India, Chile sign terms for comprehensive economic partnership agreement
Business World | 9 May 2025
India, Chile sign terms for comprehensive economic partnership agreement
India and Chile have taken a major step towards deepening their economic partnership with the signing of the Terms of Reference (ToR) for a Comprehensive Economic Partnership Agreement (CEPA) on 8 May 2025. The agreement sets the stage for formal negotiations aimed at significantly enhancing bilateral trade and investment cooperation between the two countries.
The ToR were officially signed by H.E. Juan Angulo, Ambassador of Chile to India, and Vimal Anand, Joint Secretary in the Department of Commerce, Ministry of Commerce & Industry, who also serves as the Chief Negotiator for the India-Chile CEPA.
Both sides reaffirmed their commitment to strengthening bilateral relations and expressed optimism about the upcoming first round of negotiations, scheduled to take place from 26 to 30 May 2025 in New Delhi.
The CEPA aims to build upon the Preferential Trade Agreement (PTA) currently in place and will encompass a wider array of sectors including digital services, investment promotion, critical minerals, MSME collaboration, and more. The initiative seeks to enhance economic integration and promote inclusive growth through comprehensive and mutually beneficial terms.
India and Chile enjoy a longstanding partnership rooted in shared values and growing strategic cooperation. Their economic and commercial ties have steadily strengthened since the signing of a Framework Agreement on Economic Cooperation in January 2005, followed by the PTA in March 2006. An expanded PTA was later concluded in September 2016 and implemented from May 2017, with further rounds of negotiations held between 2019 and 2021 to explore deeper economic engagement.
A Joint Study Group (JSG) was established under the Framework Agreement to examine the scope for a CEPA. Its final report, signed on 30 April 2024, laid the groundwork for the upcoming negotiations by identifying key areas of potential collaboration and mutual interest.
The momentum for the CEPA was reinforced during the State visit of the President of Chile, H.E. Gabriel Boric Font, to India from 1 to 5 April 2025, at the invitation of Prime Minister Narendra Modi. The two leaders acknowledged that trade and commerce form a cornerstone of the bilateral relationship and stressed the importance of an enhanced trade framework to unlock new growth opportunities.
Welcoming the launch of CEPA negotiations, both leaders underscored the need for a balanced, ambitious, and comprehensive agreement that would further deepen economic ties, promote job creation, encourage investment, and facilitate exports in both nations.
The signing of the ToR marks a pivotal milestone in India-Chile relations and signals the beginning of a new chapter in strategic economic collaboration.
