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India and Chile Sign Terms of Reference to Launch Comprehensive Economic Partnership Agreement (CEPA) Negotiations.

National | Dated: 13 May 2025

On May 8, 2025, India and Chile signed a Term of Reference (ToR) for initiating negotiations on a Comprehensive Economic Partnership Agreement (CEPA). This step marks a major advancement in enhancing bilateral trade and economic cooperation between the two nations.

🎯 Key Highlights:

  • - The ToR was signed by H.E. Juan Angulo, Ambassador of Chile to India, and Vimal Anand, Joint Secretary, Department of Commerce, Ministry of Commerce & Industry (MoC&I), who is also the Chief Negotiator from the Indian side. The first round of CEPA negotiations is scheduled to begin on May 26, 2025.
  • - India and Chile began their trade engagement with a Framework Agreement on Economic Cooperation in 2005, followed by the implementation of a Preferential Trade Agreement (PTA) in 2006. This PTA was later expanded in September 2016 and became effective from May 16, 2017.
  • - In April 2019, both countries agreed to work towards further expanding the PTA. The signing of the ToR for CEPA represents a commitment to deepen trade, investment, and cooperation in various sectors, taking the bilateral relationship to a more comprehensive level.

💡 Other Important Facts:

  • (i) The Comprehensive Economic Partnership Agreement (CEPA) between India and Chile aims to build upon the existing Preferential Trade Agreement (PTA) and transform the economic partnership into a broader, more comprehensive framework.
  • (ii) The proposed Comprehensive Economic Partnership Agreement (CEPA) between India and Chile aims to significantly broaden the scope of bilateral cooperation by covering key sectors such as digital services, investment promotion and cooperation, Micro, Small and Medium Enterprises (MSMEs), and critical minerals. These areas are vital for advancing economic integration and fostering joint development between the two nations.
  • (iii) Under CEPA, both countries seek to deepen their economic engagement, unlock the full potential of trade and commerce, and boost employment. The agreement is also expected to facilitate greater investment promotion and export growth, positioning India-Chile trade relations at a more strategic and dynamic level.

📚 Test Your Knowledge:

Recently, India signed the Terms of Reference (ToR) for a Comprehensive Economic Partnership Agreement (CEPA) with which Latin American country?

Correct Answer: Chile

🚀 Quick Recap:

About Chile

  • President: Gabriel Boric Font
  • Capital: Santiago