India – Chile Expanded PTA to Come into Effect on 16 May (Download PDF)

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India and Chile will implement a bilateral expanded Preferential Trade Agreement (PTA) from May 16. The first preferential Trade Agreement (PTA) between India and Chile was signed on 8 March 2006.

Image of the India – Chile expanded PTA

Image of the India – Chile Expanded PTA

Image of the India – Chile expanded PTA

Highlights:

  • The original PTA had a limited number of tariff lines
  • India’s offer list to Chile consisted of only 178 tariff lines
  • Chile’s offer list to India contained 296 tariff lines at 8-digit leve
  • Chile has offered duty concessions on as many as 1,798 goods such as

    • Agri items
    • Chemicals
    • Pharmaceuticals
    • Plastics
    • Textiles
    • Apparel
    • Iron and steel items
    • Copper machinery
  • India has offered concessions to Chile on 1,031 products including
    • Meat items
    • Fish
    • Vegetable oil
    • Processed food
    • Pharma
    • Plastic
    • Pearls
  • Around 96 % of the total bilateral trade has been covered by this agreement
  • The expanded PTA would immensely benefit both sides as a wide array of concessions has been offered by the two countries on a number of products which will facilitate more trade.
  • Among India’s largest trading partners in LAC, Chile comes fourth after Brazil, Venezuela and Argentina.
  • India’s bilateral trade with Chile reached $3.7 billion during 2014 - 15
  • India’s exports to Chile include

    • Transport equipment
    • Drugs and pharmaceuticals
    • Polyester fibre yarn
    • Tyres and tubes
    • Apparel
    • Sports goods
    • Handicrafts
  • Major imports from Chile are

    • Copper ore and concentrates
    • Iodine
    • Copper anodes
    • Copper cathodes
    • Molybdenum ores and concentrates
    • Fruits and nuts

India and Chile Trade Relations

  • Chile was the first country in South America to sign a trade agreement with India, in 1956.
  • India’s bilateral trade with Chile stood at $2.6 billion with exports at $0.68 billion and imports at $1.96 billion respectively in FY16.
Map showing the location of India and Chile

Map Showing the Location of India and Chile

Map showing the location of India and Chile

Preferential Trade Agreement (PTA)

  • Preferential Trade Agreements (PTAs) have been proliferating, especially since the establishment of the World Trade Organisation (WTO) in 1994.
  • As of 1st December 2015, the WTO had received notifications of no less than 619 PTAs (disaggregated by goods, services, or accessions), of which 413 were already in force.
  • All WTO members except Mongolia have concluded at least one PTA.
Image of the various types of PTA

Image of the Various Types of PTA

Image of the various types of PTA

- Published/Last Modified on: May 21, 2017

Economy

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