Chile to sign trade agreement with India
Economic Times | 11 May 2009
Chile to sign trade agreement with India
KOLKATA: Chile which favours free trade agreements with as many countries as possible to boost its overall trade volume, does not see any problem if a similar kind of trade agreement is signed with India.
This was indicated by Chilean ambassador to India Alfonso Silva Navarro, while presiding over a discussion on "Indo-Chile business cooperation", organised on Monday by Bengal National Chamber of Commerce & Industry (BNCCI).]
While pursuing steadfastly a policy of free market economy, Chile has pitched for signing FTA with as many countries as possible. In pursuing this, it has signed a host of FTAs with a large number of countries including regions like Latin America, EU, the US, Canada, Australia, China, Japan and South Korea.
Countries having FTA with Chile enjoy zero or the lowest customs duties for many of their products entering Chile. Plus, the trade pact has enabled them to access a 50-million strong Latin American market though Chile. On Contrary, Indian products are devoid of such advantages. At present, Indo-Chile trade is covered by the ‘Partial Trade Agreement’ (PTA).
In Chile, many companies in the private sector are eager to have an FTA with India. From the Indian side, business fora like CII and BNCCI can start exploring the advantages which can be enjoyed by Indian companies if an FTA with Chile is signed, suggested the ambassador.
India’s exports to Chile are restricted from growing because of tariff disadvantages vis-à-vis other FTA partners. Chile’s exports to India suffer from similar restrictions. If both countries lower tariff barriers, there are huge prospects for multiplying bilateral trade in copper, wine, acquaculture products, processed food and forestry products, hinted Mr Navarro.
According to latest statistics available, Indo-Chile two-way trade in 2007-08 was $2,093.35 million, constituting 0.50% of India’s total trade. While India’s exports to Chile amounted to $249.61 million, constituting 0.15% of India’s total exports. Imports from Chile was to the tune of $1,843.74 million, constituting 0.73% of India’s total import.
