Chile India Free Trade Agreement
Chile India Free Trade Agreement: A Step Towards Strengthening Bilateral Relations
India and Chile are two nations with several similarities and shared values. They are both democracies, have fast-growing economies, and are emerging players in the global marketplace. The recent signing of the Chile India Free Trade Agreement (FTA) is a critical step towards strengthening the bilateral relationship between the two nations.
The Chile India FTA was signed on 6th September 2021, after nearly a decade of negotiations between the two countries. It is a comprehensive agreement covering trade in goods, services, and investments. The FTA is expected to boost bilateral trade between India and Chile, which had already increased from US$ 0.5 billion in 2004 to US$ 2.8 billion in 2019.
The FTA will provide greater market access to Indian and Chilean businesses, reduce trade barriers, and promote investment flows. The agreement covers various sectors, including agriculture, pharmaceuticals, textiles, leather, and chemicals. It will enable Indian exporters to access the Chilean market, which is a gateway to the Latin American market, while Chilean exporters will have greater access to the 1.3 billion Indian market.
The agreement will also provide a level playing field for Indian and Chilean businesses. It will help Indian companies to compete with other countries, such as China and Japan, which already have free trade agreements with Chile. The FTA will also help the two nations to diversify their trade and reduce their dependence on traditional partners.
The FTA is expected to strengthen economic ties between the two nations and promote greater people-to-people contact. It will also provide a platform for India to engage with other countries in Latin America. The FTA will encourage Indian companies to invest in Chile and vice versa, leading to greater job opportunities and economic growth in both countries.
The agreement is a part of India`s larger strategy to increase its engagement with Latin America. India has been making efforts to strengthen its economic ties with the region and has signed FTAs with other Latin American countries, such as Peru and Mercosur. The FTA with Chile is an important milestone in India`s relations with the region.
In conclusion, the Chile India Free Trade Agreement is a significant step towards strengthening the bilateral relationship between India and Chile. It will provide greater access to each other`s markets, promote investment flows, and create new avenues for collaboration in various sectors. The FTA will help India to diversify its trade and engage more closely with Latin America. The agreement is a win-win for both countries and will contribute to their economic growth and prosperity.
