India, Chile agree to begin talks for economic partnership pact
India and Chile on Tuesday announced they will begin negotiations for a comprehensive trade pact as Prime Minister Narendra Modi and Chilean President Gabriel Boric explored new avenues for cooperation in defence, critical minerals and technology.
The proposed comprehensive economic partnership agreement (CEPA) will build on a Preferential Trade Agreement that India concluded with Latin America’s fifth-largest economy in May 2017.
The move is also in line with New Delhi’s focus on South America, where India has expanded its diplomatic footprint in recent years.
At a media interaction after his talks with Boric, Modi described Chile as India’s “valued friend and partner country” in Latin America and said there is untapped potential in trade and investment. “Today, we have instructed our teams to initiate discussions on a mutually beneficial comprehensive economic partnership agreement,” he said, speaking in Hindi.
Boric cited India as a priority partner in the global economy and said the diversity of Chile’s economy and the country’s natural resources such as lithium and copper create grounds for economic cooperation at a time when “there are threats at the world level”.
He added, “We are going to have a CEPA and work together in a collaborative manner to strengthen our mutual benefits, which are going to be fundamental in a world that is evolving and talking about free trade.”