Union Commerce and Industry Minister Piyush Goyal recently met with Claudia Sanhueza, Treasury Undersecretary in the Ministry of Foreign Affairs of Chile, to review the progress of negotiations on the Comprehensive Economic Partnership Agreement (CEPA) between India and Chile.

This marks an important step in enhancing bilateral trade relations.

Officials from India and Chile concluded the fourth round of CEPA talks on 5th December 2025. This round followed the signing of the Terms of Reference (ToR) for the CEPA on 8th May 2025, which represented a significant advancement in formalising and advancing trade discussions between the two nations.

The ToR signing was carried out by Juan Angulo, Ambassador of Chile in India, and Vimal Anand, Joint Secretary, Department of Commerce, Ministry of Commerce & Industry, Government of India, who also serves as the Chief Negotiator for India in the CEPA negotiations. The agreed ToR set the foundation and framework for the subsequent detailed negotiations.

Both sides reiterated their dedication to strengthening their bilateral relations and expressed optimism for productive discussions in the upcoming rounds of talks, including the first round which took place from 26th to 30th May 2025 in New Delhi.

The proposed CEPA intends to expand the scope of the current Preferential Trade Agreement (PTA) between India and Chile. Unlike the PTA which focused primarily on tariff concessions, the CEPA aims to encompass a wider range of sectors such as digital services, investment promotion and co-operation, support for Micro, Small and Medium Enterprises (MSMEs), and critical minerals. This broader coverage seeks to deepen economic integration and foster greater co-operation.

India and Chile are regarded as strategic partners with warm and congenial relations that have been steadily strengthened through numerous high-level visits over the years. The two countries share common interests in expanding their economic and commercial ties.

The foundation of these economic ties was laid by the Framework Agreement on Economic Co-operation signed in January 2005, followed by a Preferential Trade Agreement in March 2006, which marked the beginning of formalised economic engagement. Since then, the bilateral commercial relationship has grown steadily.

An expanded version of the PTA was signed in September 2016 and came into effect on 16th May 2017. In April 2019, both countries agreed to further expand the PTA, leading to three negotiating rounds conducted between 2019 and 2021 to explore deepening the scope of trade cooperation.

To further enhance their economic engagement, India and Chile decided to pursue a CEPA aimed at unlocking the full potential of their trade and commercial relationship.

This includes objectives to boost employment, promote investment, support exports, and fortify co-operation across multiple sectors. These goals were outlined by the Joint Study Group established under the Framework Agreement.

The Joint Study Group’s report, which assessed the potential for a comprehensive trade agreement, was finalised and signed on 30th April 2024, paving the way for the current CEPA negotiations.

The commitment to expanding bilateral economic ties was reaffirmed during the recent state visit of the President of Chile, Gabriel Boric Font, to India between 1st and 5th April 2025. This visit was conducted at the invitation of the Indian Prime Minister Narendra Modi and included discussions emphasising the importance of economic and commercial cooperation.

During the visit, leaders from both countries recognised trade and commerce as fundamental pillars of their bilateral relationship, underlining the need to strengthen and expand the existing trade framework to unlock fresh opportunities for growth.

In this context, the signing of the mutually agreed Terms of Reference and the official launch of CEPA negotiations were warmly welcomed as key milestones. Both sides envisage a balanced, ambitious, comprehensive, and mutually beneficial agreement that will facilitate deeper economic integration between India and Chile in the coming years.

Based On ANI Report