As the world increasingly turns to collaborative diplomacy to address global challenges, Chile and India are seizing the moment to enhance their bilateral relationship. The arrival of Chile’s Minister of Foreign Affairs, Alberto Van Klaveren, in India for a five-day official visit from August 27 to 31, 2024, signals a pivotal shift in how these two nations engage with each other. This visit not only underscores Chile’s strategic interest in India but also sets the stage for a deeper, more comprehensive partnership, ahead of the anticipated visit of President Gabriel Boric in early 2025. These diplomatic efforts highlight a shared vision for a more interconnected future, with both countries eager to explore new avenues for cooperation in trade, technology, and cultural exchange.
A Growing Diplomatic Relationship
Chile’s engagement with India is rooted in a shared commitment to expanding bilateral cooperation across multiple sectors. Minister Van Klaveren’s visit is a testament to the evolving relationship, which has seen both nations working closely to enhance their ties. His meetings with India’s External Affairs Minister, S Jaishankar, on August 28, are expected to focus on boosting cooperation in key areas such as trade, investment, and cultural exchange. These discussions will likely set the tone for the anticipated Comprehensive Economic Partnership Agreement (CEPA), which aims to expand trade beyond the current focus on agriculture and goods to include digital services and investment.
Economic Significance and Free Trade Prospects
Later in the day on Aug 28, the visiting minister is scheduled to meet with the Minister of Commerce and Industry Piyush Goyal. The expected talks between Minister Van Klaveren and Minister Goyal highlight the economic importance of Chile-India relations. With India looking to diversify its export markets and Chile aiming to secure a stronger foothold in Asia, the potential negotiation of a Comprehensive Economic Partnership Agreement (CEPA) is a critical point of discussion. Currently, the two countries are linked by a Preferential Trade Agreement (PTA) signed in 2005, which has laid the groundwork for more comprehensive economic collaboration. A CEPA could significantly enhance bilateral trade by opening new markets and facilitating greater investment opportunities.
The meeting between Minister Van Klaveren and Commerce and Industry Minister, Piyush Goyal, is expected to kickstart these negotiations, with a focus on broadening trade relations to encompass sectors like technology and energy. For India, which has seen saturated demand in its traditional export markets, the Latin American region presents a fresh opportunity for economic expansion. Chile, with its rich natural resources and strategic location, could become a vital partner in India’s efforts to secure new markets and diversify its energy supply, particularly in the realm of lithium mining—a key resource for the global renewable energy transition.
Day 2: Chile’s Strategic Positioning in India
Minister Van Klaveren’s visit to Mumbai, a major economic hub, further underscores the economic dimension of this diplomatic mission. Scheduled for August 29, this leg of the trip will involve engagements with business leaders and regional officials, highlighting the potential for deeper economic collaboration.
The Chile Summit India in New Delhi, held from August 27 to 30, serves as a critical platform for promoting Chilean exports, particularly fresh fruits, nuts, wines, and salmon—products that complement India’s agricultural production due to Chile’s counter-seasonal harvests.
The landmark event will have a keynote address by the Chilean Minister of Foreign Affairs along with insights from the minister of Agriculture Esteban Valenzuela and the Director General of the Export Promotion Bureau- ProChile Ignacio Fenandez.
This summit, which is described as the most significant Chilean diplomatic and trade mission to India in recent years, reflects Chile’s ambitions to double its presence in the Indian market. By positioning itself as a hub for accessing other Latin American markets, Chile aims to attract Indian businesses and investors, offering them a gateway to a region rich in opportunities.
Cultural and Technological Exchange
Beyond economic ties, Chile’s visit to India is also about building cultural and technological bridges. Minister Van Klaveren’s lecture at the School of International Studies, Jawaharlal Nehru University, on “Chile’s View on Latin America, Asia, and the World” offers a platform for deeper understanding and exchange between the two nations. This engagement is expected to foster greater appreciation of Chilean perspectives on global issues and further promote academic and cultural collaborations.
The visit also includes efforts to enhance technological partnerships, with a focus on exploring innovations that could benefit both countries. Chile’s interest in collaborating on technology and education aligns with India’s strengths in these fields, creating opportunities for joint ventures and research initiatives.
In Mumbai, the visiting minister is also expected to meet with representatives of the film industry and focus will be on promoting Chile as a destination.
Looking Ahead
As Chile and India continue to build on their bilateral relationship, the current visit by Minister Van Klaveren is set to pave the way for future collaborations and deepen existing ties. With both nations committed to fostering growth and mutual benefits, the ongoing diplomatic and economic engagements reflect a shared vision for a more connected and prosperous future. As they explore new opportunities and address global challenges together, Chile and India stand poised to make significant strides in their bilateral relationship.