However, both sides remain keen on ironing out the “sticking points” and concluding the trade deal by October, the official added.
“Chile has asked for market access in gold, salmon, wine, apple, walnut, avocado, and some other fruits and berries,” the official said.
While New Delhi may agree to give concessions on fruits and wine through quotas or a minimum import-price mechanism to ensure their landing price remains higher than the domestic price, Santiago is seeking the maximum possible concession on these products, the official said.
“Chile is willing to give tariff concessions to India on over 90 per cent tariff lines, while India is likely to offer duty cuts on around 70 per cent lines,” the official said. “They are fine with access on even 60 per cent tariff lines, as long as the products of their interest get covered in the Cepa.”
Being among the world’s top-five wine producers, Chile is particularly keen on securing market access for its wine exports, the official added.
The general election and the change in the government in Chile also delayed the trade deal negotiations, the official said. The new administration--led by Chilean President Jose Antonio Kast--is equally interested in finalising the agreement, the official added.
Chilean Foreign Minister Francisco Pérez Mackenna led a high-level delegation to India last month. During the visit, Chile’s Vice-Minister of International Economic Relations, Paula Estevez, met India’s Commerce Secretary Rajesh Agrawal to discuss modalities for the early conclusion of the trade pact.
The two sides have already concluded negotiations on nearly 80 per cent of the agreement, the official said. The remaining issues largely relate to critical minerals and market access, the official added.
India is simultaneously pursuing negotiations for a trade deal with other partners in Latin America, including Peru and the MERCOSUR bloc.
India is seeking to expand its existing preferential trade agreement with MERCOSUR -- comprising Argentina, Brazil, Paraguay, Uruguay, and Bolivia -- into a full-fledged free-trade agreement.
“We aim to finalise the terms of reference for an FTA with them in a month or two,” the official said.
Talks with Peru, however, are currently on hold, with India awaiting the formation of a new government, following the Latin American nation’s presidential run-off on Sunday. A delegation was expected from Lima in June, but that is likely delayed now, the official said.
FTA with trade partners in Latin America is part of India’s broader strategy to diversify its sources of critical minerals beyond China. New Delhi is particularly interested in securing access to key minerals such as copper and lithium found in the region.
Currently, China accounts for nearly 70 per cent of the global supply chain of rare-earth minerals. Beijing’s restrictions on exports of critical minerals and rare-earth magnets last year triggered shortages and disrupted production at automobile facilities in India and across the world.
Reflecting the growing economic engagement, India’s imports from Latin America rose 44 per cent in FY26 to $34.62 billion, driven by an 82 per cent jump in copper ore shipments and the commencement of gold imports from the region. India exported goods worth $16.36 billion to Latin America in the last financial year.
Sticking points
-
Chile seeking market access for wine, apples, walnuts, avocados, and other fruits and berries
-
It is pushing for the highest possible concessions as it is keen on greater access for its wine exports
-
India may offer limited concessions
-
Negotiations were also delayed by Chile’s election and change in government
 "India Chile (Photo: Pixabay)")