In the latest round of negotiations for free trade agreements (FTAs) with Peru and Chile, New Delhi made substantial progress, with discussions on critical minerals supplies figuring prominently.
A team of negotiators from India visited Lima from November 3-5, for the 9th round of discussions on the India-Peru Trade Agreement. After the talks it was decided to hold the 10th round of negotiations in New Delhi in January 2026.
“The discussions witnessed substantive progress across key chapters of the proposed Agreement including Trade in Goods and Services, Rules of Origin, Technical Barriers to Trade, Customs Procedures, Dispute Settlement, and Critical Minerals,” a statement by the Ministry of Commerce and Industry said.
Both sides agreed to hold intersessional meetings to address pending issues ahead of the next round of negotiations.
At the closing ceremony of the round, Minister of Foreign Trade and Tourism of Peru Teresa Stella Mera Gómez, affirmed Peru’s commitment to the timely conclusion of the negotiations, highlighting the complementarity between both economies and expressing optimism that the Agreement will enhance trade and investment flows.
Ambassador of India to Peru Vishvas Vidu Sapkal said that the Agreement would create new opportunities for cooperation in areas such as critical minerals, pharmaceuticals, automobiles, textiles and food processing.
Earlier, from October 27 to October 30 India and Chile held a third round of negotiations on their Comprehensive Economic Partnership Agreement (CEPA) in Santiago, Chile.
Discussions in Santiago covered a wide range of chapters or policy areas of CEPA – including trade in goods and services, investment promotion, rules of origin and intellectual property rights.
Technical Barriers to Trade and Sanitary and Phytosanitary (TBT/ SPS) measures, economic cooperation and critical minerals chapters were also discussed. “Both sides reaffirmed their shared commitment to an early and time-bound conclusion of the CEPA negotiations, which aim to enhance market access, strengthen supply chain resilience and deepen economic integration,” the statement added.
Apart from increasing trade flows, through these FTAs India is seeking to secure critical mineral supplies also. The security of supplies has been strongly felt as critical minerals are a key to emerging sectors of manufacturing. The supply shocks through frequent export controls by China is another reason to have a chapter on critical minerals in both these FTAs. This will lay down rules for trade of this commodity with Chile and Peru.
Chile and Peru have vast reserves of critical minerals, with both countries being world leaders in copper and possessing significant lithium, silver, and molybdenum deposits. Chile leads in copper reserves and is a major player in lithium, while Peru holds the world’s second-largest silver reserves and is also rich in copper and molybdenum.
Peru is the bigger trade partner than Chile in South America. In 2024-25 the exports to Peru stood at $ 1.02 billion while imports were $ 4.98 billion. Exports to Chile during that period were $ 1.15 billion while imports were $ 2.60 billion.
India’s main exports to Peru include automobiles, motorcycles and three-wheelers, polyester and cotton yarns, pharmaceuticals, iron and steel products, plastic products, rubber, pipes for oil and gas industry, tyres and pipes. Main imports from Peru are gold, copper, synthetic filaments, phosphates of calcium, fresh grapes and fish flour.
India’s export to Chile include motor vehicles/cars, drug formulations, chemicals, products of iron & steel, man-made yarn, fabrics, auto components, electric machinery and equipment, leather goods, rubber products, bulk drugs, drug intermediates, footwear of leather, iron and steel, aluminium & its product, and ceramics and allied products. Imports from Chile include metal ores, fruits, iron and steel, copper, and chemicals.