India and Chile: Paving the Way for a Comprehensive Trade Accord

India and the South American country of Chile have successfully completed the initial round of negotiations for a proposed Comprehensive Economic Partnership Agreement (CEPA), the Department of Commerce announced on Friday.

The nations, who first established a Preferential Trade Agreement in 2006, are now looking to expand this to a broader economic partnership. Since the expanded PTA was implemented in 2017, the desire for a comprehensive arrangement has strengthened. During recent talks across 17 sectors, both parties reiterated their commitment to enhancing economic ties.

This new agreement aims to build upon the existing trade pact by including digital services, investment promotion, and sectors like MSMEs and critical minerals. Despite the modest trade, which saw a decrease in Indian exports and an increase in imports, Chile remains a key trading partner for India in the Latin American region.

(With inputs from agencies.)