Chilean President Gabriel Boric and Indian Prime Minister Narendra Modi announced formal negotiations for a Comprehensive Economic Partnership Agreement (CEPA) during bilateral talks in New Delhi this week.The deal aims to replace a limited 2007 trade pact, with both leaders instructing teams to finalize terms by 2025.
Bilateral trade reached $2.6 billion in 2022-23, with Chile exporting $1.44 billion in copper, lithium, and chemicals to India while importing $1.16 billion in pharmaceuticals and machinery.The new agreement seeks to expand market access for Chiles critical minerals, which hold strategic value for Indias renewable energy and electronics sectors.
Nearly 60% of global lithium reserves lie under Chiles Atacama Desert, while India imports over 90% of its lithium needs.The partnership includes a mining collaboration between Chiles state-owned Codelco and Indias Hindustan Copper Limited to share exploration technologies and processing expertise.Simultaneously, both nations signed their first Antarctic cooperation agreement, enabling joint climate research through Indias National Centre for Polar Studies and Chiles Antarctic Institute.Chile-India Talks Target Lithium, Trade Expansion, and Antarctic Cooperation.
(Photo Internet reproduction)Building on a 2017 expanded trade deal covering 2,800 products, the CEPA negotiations will address nontariff barriers and sustainable supply chains.
President Boric emphasized Chiles goal to move beyond raw material exports by adding value through Indian industrial partnerships.India-Chile PartnershipPrime Minister Modi cited Chile as Indias gateway to Latin America, noting untapped potential in defense manufacturing and agricultural technology.
The talks follow a 2023 G20 meeting where both leaders prioritized diversifying trade networks amid global instability.Chile currently ranks as Indias seventh-largest trading partner globally, while India stands as Chiles fifth-largest Asian market.
The agreement aligns with Indias strategy to secure critical minerals.
It also supports Chiles push to reduce reliance on traditional partners like China, which accounts for 39% of Chilean exports.Beyond commerce, the deal includes cultural initiatives like reciprocal yoga and traditional medicine programs.
Technical teams will meet quarterly to advance negotiations, with environmental protections and labor standards forming key discussion points.The partnership reflects shifting geopolitical priorities, combining Chiles resource wealth with Indias manufacturing ambitions to counterbalance dominant global supply chains.