In a promising development for international economic cooperation, India and Chile have officially signed the Terms of Reference (ToR) to begin negotiations for a Comprehensive Economic Partnership Agreement (CEPA), signaling a deepening of their long-standing and friendly bilateral relationship. The agreement, signed on May 8, 2025, marks a significant milestone in the journey of the two nations as they look to enhance trade and investment ties through a modern and inclusive framework.
The ToR was formally signed by H.E. Mr. Juan Angulo, Ambassador of Chile to India, and Shri Vimal Anand, Joint Secretary in the Department of Commerce and India’s Chief Negotiator for the CEPA. Both representatives expressed optimism and mutual commitment toward building a stronger and more dynamic economic partnership. The first round of negotiations is scheduled to take place in New Delhi from May 26 to 30, 2025, and is expected to lay the groundwork for a comprehensive agreement that addresses a wide array of sectors.
This new CEPA is set to build upon the Preferential Trade Agreement (PTA) already in place between the two countries, aiming to broaden the scope to include digital services, MSMEs, investment cooperation, and critical minerals—sectors that are vital for sustainable economic growth and global competitiveness. The proposed agreement reflects the shared vision of India and Chile to move beyond traditional trade models and craft a partnership that is future-focused, inclusive, and mutually rewarding.
India and Chile have enjoyed warm and cordial ties for decades, with economic and commercial relations playing a central role in their bilateral engagement. The foundation was laid in January 2005 with the signing of a Framework Agreement on Economic Cooperation, followed by the PTA in 2006. Over the years, these ties have only grown stronger, with successive agreements and steady trade expansion reflecting a shared trust and vision for development.
A significant step came in 2016 with an expanded PTA, which became effective in 2017. Further negotiations took place between 2019 and 2021 to broaden this agreement. Recognizing the growing potential in their partnership, both countries agreed to move toward a CEPA, a recommendation that emerged from the Joint Study Group (JSG) established under the original framework agreement. The JSG report, finalized in April 2024, served as a critical foundation for the current negotiations.
The renewed momentum was further reinforced during the recent state visit of the President of Chile, H.E. Mr. Gabriel Boric Font, to India in April 2025. Hosted by Prime Minister Narendra Modi, the visit underscored the shared belief that trade and economic cooperation form a strong pillar of India-Chile relations. The signing of the ToR during this period is seen not just as a formal step, but as a reflection of the mutual goodwill and determination to unlock new economic opportunities for the people of both nations.
With the CEPA negotiations now set in motion, India and Chile stand at a hopeful crossroads. This agreement holds the promise of deeper economic integration, increased employment opportunities, and a strengthened partnership that could serve as a model for South-South cooperation in the years to come.