India and Chile expanded preferential trade agreement
The agreement was signed by commerce secretary of India, Rita Teaotia, and the ambassador of Chile to India, Andrés Barbé, in New Delhi.
The agreement holds great importance as it deepens the agreement signed in 2007, which is the only bilateral trade agreement of India with any Latin American country.
This expansion implies the inclusion of around 2,800 products from the 474 products that were placed under the original agreement.
Furthermore, this expansion has incorporated new chapter corresponding to technical barriers to trade and sanitary and phytosanitary measures, which would contribute to eliminate the non-tariff barriers.
A PTA between India and Chile was earlier signed in March 2006 and came into force from August, 2007.
In the original PTA concluded in March 2006, India’s offer list to Chile consisted of 178 tariff lines, the margin of preference (MoP) ranging from 10 percent-50 percent at an eight-digit level and Chile’s offer list to India consisted of 296 tariff lines with an MoP ranging from 10 percent to 100 percent at an eight-digit level.
Under the expanded PTA, Chile has offered concessions to India on 1,798 tariff lines with an MoP ranging from 30 percent-100 percent, and India has offered concessions to Chile on 1,031 tariff lines at an eight-digit level with the MoP ranging from 10 percent to 100 percent.
India’s export basket to Chile is diversified and keeping in view the wide variety of tariff lines offered by Chile, the expanded PTA would immensely benefit India.
Among the LAC countries, Chile was the third-largest trading partner of India during 2015-16. India’s bilateral trade with Chile stood at $ 2.64 billion, with exports at $0.68 billion and imports at $1.96 billion, during 2015-16. ■