India and Chile Sign Terms of Reference to Launch CEPA Talks, Ushering in a New Era of Economic Cooperation

In a meaningful step toward deepening their economic partnership, India and Chile have signed the Terms of Reference (ToR) for launching negotiations on a Comprehensive Economic Partnership Agreement (CEPA). The agreement was formalized on May 8, 2025, reflecting a shared commitment to strengthening the longstanding and warm ties between the two nations.

 

The ToR was signed by Chile’s Ambassador to India, H.E. Mr. Juan Angulo, and Shri Vimal Anand, Joint Secretary in India’s Department of Commerce, who also serves as the Chief Negotiator for the CEPA. This agreement marks a pivotal moment in India–Chile relations, as both sides prepare for the first round of CEPA negotiations scheduled from May 26 to 30 in New Delhi.

 

The envisioned CEPA seeks to build upon the existing Preferential Trade Agreement (PTA) and will cover a wide spectrum of areas, including digital services, investment cooperation, MSME support, and critical minerals. The goal is to foster greater economic integration and offer new avenues for collaboration that benefit businesses, workers, and communities in both countries.

 

India and Chile have enjoyed a steady and warm diplomatic relationship over the years. Their economic ties have evolved through a series of foundational agreements, beginning with the Framework Agreement on Economic Cooperation in 2005 and the PTA in 2006. These early efforts were further strengthened with an expanded PTA signed in 2016, which came into force in 2017, and follow-up discussions held between 2019 and 2021.

 

This journey toward a CEPA was guided by the recommendations of a Joint Study Group, established under the Framework Agreement, which concluded its work with a comprehensive report signed on April 30, 2024. The decision to proceed with CEPA negotiations is a reflection of the mutual understanding that trade and economic cooperation are powerful tools for national development and shared prosperity.

 

The recent state visit of Chilean President Gabriel Boric Font to India in April 2025 further underscored the importance of this relationship. During the visit, both Prime Minister Narendra Modi and President Boric reaffirmed their commitment to deepening trade and investment links, recognizing these as key pillars of bilateral engagement.

 

As both nations embark on the path to a more ambitious economic partnership, the CEPA symbolizes not just a policy milestone but a promise of inclusive growth, cooperation, and enduring friendship between India and Chile.