India, Chile sign ToR for a comprehensive economic agreement

Commerce Minister Piyush Goyal

India and Chile have signed the terms of reference (ToR) for a comprehensive economic partnership agreement (CEPA), the government said in a statement on May 9.

"Both sides reiterated their shared vision for strengthening bilateral relations and look forward to fruitful discussion during the first round scheduled for May 26-30, 2025 in New Delhi," the statement added. The ToR was signed a day earlier.

The CEPA aims to build upon the existing Preferential Trade Agreement (PTA) between the two nations and seeks to encompass a broader range of sectors, including digital services, investment promotion and cooperation, MSME, critical minerals etc., thereby enhancing economic integration and cooperation.

A framework agreement on economic cooperation was signed between the two countries in January 2005 followed by the PTA in the March of next year.

An expanded PTA was subsequently signed in September 2016 and became effective May 16, 2017.

In April 2019, both countries agreed to pursue a further expansion of the PTA with three rounds of negotiations between the years during 2019-2021.

To deepen their economic engagement, both sides expressed their intention to negotiate a CEPA to unlock the full potential of the trade and commercial relationship, boosting employment, facilitating investment promotion, and cooperation and exports, as suggested by a joint study group established under the framework agreement.

The study group report was finalised and signed on April 30, 2024.