Context:
Recently, India and Chile have agreed to begin negotiations for a Comprehensive Economic Partnership Agreement(CEPA) to enhance defense and security cooperation.
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At the invitation of the Prime Minister of India, the President of the Republic of Chile, Mr. Gabriel Boric Font, is on a State visit to India from 1-5 April 2025.
India and Chile currently holds a Preferential Trade Agreement since 2016.
The talks for an economic partnership agreement were initiated with an aim of expanding partial trade agreement into a comprehensive Foreign Trade Agreement (FTA).
Four agreements were signed, between the two countries to enhance bilateral cooperation.
- Antarctica Cooperation: A letter of intent was signed to strengthen existing Antarctic cooperation, facilitating partnerships in the areas like conservation of Antarctic marine living resources, bilateral dialogues, joint initiatives, and academic exchanges.
- Cultural Exchange: A Memorandum of Understanding (MoU) was signed to promote cultural exchange between India and Chile.
- Copper Mining Cooperation: An MoU was signed between CODELCO (Chile’s state-owned copper company) and Hindustan Copper Limited (India) for cooperation and exchange of information regarding copper exploration and mining.
- Disaster Management: The agreement focuses on cooperation in disaster management, including sharing experiences, knowledge, and best practices to enhance preparedness and response capabilities.
India has invited Chile for World Audio Visual & Entertainment Summit (WAVES) 2025.
The Prime Minister of India described Chile as the “gateway to Antarctica”.
The India-Chile partnership is also aiming to strengthen in the field of critical minerals and work will be done to establish resilient supply and value chains.
What is a Comprehensive Economic Partnership agreement?
- A Comprehensive Economic Partnership Agreement (CEPA) is a type of free trade agreement that goes beyond traditional trade in goods, encompassing areas like services, investment, and other economic cooperation aspects, aiming for a more holistic and deeper economic relationship between countries.
- FTA is an agreement between the country(s) or regional blocks to reduce or eliminate trade barriers, through mutual negotiations with a view to enhancing trade.