India-Chile Set To Expand Preferential Trade, Explore Possibility Of Free Trade Pact
India’s export basket with Chile is diversified and keeping in view the wide variety of tariff lines offered by Chile, the expanded PTA would immensely benefit India.
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An agreement on the expansion of India–Chile Preferential Trade Agreement (PTA) was signed between India and Chile in a meeting held between Ms Rita Teaotia, Commerce Secretary and Mr Andrés Barbé González, Ambassador, Embassy of Chile on 6th September 2016.
A Preferential Trade Agreement (PTA) between India and Chile was earlier signed on March 8, 2006, and came into force with effect from August 2007. In the original PTA concluded on March 2006, India’s offer list to Chile consisted of 178 tariff lines the Margin of Preference (MoP) ranging from 10 to 50 per cent at 8-digit level and Chile’s offer list to India consisted of 296 tariff lines with MoP ranging from 10 to100 per cent at 8-digit level.
Under the expanded PTA, Chile has offered concessions to India on 1798 tariff lines with Margin of Preference (MoP) ranging from 30 to 100 per cent and India has offered concessions to Chile on 1031 tariff lines at 8-digit level with MoP ranging from 10 to 100 per cent. India’s export basket with Chile is diversified and keeping in view the wide variety of tariff lines offered by Chile, the expanded PTA would immensely benefit India.
Among the LAC countries, Chile was the third-largest trading partner of India during 2015-16. India‘s bilateral trade with Chile stood at $2.64 billion with exports at $0.68 billion and imports at $1.96 billion respectively during 2015-16(P). India’s exports to Chile are diverse which consist of transport equipment, drugs and pharmaceuticals, yarn of polyester fibres, tyres and tubes, manufacture of metals, articles of apparel, organic/inorganic and agrochemicals, textiles, readymade garments, plastic goods, leather products, engineering goods, imitation jewellery, sports goods and handicrafts. Major items of Import from Chile are copper ore and concentrates, iodine, copper anodes, copper cathodes, molybdenum ores and concentrates, lithium carbonates and oxide, metal scrap, inorganic chemicals, pulp & waste paper, fruits & nuts excluding cashews, fertilizers and machinery.
India has friendly relations with Chile. Chile has been cooperating with India at the International fora and expansion of India Chile PTA will enhance the trade and economic relations between the two countries. The expansion would be an important landmark in India-Chile relations and consolidate the traditional fraternal relations that have existed between India and LAC countries.