Welcome to GKboard.in, your trusted source for current affairs updates tailored for competitive exams. Today, we explore the signing of the Terms of Reference (ToR) for the India-Chile Comprehensive Economic Partnership Agreement (CEPA), a major step in strengthening bilateral trade. This topic is crucial for aspirants preparing for exams like UPSC, SSC, Banking, and other government recruitment tests.
Signing of CEPA Terms of Reference
A Milestone in Bilateral Relations
On May 8, 2025, India and Chile signed the Terms of Reference (ToR) for the Comprehensive Economic Partnership Agreement (CEPA) in New Delhi. The agreement was signed by H.E. Mr. Juan Angulo, Ambassador of Chile, and Shri Vimal Anand, Joint Secretary, Department of Commerce, who is also the Chief Negotiator for the India-Chile CEPA.
Objectives of the CEPA
Enhancing Economic Integration
The India-Chile CEPA aims to build on the existing Preferential Trade Agreement (PTA) and cover a broader range of sectors, including digital services, investment promotion, MSMEs, and critical minerals. The agreement seeks to enhance economic integration and foster cooperation, boosting employment, investment, and exports for both nations.
Upcoming Negotiations
First Round in May 2025
Both countries expressed their commitment to a balanced and mutually beneficial CEPA. The first round of negotiations is scheduled for May 26-30, 2025, in New Delhi. This follows a shared vision to deepen bilateral relations and unlock the full potential of their trade relationship.
History of India-Chile Trade Relations
Strong and Growing Ties
India and Chile are strategic partners with cordial relations. A Framework Agreement on Economic Cooperation was signed in January 2005, followed by a Preferential Trade Agreement (PTA) in March 2006. An expanded PTA took effect on May 16, 2017, and further negotiations occurred between 2019-2021. The CEPA builds on these efforts to strengthen economic ties.
Strategic Vision
Leadership Commitment
The CEPA aligns with the vision reaffirmed during the State visit of Chilean President H.E. Mr. Gabriel Boric Font to India from April 1-5, 2025, at the invitation of Prime Minister Narendra Modi. Both leaders emphasized trade and commerce as a pillar of bilateral relations and welcomed the ToR signing to launch CEPA negotiations for a comprehensive and ambitious agreement.
Economic Impact
Unlocking Trade Potential
The India-Chile CEPA is expected to boost bilateral trade by facilitating investment promotion and cooperation. A Joint Study Group (JSG) report, finalized on April 30, 2024, highlighted the potential for deeper economic engagement. The CEPA will create new opportunities for growth and enhance trade frameworks for both nations.
Why This Matters for Competitive Exams
Key Takeaways for Students
The India-Chile CEPA is a significant topic for competitive exam aspirants, as questions on international trade, bilateral agreements, and economic cooperation frequently appear in exams like UPSC, SSC, and Banking. Focus on the CEPA’s objectives, negotiation timeline, and India-Chile trade history to excel in your preparation.
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Posted on: May 9, 2025