Domestic products such as textiles and chemicals would get greater market
access in Chile as the expanded preferential trade agreement between India and
the South American nation came into effect from May 16.
Under this expanded preferential trade agreement (PTA), both the countries
have offered to lower or eliminate duties on a number of items traded with each
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, to Indian exporters as compared to 178 items earlier.
On the other hand, India has offered concessions to Chile on 1,031 products
including meat items, fish, vegetable oil, processed food, pharma, plastic and
pearls as against 296 earlier.
"With this pact coming into force, we are going to see a big growth in
the bilateral trade," Commerce Secretary Rita Teaotia said.
Over 96 per cent of the total trade between the two countries is now
covered by this agreement.
Meanwhile, the Commerce Ministry in a statement said that 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
Chile is the fourth largest trading partner of India in Latin American
region after Brazil, Venezuela and Argentina.
It also said that during the last few years, bilateral trade has been in
favour of Chile because of import of high volume of copper ore which constitute
more than 88 per cent of the imports from Chile.
It added that keeping in view that Chile is the founding member of the
Pacific Alliance to which India is an observer member, implementing the
expanded PTA could deepen its engagement with the emerging trade bloc.