What happened?
India and Chile have finalised the terms of reference (ToR) for a Comprehensive Economic Partnership Agreement (CEPA). The CEPA aims to broaden bilateral cooperation beyond the existing Preferential Trade Agreement (PTA). The signed document includes digital services, investment, critical minerals, and micro, small and medium enterprises (MSMEs). The ToR was signed by Chile’s Ambassador to India, Juan Angulo, and Vimal Anand, joint secretary in India’s Department of Commerce. The first round of negotiations is scheduled for 26–30 May 2025 in New Delhi.
Why it matters to India
The CEPA with Chile is strategically important for India as it seeks to strengthen economic ties with key partners in Latin America. Expanding cooperation to include digital services and critical minerals aligns with India’s focus on developing its technology sector and securing resources for its growing industries. The emphasis on MSMEs also reflects India’s interest in promoting inclusive economic growth and supporting small businesses. Furthermore, strengthening trade relations with Chile, one of India’s top trading partners in Asia, can boost India’s exports and diversify its trade portfolio. This initiative, following Chilean President Gabriel Boric Font’s state visit to India in April 2025, underscores India’s proactive approach to enhancing its economic influence and fostering mutually beneficial partnerships.