Once the existing agreement is further expanded it will help India as Chile is a member of the Pacific Alliance.
India and South American nation Chile meet in New Delhi seeking further expansion of the existing Preferential Trade Agreement (PTA).
Confirming this, ambassador of Chile to India Juan Angulo Monsalve said that “The two day negotiations which are going to conclude on Wednesday are focusing on liberalizing 80-90 per cent tariff lines. And to exchange a list of the products.”
The two countries have already signed the terms of reference. And the Chilean side is keen on including goods and services in the further expanded agreement when it will be concluded.
According to the envoy, the talks are on track to further expand the present PTA which is already operational as the idea is to expand the trade basket and to add more products.
Both sides are talking about issues related not only to the inclusion of more tariff lines/ increasing Margin of Preference (MoP), but also trade in goods, SPS/TBT, Customs, and Rules of Origin, which is in the PTA between the two sides.
Once the existing agreement is further expanded it will help India as Chile is a member of the Pacific Alliance. India is an observer in the grouping and this will help in deepening cooperation with the emerging bloc.
What is there in the operational PTA?
India has hiked concessions to Chile from 178 to 1031 tariff lines. And Chile on its part has given 1784 tariff lines at 8-digit HS code 2012.
The two countries have been gradually expanding their trade basket which is beyond the rare mineral Lithium. India is looking at copper and gold and the exports from the South American country includes copper ores, Molybdenum ores, fresh fruits like apples, blueberries, grapes, pears, etc.
And India has been exporting leather, textiles, automobiles, pharmaceuticals, chemicals, among other products which are diverse in nature.
When was the first PTA signed?
The first trade agreement between the two countries was signed in 2006 which became operational in 2007. In this first agreement, the tariff concessions were offered on a limited number of products.
This was then expanded after almost ten years of several rounds of negotiations in 2017, which helped in increasing the bilateral trade between the two countries.
From the Indian side, tariff concessions have been offered on products including leather products, iodine, meat and fish products, iodine, and industrial products. Concessions on agricultural, chemicals and pharmaceuticals products, also on dyes and resins have been offered by the South American nation.