wider array of sectors, including:

• Digital services
• Investment promotion
• MSMEs
• Critical minerals

Both nations remain keen to resolve pending issues, such as market access and critical minerals. This commitment persists despite a recent change in Chile’s government.

Expanding Mercosur Engagement

In Argentina and Brazil, the agenda will likely include proposals to expand the preferential trade agreement between India and Mercosur. Mercosur is a South American trade bloc comprising Brazil, Argentina, Uruguay, and Paraguay.

The current India-Mercosur PTA, effective since 2009, has limited coverage. Both Argentina and Brazil are significant markets, and they are also seeking to reduce their dependence on China.

A notable point of discussion with Brazil will involve the ongoing sugar trade dispute at the World Trade Organisation (WTO). Brazil has alleged that India’s domestic support and export subsidies for sugar are inconsistent with WTO agreements, claims that India has contested.

Key Trade Growth Metrics

Bilateral trade figures for the 2025-26 period highlight growing economic engagement with these South American nations. These numbers underscore the importance of the Commerce Secretary’s visit in further strengthening India’s economic ties.

• India-Argentina trade increased by 25.5% to $5.96 billion.
• India-Brazil trade rose by 23.48% to $15 billion.
• India-Chile trade jumped by 66.45% to $6.25 billion.