April 12, 2021
Foreign Trade

Round of negotiations finalizes for deepening the Partial Scope Agreement between Chile and India

Round of negotiations finalizes for deepening the Partial Scope Agreement between Chile and India
In an effort to deepen and expand their bilateral trade relations, last Friday Chile and India finalized the second round of negotiations for deepening the Partial Scope Agreement (PSA). This round was carried out virtually on April 8 and 9.

The delegations were led by the Bilateral Economic Affairs Director of the International Economic Relations Undersecretary's Office (SUBREI), Felipe Lopeandía, in representation of Chile, and the Joint Secretary of the Department of Commerce at the Ministry of Commerce and Industry, Suresh Kumar, in representation of India.

“Both parties showed a willingness to accelerate the negotiation process, working in additional sessions between rounds and setting deadlines with specific objectives for each group, in order to conclude the process as soon as possible,” said Felipe Lopeandía.

Similar to the first round of negotiations, which was held in person on December 10 and 11, 2019, in New Delhi, India, on this occasion, sessions were held with negotiator groups representing Market Access, Rules of Origin, Sanitary and Phytosanitary Measures and Technical Barriers to Trade. This round also included the Services negotiator group.

Chile has had a Partial Scope Agreement (PSA) in place with India since 2007, and although this agreement was updated in 2017, the Bilateral Economic Affairs Director indicated that “there is still room to grow.”

In August 2019, as part of a tour of India, the International Economic Relations Undersecretary, Rodrigo Yáñez, and the Commerce Secretary of India, Anup Wadawan, signed the terms of reference for deepening the trade agreement between the two countries.

Bilateral trade

India is the fifth largest economy on the planet with a GDP of US$2.5 trillion. With 1.381 billion inhabitants, it is the second most populated country in the world. India is a service-oriented emerging market economy, which has achieved large-scale development in information technology and the pharmaceutical and automobile industries.

In 2020, our trade with India reached US$1.5 billion, making it our 17th biggest trading partner. A total of 300 Chilean companies exported to India in 2020, sending a total of 220 products and services worth US$754 million in operations, notably copper, molybdenum, iodine, walnuts, wood pulp, gold, lithium, kiwi fruit, apples, cherries and grapes. Likewise, 1,850 Chilean companies imported over 2,015 products from India, totaling US$716 million, particularly automobiles, medications, caffeine, cumin, pigments, footwear, rice and multiple textiles.