India-Chile conclude first round of trade talks in New Delhi

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India and Chile concluded the first round of talks for a Comprehensive Economic Partnership Agreement (CEPA) on May 30 with five-days of hectic negotiations across 17 thematic topics.

The 17 topics or chapters that would constitute CEPA were mutually agreed upon by the two countries in the first round of talks. They are - trade in services, movement of natural persons, rules of origin, sanitary and phytosanitary measures, technical barriers to trade, customs procedures and trade facilitation, initial provisions and general definitions, core and institutional provisions, final provisions, transparency, dispute settlement, economic cooperation, MSMEs, women’s economic empowerment, critical and strategic minerals trade and sustainable development, global value chains, investment promotion and cooperation, and intellectual property rights.

The next round of negotiations is expected in July-August, 2025 and will be preceded by intersessional discussions through virtual conferences to address outstanding issues in advance of the upcoming meeting, officials of the Ministry of Commerce said.

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India and Chile aim to conclude their trade negotiations for a CEPA by 2026. This agreement would move beyond their existing Preferential Trade Agreement (PTA) to encompass broader areas like digital services, investment, and critical minerals.

The Indian government on May 9, 2025 announced it has signed the terms of reference with Chile for a CEPA. The mutually agreed terms were signed by Juan Angulo, Ambassador of Chile in India, and Vimal Anand, joint secretary in the Ministry of Commerce and Industry.

Anand is also the chief negotiator for the India-Chile CEPA on behalf of India. The Chilean negotiating team, comprising 17 delegates, was led by chief negotiator Pablo Urria, director for Asia and oceanic at the Ministry of Foreign Affairs, Chile.

Both the nations had agreed to get into a trade agreement when President of Chile, Gabriel Boric Font visited India between April 1-5, 2025 on an invitation from Prime Minister Narendra Modi.

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"The CEPA aims to unlock the full potential of the trade and commercial relationship between India and Chile, boosting employment, bilateral trade, and economic growth. The modalities of negotiation will emerge through stakeholder consultations and industry feedback. Both sides are committed to a gainful and explorative approach to ensure a successful and meaningful agreement," the commerce ministry said in a statement on May 30.

The first round of negotiations commenced on May 26, 2025 and during the inauguration of the talks, commerce secretary Sunil Barthwal stated that the agreement will pave the way for a deeper economic partnership and the creation of strengthened global value chains between the two countries.

India’s bilateral trade with Chile stood at $3.6 billion in 2024-25 as of February 2025. This is double the $1.8 billion of trade between the two countries in 2016-17, the earliest period for which there is data.

However, India maintains a trade deficit with Chile, with the deficit at around $2.5 billion in 2024-25.