India, Chile announce start of negotiations for comprehensive trade pact

New Delhi, : India and Chile on Tuesday announced they will begin negotiations for a comprehensive trade pact as Prime Minister Narendra Modi and Chilean President Gabriel Boric explored new avenues for cooperation in defense, critical minerals and technology. The proposed comprehensive economic partnership agreement (CEPA) will build on a Preferential Trade Agreement that India concluded with Latin America’s fifth largest economy in May 2017. The move is also in line with New Delhi’s focus on South America, where India has expanded its diplomatic footprint in recent years. At a media interaction after his talks with Boric, Modi described Chile as India’s “valued friend and partner country” in Latin America and said there is untapped potential in trade and investment. “Today, we have instructed our teams to initiate discussions on a mutually beneficial comprehensive economic partnership agreement,” he said, speaking in Hindi. Boric cited India as a priority partner in the global economy and said the diversity of Chile’s economy and the country’s natural resources such as lithium and copper create grounds for economic cooperation at a time when “there are threats at the world level”. He added, “We are going to have a CEPA and work together in a collaborative manner to strengthen our mutual benefits, which are going to be fundamental in a world that is evolving and talking about free trade.” Two-way trade between India and Chile was worth $2.6 billion in 2022-23, with India’s exports valued at $1.16 billion. India currently ranks ninth among Chile’s export partners. Modi said the two sides identified several initiatives to strengthen cooperation in the coming decade, including partnerships in critical minerals and establishing resilient supply and value chains. “In agriculture, we will collaborate to enhance food security by leveraging each other’s strengths,” Modi said, adding that India is ready to share its expertise in digital public infrastructure, renewable energy, railways and space with Chile. “We see Chile as the gateway to Antarctica. We welcome today’s agreement on the letter of intent to strengthen cooperation in this vital region,” he said. Boric, the first Chilean head of state to visit India in 16 years, invited Modi to visit Antarctica, where India has maintained two research stations since 1989. He also backed India’s bid to become a permanent member of a reformed UN Security Council. Besides the letter of intent for cooperation in Antarctica, Hindustan Copper and the National Copper Corporation of Chile (Codelco) signed a memorandum of understanding for cooperation. There were also agreements for cooperation in disaster management and cultural exchanges. A joint statement said the two sides will explore “substantial areas for bilateral defense cooperation”, including capacity building and defense industrial collaboration. They agreed to share knowledge under an existing formal defense cooperation agreement. “Increasing cooperation in defense is a symbol of our deep mutual trust. In this area, we will move forward to create defense industrial manufacturing and supply chains as per each other’s needs,” Modi said. “We will increase cooperation between the agencies of both countries to face common challenges like organized crime, drug trafficking and terrorism,” he added.

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