Negotiations for the further expansion of a preferential trade agreement between India and Chile, a South American nation, are in the final stages and the two countries would include around 400 additional products under the pact with the aim to strengthen economic ties, an official said. The two countries had signed a preferential trade agreement (PTA) on March 8, 2006, and it entered into force from August 2007. In 2016, they broadened the scope of the agreement to include more products. Currently, around 2,000 goods are covered by the pact.
In a PTA, two trading partners significantly reduce or eliminate import duties on certain goods traded between them. “Negotiations for the second extension of the agreement are in the final stages. About 400 additional goods would be covered by the pact, ”the official said.
Goods like lithium and copper ores could fall under the pact among other key elements, the official added. Among the countries of Latin America, Chile is one of India’s main trading partners.
India’s bilateral trade with Chile amounted to USD 2.22 billion in 2018-2019. India’s exports to Chile include transport equipment, pharmaceuticals, polyester fiber yarns, tires and tubes, metal fabrication, clothing, organic / inorganic and agrochemical chemicals, textiles, ready-made clothing, plastic products, leather products, engineering products, imitation jewelry, sporting goods and crafts.
The main products imported from Chile are copper ore and concentrates, iodine, copper anodes, copper cathodes, molybdenum ores and concentrates, lithium carbonates, scrap metal, chemicals, pulp and waste paper, fruits and nuts except cashews, fertilizers and machinery.