In a significant stride towards bolstering economic cooperation, India and Chile officially commenced the first round of negotiations for a Comprehensive Economic Partnership Agreement (CEPA) with a plenary opening ceremony held at Vanijya Bhawan, New Delhi.
This marks a historic moment in the long-standing and steadily growing bilateral relationship between the two nations. The Terms of Reference (ToR) for the CEPA were signed on May 8, 2025, signifying a mutual commitment to enhance and expand trade and economic collaboration. The ToR were signed by H.E. Mr. Juan Angulo, Ambassador of Chile to India, and Shri Vimal Anand, Joint Secretary in the Department of Commerce, Ministry of Commerce & Industry, Government of India, and the Chief Negotiator for India in the CEPA talks.
A Strong Foundation of Bilateral Ties
India and Chile share a warm and strategic partnership, grounded in mutual respect and economic synergy. A Framework Agreement on Economic Cooperation was signed in January 2005, followed by a Preferential Trade Agreement (PTA) in March 2006. Over the years, economic and commercial relations have deepened significantly.
An expanded PTA, signed in September 2016, came into effect on May 16, 2017. Further negotiations to expand the PTA continued between 2019 and 2021, showcasing a consistent commitment to nurturing trade relations.
To harness the full potential of their economic engagement, both nations decided to pursue a Comprehensive Economic Partnership Agreement (CEPA), as proposed by a Joint Study Group (JSG) constituted under the original Framework Agreement. The JSG report, which laid the foundation for CEPA negotiations was finalised and signed on April 30, 2024.
Reaffirming Commitment During High-Level Engagements
The launch of CEPA negotiations follows the State Visit of Chilean President H.E. Mr. Gabriel Boric Font to India from April 1–5, 2025, at the invitation of Prime Minister Shri Narendra Modi. Both leaders emphasised the pivotal role of trade and commerce in the bilateral relationship and reaffirmed the shared vision of a balanced, ambitious, and mutually beneficial CEPA.
Scope and Vision of CEPA
The India-Chile CEPA aims to build upon the existing PTA and broaden the scope of economic cooperation to include:
- Digital services
- Investment promotion and facilitation
- Micro, Small, and Medium Enterprises (MSME) collaboration
- Critical minerals
- Other key areas of mutual interest
This broader engagement is designed to deepen economic integration, enhance bilateral trade, create employment opportunities, and facilitate innovation and sustainable growth.
Looking Ahead
The first round of CEPA negotiations are underway from May 26–30, 2025, in New Delhi. Both sides have expressed optimism and a strong commitment to achieving substantive outcomes through constructive dialogue.
As India and Chile take this significant step forward, the CEPA stands as a beacon of the two nation’s shared goal of deepening strategic, economic, and commercial ties, unlocking new opportunities for prosperity in a rapidly evolving global economic landscape.
Curtesy: pib.gov.in
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