Negotiations for further expansion of a preferential trade agreement between India and South American nation Chile are in the final stages and both the countries would include about 400 more products under the pact with an aim to boost economic ties, an official said.
The two countries had signed a preferential trade agreement (PTA) on March 8, 2006, and it came into force from August 2007. In 2016, they expanded the scope of the agreement by including more products. Currently about 2,000 goods are covered under the pact.
In a PTA, two trading partners significantly reduce or eliminate import duties on certain goods traded between them.
“The talks for the second expansion of the agreement are in final stages. About 400 more goods would be covered under the pact,” the official said.
Goods like lithium and copper ores could come under the ambit of the pact among other key items, the official added.
Among Latin American countries, Chile is one of the largest trading partners of India.
India’s bilateral trade with Chile stood at $2.22 billion in 2018-19.
India’s exports to Chile include transport equipment, pharmaceuticals, yarn of polyester fibres, tyres and tubes, manufacture of metals, articles of apparel, organic/inorganic and agro chemicals, textiles, readymade garments, plastic goods, leather products, engineering goods, imitation jewellery, sports goods and handicraft.
Major items of import from Chile are copper ore and concentrates, iodine, copper anodes, copper cathodes, molybdenum ores and concentrates, lithium carbonates, metal scrap, chemicals, pulp and waste paper, fruits and nuts excluding cashews, fertilisers and machinery.
