CHILE SIGNS PARTIAL FREE TRADE AGREEMENT WITH INDIA

The fifth and final round of trade negotiations between Chile and India ended successfully Tuesday with the initial signing of a partial free trade agreement (FTA). The treaty, if ratified by the countries’ parliaments, would reduce tariff rates on a wide range of important commercial exports.

Chilean Foreign Minister Ignacio Walker called the agreement “an important step in the international economic integration strategy of our country.”

The agreement calls for an immediate reduction on tariffs for 98 percent of Chilean exports to India and 91 percent of Indian exports to Chile. Current tariffs average about 30 percent, the new partial FTA would reduce this to an average of 20 percent on selected products.

Chile will be allowed to export 296 products to India under the agreement, including copper, lumber, salmon, seafood, chemicals and forestry products. India would be able to export 266 products including, textile, medicinal, automotive, and industrial goods.

Chile and India agreed on a partial trade agreement to help protect Indian domestic market growth.

“(A complete FTA) is a little premature,” said Walker. “However, our feasibility study leaves the possibility in the hands of both countries. Our stance is a (complete) FTA, but that requires a development and liberalization strategy on both sides.”

Chile’s President Lagos is expected to sign the agreement in the next few weeks, at which point the bill would be sent to Chile’s Congress. Legislatures are expected to sign the trade agreement into law when meet in January.