India, Chile aim to finalise CEPA by year-end after fast-track talks

Commerce officials to visit Santiago this month for third round of CEPA talks, with focus on critical minerals and expanded market access

Trade talks — India had signed a framework agreement on economic cooperation with the South American nations in January 2005, followed by a PTA in March 2006. An expanded PTA was subsequently signed in September 2016 and became effective from May 16, 2017. (Illust

2 min read Last Updated : Oct 06 2025 | 11:54 PM IST

India and Chile are trying to fast-track talks, hoping to finalise the comprehensive trade deal by the end of the year, a person aware of the matter said.

A team of officials from the department of commerce will be travelling to Santiago, Chile, on October 25 for the third round of negotiations.

“There have also been discussions on market access. The offer list has been finalised and will be soon exchanged — before the next round of talks (in October),” the person cited above told Business Standard. India is also looking at a separate chapter on critical minerals.

Both countries held their first round of negotiations for a Comprehensive Economic Partnership Agreement (Cepa) in New Delhi only five months ago. The agreement aims to build upon the existing preferential trade agreement (PTA) between the two countries and seeks to encompass a broader range of sectors, including digital services, investment promotion and cooperation, micro, small and medium enterprises (MSMEs), and critical minerals, thereby enhancing economic integration and cooperation.

A comprehensive trade agreement with Chile is a part of India’s strategy to diversify trade partnership amid rising geopolitical polarisation. That apart, the idea also is to secure critical mineral supplies from the region.

India had signed a framework agreement on economic cooperation with the South American nations in January 2005, followed by a PTA in March 2006. An expanded PTA was subsequently signed in September 2016 and became effective from May 16, 2017. In April 2019, both countries agreed to pursue a further expansion of the PTA with three rounds of negotiations between the years during 2019-2021.India‘s bilateral trade with Chile stood at $3.75 billion, with exports at $ 1.15 billion and imports at $ 2.6 billion during the financial year 2024-25. India’s trade deficit with Chile stood at $1.45 billion.