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With India and Chile concluding the third round of negotiations for a Comprehensive Economic Partnership Agreement (CEPA) in Santiago in October, India hopes to take forward the talks in December and finalise the free trade agreement (FTA) before the year ends.

An official said the next round of discussions between the two countries on the proposed free trade agreement is expected to be held in December here, in which India hopes to get better access to critical minerals, which are key inputs for a range of products, including electronics, electric vehicles, jet engines, auto, and solar sectors.

India is seeking preferential treatment for critical minerals in Chile – its fifth-largest trading partner in the LAC (Latin American countries) region.

India and Chile implemented a preferential trade agreement (PTA) in 2006 and are now negotiating to widen its scope for a comprehensive economic partnership agreement that aims to build upon the existing PTA while encompassing a broader range of sectors, including digital services, investment promotion and cooperation, MSMEs (micro, small and medium enterprises), and critical minerals.

 

Also Read: Critical minerals core of India-Chile CEPA talks: Envoy

India’s growing trade engagement with Chile reflects its strategic focus to expand into the Latin American region through mutually-beneficial and comprehensive economic cooperation frameworks, the official added.

The bilateral trade between India and Chile has so far been modest, with India’s exports to Chile going down 2.46 per cent to just USD 1.15 billion in 2024-25.

Its imports, however, grew 72 per cent to USD 2.60 billion in the same year.

The largest Indian exports to Chile are auto and pharma, while the biggest imports from Chile are minerals worth around USD 1.58 billion. Other products imported from Chile by India are copper and chemicals.

India ships motor vehicles/cars, drug formulations, chemicals, iron and steel products, man-made yarn, fabrics, cotton fabrics, made-ups, RMG (ready-made garments), auto components, electric machinery and equipment, leather goods, rubber products, aluminium and its products, and ceramics to the South American nation.