• India and Chile signed Terms of Reference (ToRs) to negotiate the Comprehensive Economic Partnership Agreement (CEPA).

• India and Chile are strategic partners and close allies, sharing warm and cordial relations. Bilateral ties have steadily strengthened over the years with the exchange of high-level visits.

• The two countries implemented a Preferential Trade Agreement (PTA) in 2006 and are now planning to widen its scope for CEPA.

• An expanded PTA was subsequently signed in September 2016 and became effective from May 16, 2017.

• In April 2019, both countries agreed to pursue a further expansion of the PTA.

• To deepen their economic engagement, both sides expressed their intention to negotiate a CEPA to unlock the full potential of their trade and commercial relationship, boosting employment, facilitating investment promotion, and cooperation and exports.

• The CEPA aims to build upon the existing PTA between the two nations and seeks to encompass a broader range of sectors, including digital services, investment promotion and cooperation, MSME (Micro, Small and Medium Enterprises), and critical minerals.

• They emphasised the importance of enhancing the existing trade framework to unlock new opportunities for growth. 

• In this spirit, the two leaders acknowledged the signing of the mutually agreed Terms of Reference (ToR) and welcomed the launch of negotiations for a CEPA, aiming to establish a balanced, ambitious, comprehensive, and mutually beneficial agreement for a deeper economic integration.

(The author is a trainer for Civil Services aspirants.)