India, Chile Sign ToR to Launch CEPA Negotiations

In a major step towards deepening their bilateral economic ties, India and officially signed the Terms of Reference (ToR) for negotiating a Comprehensive Economic Partnership Agreement (CEPA) on May 8, 2025. This landmark development marks a pivotal moment in the economic engagement between the two strategic partners, aiming to expand and diversify their trade and investment cooperation across a broader range of sectors.

The ToR was signed in New Delhi by H.E. Mr. Juan Angulo, Ambassador of Chile in India, and Shri Vimal Anand, Joint Secretary in the Department of Commerce, Ministry of Commerce & Industry, Government of India, who is also the Chief Negotiator from the Indian side. The agreement lays the groundwork for detailed negotiations to commence with the first round scheduled for May 26–30, 2025, in New Delhi.

Both nations reiterated their shared commitment to fostering deeper economic ties and enhancing mutual prosperity through a comprehensive and forward-looking agreement. The CEPA aims to build upon the existing Preferential Trade Agreement (PTA) between India and Chile and will incorporate new and emerging areas of trade such as digital services, investment promotion, micro, small, and medium enterprises (MSMEs), and cooperation in critical minerals.

Strengthening a Long-Standing Economic Partnership

and Chile have enjoyed warm and cordial diplomatic and economic relations, with steady growth in bilateral engagement over the decades. Their economic cooperation formally began with the signing of a Framework Agreement on Economic Cooperation in January 2005, followed by a Preferential Trade Agreement (PTA) in March 2006. These foundational agreements laid the path for deeper engagement through trade facilitation and economic collaboration.

In September 2016, an expanded PTA was signed to enhance market access, which came into effect on May 16, 2017. Further progress was seen in April 2019 when both nations decided to initiate talks for a broader trade arrangement. Between 2019 and 2021, three rounds of discussions were held to explore the potential for an upgraded economic partnership. These efforts were backed by recommendations from a Joint Study Group (JSG) formed under the original framework agreement. The JSG report was finalized and signed on April 30, 2024, setting the stage for CEPA negotiations.

A Shared Vision for Growth and Integration

The signing of the ToR for CEPA comes shortly after the State Visit of Chilean President Gabriel Boric Font to India from April 1–5, 2025, at the invitation of Indian Prime Minister Shri Narendra Modi. During this high-level exchange, leaders from both sides emphasized the critical role of trade and commerce in their bilateral relationship and underlined the importance of expanding the current trade framework to explore untapped potential in emerging sectors.

The leaders welcomed the agreement on the ToR and the upcoming launch of CEPA negotiations as a historic opportunity to build a balanced, ambitious, comprehensive, and mutually beneficial partnership that reflects the evolving global economic landscape.

Expanding Horizons: Key Areas of Focus Under CEPA

The CEPA seeks to move beyond traditional trade agreements and will cover a broader scope, including but not limited to:

• Digital Economy and Services Trade
• Promotion of Bilateral Investment
• MSME Cooperation and Capacity Building
• Sustainable Mining and Critical Minerals
• Innovation, Technology, and Start-up Collaboration
• Market Access Expansion in Goods and Services

By creating a more inclusive and strategic economic partnership, CEPA aims to boost employment, facilitate investment, enhance exports, and promote joint ventures and collaborations in high-potential areas. This comprehensive framework is expected to deepen economic integration between South America and South Asia, offering diversified trade routes and supply chain alternatives.

Looking Ahead

As India and Chile move toward the first round of CEPA negotiations, expectations are high for a transformative agreement that not only enhances trade volumes but also strengthens institutional and people-to-people ties. The signing of the ToR is a strong reflection of mutual trust and a shared vision to capitalize on emerging global economic trends.

With both governments showing strong political will and strategic alignment, the India-Chile CEPA promises to be a landmark agreement in India’s growing trade footprint in Latin America and in Chile’s diversification strategy within the Asia-Pacific.