You are here: Home » Economy & Policy » News
Business Standard

Government in FTA talks with Peru

India is in advanced level talks with Peru over a free trade agreement and is looking to facilitate greater trade with Chile

Subhayan Chakraborty  |  New Delhi 

Cranes in a port at Valparaiso, Chile. Image via shutterstock.com
Cranes in a port at Valparaiso, Chile. Image via shutterstock.com

The government is in advanced talks with over a proposed free trade agreement, Commerce Secretary Rita Teaotia said on Thursday. Speaking at the and Conclave organised by the Confederation of Indian Industry, she added an agreement facilitating more trade with Chile would soon be announced. Current annual trade with is $1.1 billion. Major exports involve automobiles and cotton. India imports minerals and precious metals like gold. The secretary called for more trade in mining, information technology and allied services, and environmental technology. The Vice President of was present at the event, as were the ministers of and industry from Nicaragua, and Ecuador. An estimated $45 bn is the total two-way trade India has with the Latin American and region, up from $3.7 bn a decade earlier. This is five per cent of our total international trade.

The government wishes to widen the scope of its preferential trade agreement (PTA) with the bloc (Brazil, Argentina, and Paraguay). India has partial admission in the regional bloc and about two-thirds of its total trade with the region is through this avenue. The should be re-examined because it is “limited in many ways”, said Teaotia. It came into force from June 1, 2009.

TRADE VOLUME
  • Current annual trade with is $1.1 billion
  • Major exports involve automobiles and cotton
  • Major imports include minerals and precious metals like gold
  • Call for more trade in mining, information technology and allied services, and environmental technology
  • Invitation for investment in mining in India, where 100 per cent foreign direct investment is allowed via automatic approval
  • $45 bn is the total two-way trade India has with the Latin American and region
  • The government wishes to widen the scope of its preferential trade agreement with the bloc (Brazil, Argentina, and Paraguay)
  • About two-thirds of India's total trade with the region is through the PTA
The secretary said despite almost $15 bn of investment by Indian companies, South America is one of India's smallest trade areas. and ONGC Videsh have sought exploration rights for oil and gas there, and are in the process of setting up refining facilities. Teaotia asked Latin American companies to participate in the 'Make in India' initiative. Inviting investment in mining, she said India allows 100 per cent foreign direct investment in the sector, via the automatic approval route.

Pharmaceutical companies like are also active in the region which is a hub for the industry.

The Vice President of along with ministers of and industry from the countries of Nicaragua, Uruguay and Ecuador, were present at the event.

First Published: Fri, October 09 2015. 00:40 IST
RECOMMENDED FOR YOU