Digital services, minerals in focus as India, Chile plan wider trade pact

New Delhi: India and Chile have signed the terms of reference to negotiate a comprehensive free trade pact.

The two countries implemented a preferential trade agreement in 2006 and are now planning to widen its scope for a comprehensive economic partnership agreement (CEPA).

The proposed CEPA seeks to encompass a broad range of sectors, including digital services, investment promotion and cooperation, MSMEs and critical minerals, the commerce and industry ministry said.

"India and Chile signed the ToR for a CEPA today, marking a significant advancement in their bilateral trade relations," the ministry said in a statement Wednesday. Both sides reiterated their shared vision for strengthening bilateral relations and look forward to fruitful discussion during the first round scheduled for May 26-30 in New Delhi, it said.

As per the statement, an expanded preferential trade agreement was signed in September 2016 and became effective from May 16, 2017. In April 2019, both countries agreed to pursue a further expansion of the agreement with three rounds of negotiations during 2019-2021. To deepen their economic engagement, both sides expressed their intention to negotiate a CEPA to unlock the full potential of their trade and commercial relationship, boosting employment, facilitating investment promotion, and cooperation and exports, the ministry said.