India and Chile have signed the Terms of Reference (ToR) for a Comprehensive Economic Partnership Agreement (CEPA) on Thursday, marking a significant advancement in their bilateral trade relations.
“The mutually agreed ToR were duly signed by H.E. Mr. Juan Angulo, Ambassador of Chile in India and Shri 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,” read a statement issued by the Indian government on Friday.
Both sides reiterated their shared vision for strengthening bilateral relations and look forward to fruitful discussion during the first round scheduled for May 26-30, 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.
Framework Agreement
A Framework Agreement on Economic Cooperation was signed between the two countries in January 2005, followed by a 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 16th 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.
CEPA
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 finalised and signed on 30th April, 2024.
This shared vision was reaffirmed during the recent State visit of the President of Chile, Gabriel Boric Font, to India from 1-5 April 2025, on an invitation from Prime Minister Narendra Modi. Leaders from both sides acknowledged that trade and commerce have served as a strong pillar of the bilateral relationship.
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.
(With inputs from IBNS)
