Chile keen on free trade pact
The Telegraph (Calcutta) | 16 July 2007
Chile keen on free trade pact
A STAFF REPORTER
Calcutta, July 15: Bilateral trade between India and Chile is likely to cross $2 billion this year.
The two countries, which signed a preferential trade agreement (PTA) in March last year, could go in for a free trade agreement in the future. The PTA is applicable to only 300 products in each country.
“We have free trade agreements with 54 countries, including China. India, however, seems to be a bit cautious about its trade policy,” Chilean ambassador Jorge Heine said while addressing a session at the Merchant’s Chamber of Commerce here today.
Chile exports products worth $1.7 billion to India, which was $230 million in 2003. India’s exports of around 1,200 products amount to $180 million. Chile exports around 100 products to India.
India is the tenth largest export market for Chile, which has an annual export value of $60 billion. India was at the 20th position in 2003. China, Japan and South Korea are Chile’s leading export markets. About 38 per cent of India’s imports from Latin America come from Chile. Chile mainly exports copper to India. It has one of the largest copper reserves in the world.
“India needs a lot of commodities to support its growth in infrastructure and power projects. Chile is an ideal destination to source commodities. Moreover, Indian products and brands, especially automobiles, will find a ready market in Chile. Maruti is one of the most affordable cars there,” said Heine.
Heine said Chile is also keen to work with IT companies and Bengal can play a major role in nearshoring.
Nearshoring involves Indian companies setting up base in countries that are close to the main market of the US. Tata Consultancy Services, for instance, has 1,500 employees in Chile.
Heine will meet chief minister Buddhadeb Bhattacharjee tomorrow. The Chilean trade and industry minister, who visited India earlier this year, held discussions with IT companies in Bangalore and New Delhi.
The Chilean ambassador said India could export tea to the country, which has one of the largest per capita consumption in Latin America.
