India, Chile cut tariff on bilateral trade

New Delhi, Nov 23 | Updated: Nov 24 2005, 06:15am hrs
India and Chile agreed on tariff cuts in the range of 10-50% in the run-up to the preferential trade agreement (PTA). The reduction would benefit 266 Chilean products covering 98% of that countrys exports and 296 products, accounting for 91% of Indias exports.

Cars, textiles, chemicals, pharma and agricultural machinery are among the Indian products included in the PTA.

Copper, cellulose, newsprint, iodine, fish meal, woodboards and lanks and salmon can be found among the Chilean products covered by the agreement.

According to a release from Chilean embassy, a joint study group undertaken by both countries on the potential and likely impact of a free trade agreement (FTA) between the two countries concluded that such a pact would have a significant and positive impact on bilateral trade.

Trade between Chile and India has been growing fast over the last few years. In 2004, India-Chile trade reached a record $525 million. Chiles exports to India grew by 90% in 2004 at $425 million. Indias exports in the year were $100 million. Although Chile has a favourable trade balance, Indias exports are more diversified, with over 1000 products.