India and Chile set to have another round of trade talks later this month

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Updated: Mar 11, 2020 4:18 PM

The expansion of the existing PTA with Chile is expected to help India as it is a member of the Pacific Alliance, where New Delhi is an observer. After the expansion of the PTA, the trade basket will grow and the cooperation with the emerging bloc will deepen.

The two countries are holding talks to further expand the existing PTA which has been operational since 2017 and further expansion is to add more products.

India and Chile get ready to hold the second round of negotiations for expansion of trade basket. The talks will take place in New Delhi between March 26-27 where the focus is expected to be on liberalising around 90 per cent tariff lines.

As has been reported by the Financial Express Online earlier, in the first round of the expansion talks on the existing Preferential Trade Agreement (PTA) which had taken place in December 2019, both sides had agreed to exchange their wish lists.

Speaking on condition of anonymity, a senior official confirmed that the talks are on track and the Chilean side has shared their List of 1523 tariff lines at 8-digit HS Code.

The two countries are holding talks to further expand the existing PTA which has been operational since 2017 and further expansion is to add more products.

The expansion of the existing PTA with Chile is expected to help India as it is a member of the Pacific Alliance, where New Delhi is an observer. After the expansion of the PTA, the trade basket will grow and the cooperation with the emerging bloc will deepen.

So what is the existing PTA?

In the already operational PTA India has increased concession to Chile from 178 to 1031 tariff lines. And the South American nation on its part has given 1784 tariff lines at 8-digit HS code.

In the wish list the Chilean side has submitted it has sought further enhancement of the MoP for around 600 items. And it has requested for MoP on 922 tariff lines at 8-digit HS Codes which are currently not covered under existing PTA.

Besides the rare mineral Lithium which India has been keen to import for batteries for e-vehicles, there is also interest in copper and gold from there. Right now Chile is exporting fresh fruits including apples, blueberries, grapes, pears, etc., and copper ores, and Molybdenum ores.

And India has been selling diverse products including leather, textiles, automobiles, pharmaceuticals, chemicals, and other products.

The journey so far

The first trade agreement between the two countries was inked in 2006 and it became operational and it offered tariff concessions on a limited number of products.

Then the two countries decided to go in for expanding the trade agreement, which took almost a decade and became operational in 2017. This helped in further increasing the bilateral trade between the two countries.

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