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India, Chile ink ToRs to boost economic partnership through free trade pact
May-09-2025

India and Chile have signed terms of reference (ToRs) to negotiate a comprehensive free trade agreement. In 2006, both countries had implemented a preferential trade agreement (PTA) and are now planning to widen its scope for a comprehensive economic partnership agreement (CEPA). An expanded PTA was subsequently signed in September 2016 and became effective from May 16, 2017, further in April 2019, both countries had agreed to pursue a further expansion of the PTA. 

With the both countries seeking to extend their economic engagement, the commerce ministry has indicated that the both sides have expressed their intention to negotiate a CEPA to unlock the full potential of their trade and commercial relationship, boosting employment, facilitating investment promotion, and cooperation and exports. The CEPA aims to build upon the existing PTA between the two nations and seeks to encompass a broader range of sectors, including digital services, investment promotion and cooperation, MSME (Micro, Small and Medium Enterprises), and critical minerals.

India, Chile have emphasised the importance of enhancing the existing trade framework to unlock new opportunities for growth. In this spirit, the two leaders acknowledged the signing of the mutually agreed Terms of Reference (ToR) and welcomed the launch of negotiations for a CEPA, aiming to establish a balanced, ambitious, comprehensive, and mutually beneficial agreement for a deeper economic integration. Both sides reiterated their shared vision for strengthening bilateral relations and look forward to fruitful discussion during the first round scheduled for May 26 to 30, 2025, in New Delhi.

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