'Significant progress' in critical minerals talks in latest rounds of FTA negotiations with Peru, Chile

Commerce Minister Piyush Goyal last month said that India is looking to diversify its rare earth sources by negotiating trade deals with Chile and Peru.

India made significant progress in discussions on critical minerals during the latest rounds of negotiations for free trade agreements (FTA) with Peru and Chile, the commerce ministry said in a statement on November 6.

The ninth round of talks for a proposed India–Peru trade agreement was held in Lima from November 3 to 5. Substantive progress was made across key chapters, including Trade in Goods and Services, Rules of Origin, Technical Barriers to Trade, Customs Procedures, Dispute Settlement, and Critical Minerals, it said.

India and Peru also agreed to hold intersessional meetings to address pending issues ahead of the next round of negotiations proposed in New Delhi in January.

The third round of negotiations for the India–Chile Comprehensive Economic Partnership Agreement (CEPA) was held in Santiago from October 27 to 30. Discussions covered a range of chapters including Trade in Goods and Services, Investment Promotion, Rules of Origin, Intellectual Property Rights, TBT/ SPS measures, Economic Cooperation and Critical Minerals.

"Both sides (India and Chile) reaffirmed their shared commitment to an early and time-bound conclusion of the CEPA negotiations, which aim to enhance market access, strengthen supply chain resilience and deepen economic integration," the statement said.

Last month, commerce minister Piyush Goyal said that India is looking to diversify its rare earth sources by negotiating trade deals with Chile and Peru.

This comes at a time when China, which dominates global trade in these commodities, significantly tightened its export controls on rare earth elements and finished magnets. These materials, used in everything from consumer electronics and electric vehicles to military equipment, were already subject to certain restrictions imposed in April.

India imports almost all of its rare earth permanent magnets. Government estimates place domestic demand at around 4,010 tonnes a year, which is expected to almost double to 8,220 tonnes by 2030.