As global trade dynamics continue to evolve, India and Chile are intensifying their economic partnership, focusing on critical minerals and technology cooperation. This move comes as India grapples with a trade deficit with Chile, driven primarily by its import of copper, minerals, and gold from the South American nation.
India’s trade figures with Chile reveal exports valued at approximately $1.45 billion, predominantly in cars, drugs, and steel, against imports exceeding $2.5 billion. These figures underline the urgency behind the swift negotiations on the Comprehensive Economic Partnership Agreement (CEPA) between the two countries.
In a recent interview, Chile’s Ambassador to India, Juan Angulo, elaborated on the CEPA’s scope, which extends beyond mere trade to include critical minerals, electric mobility, technology, startups, agriculture, defense, and tourism. The agreement emphasizes long-term complementarities over short-term commercial benefits.
“This is not a negotiation starting from scratch,” Angulo noted, referencing the existing Preferential Trade Agreement (PTA) between India and Chile since 2007, which expanded in 2017. The PTA already encompasses around 2,300 tariff lines, providing a solid basis for further economic engagement.
Chile stands as the sole Latin American nation with such a bilateral preferential trade agreement with India. According to Angulo, “Now we are ready to move to the next level.”
The anticipated CEPA is projected to comprise nearly three dozen chapters, addressing trade in goods, services, investments, mobility, digital cooperation, and regulatory matters.
A crucial element of this partnership is expected to be centered around critical minerals, particularly lithium and copper. As a leading global producer of these resources, Chile represents a vital ally for nations transitioning to clean energy. For India, rapidly expanding its electric vehicle and battery production capabilities requires dependable access to these minerals.
“It is not enough simply to sell lithium or copper. The future lies in participating together across the value chain, from extraction to battery manufacturing and other advanced technologies,” Angulo explained.
Chile offers not just abundant mineral reserves but also regulatory certainty. Angulo highlighted Chile’s stable institutions, transparent regulations, and predictable investment environment as key attractions for international investors.
“Resources alone are not sufficient. Investors also need legal certainty, infrastructure, and institutional stability. Chile offers that combination,” he stated. Chile is actively engaging with Indian companies interested in lithium projects as part of the broader CEPA framework.
Recognizing India as a burgeoning technology powerhouse, Angulo praised its thriving innovation ecosystem. With over a million engineers graduating annually, India offers substantial potential for international collaborations.
Conversely, Chile boasts one of Latin America’s most robust startup ecosystems, supported by its globally acclaimed Startup Chile program. With free trade agreements spanning over 60 economies, Chile provides Indian businesses access to markets across the Americas, Europe, and Asia.
In addition to its strong digital infrastructure and political stability, Chile’s alignment with the U.S. time zone makes it an appealing destination for technology investments.
On the defense front, Chile has previously acquired an Indian-built naval vessel and continues evaluating Indian defense products. Although no major defense agreements are under negotiation, both nations maintain active institutional connections.
In response to the growing movement of professionals and investors, Chile has introduced a two-year multiple-entry visa for Indian business travelers, allowing stays of up to 90 days per visit without repeated applications. Indian tourists with a valid U.S. visa can still enter Chile visa-free under the current policy.
Chile has been increasing its export of premium agricultural goods such as cherries, apples, kiwis, grapes, and walnuts to India. It is also promoting salmon, dried fruits, fruit concentrates, processed foods, and premium wines to the Indian market.
Additionally, the presence of a police attaché at Chile’s embassy in New Delhi has facilitated personnel exchanges and specialized training programs, fostering institutional cooperation between the two countries.
Original Story at stratnewsglobal.com