NewzVille Desk
Marking a significant advancement in bilateral trade relations, India and Chile signed the Terms of Reference (ToR) for a Comprehensive Economic Partnership Agreement (CEPA) on 08 May 2025.
The mutually agreed ToR were duly signed by Juan Angulo, Ambassador of Chile in India and Vimal Anand, Joint Secretary, Department of Commerce, Ministry of Commerce & Industry, Government of India, also the Chief Negotiator for India-Chile CEPA from the Indian side.
Both sides reiterated their shared vision for strengthening bilateral relations and look forward to fruitful discussion during the first round scheduled for 26-30th May, 2025 in New Delhi.
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, critical minerals etc. thereby enhancing economic integration and cooperation.
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. A Framework Agreement on Economic Cooperation was signed between the two countries in January, 2005, followed by Preferential Trade Agreement (PTA) in March, 2006. Since then economic and commercial relations between India and Chile have remained robust and continue to grow.
An expanded PTA was subsequently signed in September, 2016 and became effective from 16 May, 2017. In April, 2019 both countries agreed to pursue a further expansion of the PTA with three rounds of negotiations between the years during 2019-2021.
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, as suggested by the Joint Study Group established under the Framework Agreement. The JSG report was finalized and signed on 30 April, 2024.
Recently President of Chile Gabriel Boric Font had a State visit to India from 1-5 April, 2025 on an invitation from Prime Minister of India, Narendra Modi. Leaders from both sides acknowledged that trade and commerce have served as a strong pillar of the bilateral relationship.
They emphasized 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.
