India and Chile Set Stage for Comprehensive Economic Partnership Agreement (CEPA)

India and Chile signed the Terms of Reference (ToR) to initiate negotiations for a Comprehensive Economic Partnership Agreement (CEPA), aiming to deepen their economic relations across a broad range of sectors. The agreement builds upon their existing Preferential Trade Agreement (PTA) and marks a major step towards comprehensive bilateral trade cooperation.

Why in News?

India and Chile signed the Terms of Reference for CEPA negotiations on May 8, 2025. This announcement follows the Chilean President Gabriel Boric Font’s State visit to India in April 2025, where both nations expressed their commitment to a deeper economic partnership.

Key Features of the CEPA Initiative

• Builds on the existing Preferential Trade Agreement (PTA).
• Expands into new sectors: digital services, MSMEs, critical minerals, and investment cooperation.
• Aims to foster inclusive and sustainable economic growth.
• Negotiations will begin from May 26–30, 2025 in New Delhi.

Background of India-Chile Economic Relations:

• 2005: Framework Agreement on Economic Cooperation signed.
• 2006: Preferential Trade Agreement (PTA) signed.
• 2016: Expanded PTA signed and effective from May 2017.
• 2019–2021: Three rounds of PTA expansion negotiations.
• April 30, 2024: Joint Study Group (JSG) finalized report recommending CEPA.
• April 2025: Chilean President’s State Visit reaffirmed economic goals.

Objectives of the CEPA

• Expand trade beyond goods to services and investments.
• Promote MSME collaboration and employment generation.
• Ensure mutual economic benefits through a rules-based framework.
• Enhance access to critical and strategic resources.

Significance

• Deepens India’s engagement with Latin America.
• Opens up new trade corridors and investment flows.
• Reflects India’s strategy to diversify trade partners.
• Strengthens multilateralism and South-South cooperation.

Summary/Static	Details
Why in the news?	India and Chile Set Stage for Comprehensive Economic Partnership Agreement (CEPA)
Agreement Type	Comprehensive Economic Partnership Agreement (CEPA)
Signed Between	India and Chile
Key Sectors Covered	Digital services, MSMEs, investment, critical minerals
First Round of Talks	May 26–30, 2025, in New Delhi
Based On	2005 Framework Agreement, PTA (2006 & 2016), Joint Study Group (2024)
Chilean President’s Visit	Gabriel Boric Font, April 1–5, 2025
Indian Chief Negotiator	Shri Vimal Anand, Joint Secretary, Ministry of Commerce