India, Chile ink agreement to expand scope of PTA
India and Chile have inked an agreement to expand the scope of their existing Preferential Trade Agreement (PTA) by covering more goods for tariff concessions.
A PTA between India and Chile was earlier signed in March 2006 and had come into force with effect from August, 2007.
Under the expanded PTA
- Chile has offered concessions to India on 1,798 tariff lines with Margin of Preference (MoP) or rate of concessions, ranging from 30-100%.
- Likewise, India has offered concessions to Chile on 1,031 tariff lines, with MoP ranging from 10-100%.
Expansion of India-Chile PTA will enhance the trade and economic relations between the two countries. It will be an important landmark in India-Chile relations and consolidate the traditional fraternal relations that have existed between India and LAC countries.
- Among the Latin American Countries (LAC), Chile was the third largest trading partner of India during 2015-16.
- During 2015-16, India‘s bilateral trade with Chile stood at US$ 2.64 billion with exports at US$ 0.68 billion and imports at US$ 1.96 billion respectively.
- India has friendly relations with Chile and India’s exports to Chile are diverse. Chile also has been cooperating with India at the International fora.