Chile moots FTA, India apprehensive
The Hindu, India
Chile moots FTA, India apprehensive
21 April 2008
Santiago (PTI): Chile on Tuesday offered a platform for India to access Latin American markets but New Delhi appeared not forthcoming on a bilateral Free Trade Agreement (FTA).
"Chile can be a platform for India in Latin America as we have all the necessary required infrastructure — roads, ports, buildings, telecommunication — for operating business into the entire Latin America," Chilean President Michelle Bachelet she said after hosting a ceremonial welcome to President Pratibha Patil at the imposing La Moneda palace.
The Chilean President also favoured going a step ahead of the Preferential Trade Agreement (PTA) and engage in a Free Trade Agreement with India as she favoured diversification of bilateral trade and investment basket to give a greater fillip to the trade between the two countries.
But Indian officials felt that the existing trade pact (PTA) was working well and could be taken forward.
"It (FTA) is one of the several options we have. We have the PTA working wonderfully and we will have to take it forward... it could be an extension of the existing PTA," Nalin Surie, Secretary (West) in the Ministry of External Affairs told reporters.
Under PTA, India gives tariff preferences on nearly 200 Chilean items, while Chile has cut duties on nearly 300 Indian items.
Chile is the first country in Latin America with which India has an operative PTA. The bilateral trade of USD 2.4 billion between India and Chile got a boost with the signing of the PTA in 2006.
