India and Chile Sign Terms of Reference for Comprehensive Economic Partnership
India and Chile have taken a significant step towards enhancing their economic ties by signing the Terms of Reference (ToR) for a Comprehensive Economic Partnership Agreement (CEPA) on May 8, 2025. This agreement aims to expand the existing trade framework between the two nations, paving the way for deeper economic integration. The signing ceremony was attended by key officials, including H.E. Mr. Juan Angulo, the Chilean Ambassador to India, and Shri Vimal Anand, the Chief Negotiator for India-Chile CEPA from the Indian side. Both countries are optimistic about the upcoming discussions scheduled for late May 2025 in New Delhi.
Strengthening Bilateral Relations
India and Chile have enjoyed a long-standing partnership characterized by warm relations and mutual cooperation. The two countries have progressively strengthened their ties through high-level visits and agreements. A Framework Agreement on Economic Cooperation was established in January 2005, followed by a Preferential Trade Agreement (PTA) in March 2006. These foundational agreements have laid the groundwork for robust economic and commercial relations, which have continued to evolve over the years.
In September 2016, an expanded PTA was signed, which took effect in May 2017. This expansion was a response to the growing economic interactions between the two nations. In April 2019, both countries agreed to further enhance the PTA, leading to three rounds of negotiations between 2019 and 2021. The ongoing discussions reflect a shared commitment to unlocking the full potential of their trade relationship, which is expected to boost employment and facilitate investment.
Comprehensive Economic Partnership Agreement Goals
The newly signed CEPA aims to build upon the existing PTA and broaden the scope of cooperation between India and Chile. The agreement will cover various sectors, including digital services, investment promotion, and cooperation in critical minerals. By enhancing economic integration, both countries hope to create new opportunities for growth and development.
The first round of negotiations for the CEPA is scheduled for May 26-30, 2025, in New Delhi. This meeting will be crucial in setting the agenda for future discussions and determining the framework of the agreement. Both sides are optimistic that the CEPA will lead to a balanced and mutually beneficial partnership, fostering deeper economic ties.
Recent Developments and Future Prospects
The commitment to strengthen economic relations was reaffirmed during the recent state visit of Chilean President H.E. Mr. Gabriel Boric Font to India from April 1-5, 2025. Invited by Indian Prime Minister Shri Narendra Modi, the visit underscored the importance of trade and commerce as pillars of the bilateral relationship. During their discussions, both leaders emphasized the need to enhance the existing trade framework to unlock new avenues for collaboration.
The signing of the ToR for the CEPA is seen as a pivotal moment in the India-Chile relationship. It reflects a shared vision for economic cooperation and a commitment to establishing a comprehensive agreement that benefits both nations. As negotiations progress, both countries are hopeful that the CEPA will lead to increased trade, investment, and overall economic growth, further solidifying their strategic partnership.
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