India, Chile to talk FTA in Jan

Posted: Monday, Dec 20, 2004 at 0122 hrs IST
Updated: Monday, Dec 20, 2004 at 0122 hrs IST

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Santiago, Dec 19: President of Chile Ricardo Lagos Escobar is slated to visit India for the first time as head of state during January 17-18 with a team of ministers and senior government functionaries. Among the items on the agenda are a proposed trade agreement between India and Chile and talks on facilitating foreign direct investment and co-operation on negotiations for global trade norms.

President Escobar told FE that Chile had splendid political relations with India and that a lot could be done in the economic arena. He indicated that besides direct trade between the two countries, Chile could also act as the bridge between India and Latin America. The President is also keen to establish closer ties with India for co-operation on global trade issues like non-tariff barriers, subsidies and patents (IPRs). He highlighted the importance of multilateral institutions and forums like the WTO and G-20 for evolving a consensus on rules. “There can be no globalisation without global rules. India and Chile must have a voice in establishing rules of global trade,” he expounded.

On the trade front, Chile is looking to expand its fruit and wine exports to India. Negotiations on trade agreement are slated to commence in the first week of January, ahead of President Escobar’s arrival. Speaking on the issue, Chile’s minister of agriculture, Jaime Campose said, “The possibility of a free trade agreement (FTA) was discussed two years ago when I visited Delhi and Mumbai and we hope to conclude this in the coming year.” While refusing to comment on negotiations, the minister indicated that Chile was in favour of including all products in the agreement. He also indicated that Chile would look to establish greater contact between research organisations in the two countries and that there were definite possibilities of establishing joint ventures in the food processing and cold chain segments. Fruits like apples, grapes, pears and almonds are currently being imported by India from Chile, but the quantum of exports is still small. Minister Campose indicated that agri-exports to India amount to a mere $5 million at present, but given the complimentary of seasons in the two countries - different harvest cycles - there was scope to considerably enhance trade. Chile currently imports agri-products like tea, coffee, cotton, wheat and soya besides prawns. A reduction in duties, minister Campose believes, can help expand the trade basket with India, which mostly comprises prawns, tea and spices at...

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