India-Chile Comprehensive Economic Partnership Agreement (CEPA)
India and Chile have decided to advance their trade relations by negotiating a comprehensive free trade pact. This initiative aims to transition from their existing Preferential Trade Agreement (PTA) established in 2006 to a more extensive Comprehensive Economic Partnership Agreement (CEPA).
Key Features of the Proposed CEPA
- The CEPA aims to include a variety of sectors to enhance bilateral cooperation:
- Digital Services
- Investment Promotion and Cooperation
- Micro, Small, and Medium Enterprises (MSMEs)
- Critical Minerals
The Commerce and Industry Ministry emphasized the importance of the CEPA and noted the signing of the Terms of Reference (ToR) as a significant step forward in strengthening India-Chile trade relations.
Timeline and Negotiations
- An expanded PTA was signed in September 2016 and became effective from May 16, 2017.
- In April 2019, both nations agreed to further enhance their agreement, leading to three rounds of negotiations from 2019 to 2021.
- The first round of CEPA discussions is scheduled for May 26-30 in New Delhi.
Objectives and Benefits
- Unlocking Trade Potential: The CEPA aims to maximize the trade and commercial relationship between India and Chile.
- Boosting Employment: By facilitating investments and exports, the agreement seeks to boost employment opportunities.
- Facilitating Investment Promotion: Encouraging greater investment cooperation and promotion between the two countries.
The Ministry expressed optimism regarding the CEPA's potential to deepen economic engagement and foster a mutually beneficial trade environment.
