In a major step toward deepening bilateral economic relations, India and Chile have signed the Terms of Reference (ToR) to initiate negotiations for a Comprehensive Economic Partnership Agreement (CEPA). The agreement was formalized on Thursday, marking a major milestone in the long-standing and steadily growing trade partnership between the two nations.
The CEPA aims to expand and enhance the existing Preferential Trade Agreement (PTA) by incorporating broader areas of cooperation, including digital services, investment promotion, micro, small and medium enterprises (MSMEs), and critical minerals. This new framework is expected to foster greater economic integration and open up new avenues for bilateral collaboration.
The evolving trade relationship between India and Chile traces back to the Framework Agreement on Economic Cooperation signed in January 2005, followed by the PTA in March 2006. An expanded version of the PTA came into force on May 16, 2017, after being signed in September 2016. Between 2019 and 2021, both countries held three rounds of negotiations to further expand the PTA, reinforcing their commitment to strengthening economic ties.
Building on this momentum, the Joint Study Group (JSG), constituted under the original framework agreement, recommended moving towards a CEPA. The JSG’s final report, signed on April 30, 2024, laid the groundwork for launching comprehensive negotiations.
The shared ambition for deeper economic engagement was reaffirmed during the State visit of Chilean President H.E. Mr. Gabriel Boric Font to India from April 1 to 5, 2025, at the invitation of Indian Prime Minister Narendra Modi. During the visit, both leaders highlighted trade and commerce as a vital pillar of bilateral cooperation and underscored the need to modernize and enhance the existing trade framework.
The ToR were officially signed by H.E. Mr. Juan Angulo, Ambassador of Chile to India, and Vimal Anand, Joint Secretary in the Department of Commerce, Ministry of Commerce & Industry, and Chief Negotiator for the India-Chile CEPA.
Both nations have expressed optimism about the upcoming negotiations, with the first round scheduled to take place from May 26 to 30, 2025, in New Delhi. Officials anticipate that the CEPA will result in a balanced, ambitious, and mutually beneficial agreement that will further boost trade, investment, and employment in both countries.
