India, Chile conclude 4th round of CEPA negotiations

• The fourth Round of negotiations for the India–Chile Comprehensive Economic Partnership Agreement (CEPA) concluded on December 5. 

• The five-day round witnessed intensive and constructive engagement between the delegations of India and Chile, resulting in substantial progress across the chapters under negotiation.

• Both sides reiterated their strong commitment to the timely conclusion of the CEPA negotiations, acknowledging the strategic significance of further strengthening bilateral economic ties. 

• They underscored that the CEPA, once concluded, would play a pivotal role in boosting bilateral trade, deepening economic cooperation, enhancing market access and creating new opportunities for businesses in both countries.

• On May 8, both sides signed Terms of Reference (ToRs) to negotiate the agreement.

• 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.

• Chile is the fifth largest trading partner of India in the Latin America and Caribbean region.

• Two-way trade between India and Chile was worth $3.8 billion in 2023-24.

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