Have India and Chile Achieved a Milestone in Their Economic Partnership?
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Synopsis
India and Chile's recent signing of the terms of reference for a comprehensive economic partnership agreement (CEPA) could redefine their trade dynamics. This agreement paves the way for enhanced cooperation across various sectors, indicating a promising future for both nations.
Key Takeaways
- Terms of Reference signed for CEPA between India and Chile.
- CEPA aims to enhance bilateral trade relations.
- Focus on sectors like digital services and investment.
- Initial discussions set for May 26-30.
- Strengthening of economic ties since 2005.
New Delhi, May 9 (NationPress) India and Chile have officially established the terms of reference (ToR) for a comprehensive economic partnership agreement (CEPA), a move that signifies a remarkable step forward in their bilateral trade relations, as stated by the government on Friday.
The ToR was mutually agreed upon and signed by Juan Angulo, the Ambassador of Chile in India, and Vimal Anand, the Joint Secretary in the Department of Commerce and Chief Negotiator for the India-Chile CEPA.
Both nations reaffirmed their commitment to enhancing bilateral relations and anticipate productive discussions during the inaugural round set to take place in the national capital from May 26-30.
As per the Commerce Ministry, the CEPA is designed to build upon the existing preferential trade agreement (PTA) between the two countries and aims to cover a wider array of sectors, including digital services, investment promotion, cooperation, MSMEs, and critical minerals, thereby fostering economic integration and collaboration.
India and Chile are recognized as strategic partners and close allies, with a longstanding tradition of warm relations.
The ties between the two nations have consistently strengthened over the years, further bolstered by high-level visits. A Framework Agreement on Economic Cooperation was signed in January 2005, followed by the PTA in March 2006.
Since that time, the economic and commercial connections between India and Chile have remained strong and continue to expand.
The ministry noted that an expanded PTA was signed in September 2016 and became effective on May 16, 2017.
In April 2019, both countries agreed to pursue an additional expansion of the PTA, culminating in three rounds of negotiations from 2019 through 2021. To further their economic engagement, both parties expressed their commitment to negotiating a CEPA aimed at unlocking the full potential of their trade and commercial relationship, thus fostering employment, facilitating investment promotion, cooperation, and boosting exports, as recommended by the Joint Study Group established under the Framework Agreement.
The JSG report was finalized and signed on April 30, 2024.
Point of View
This agreement represents a pivotal moment for India and Chile, reflecting their commitment to fostering a robust economic relationship. As both nations navigate the complexities of global trade, this comprehensive economic partnership agreement (CEPA) signals their readiness to collaborate and innovate, ensuring mutual growth and prosperity.
NationPress
22/05/2025
Frequently Asked Questions
What is the CEPA between India and Chile?
The comprehensive economic partnership agreement (CEPA) aims to enhance trade relations between India and Chile by covering various sectors such as digital services, investment promotion, and critical minerals.
When was the ToR for CEPA signed?
The terms of reference (ToR) for the CEPA were signed on May 9, 2023.
What are the anticipated benefits of the CEPA?
The CEPA is expected to unlock trade potential, boost employment, and facilitate investment promotion and cooperation between the two nations.
How long have India and Chile been economic partners?
India and Chile have maintained a strong economic partnership since the signing of the Framework Agreement on Economic Cooperation in January 2005.
What sectors will the CEPA encompass?
The CEPA will encompass sectors such as digital services, investment promotion, MSMEs, and critical minerals.
