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.