Cabinet approves expansion of India-Chile Preferential Trade Agreement

New Delhi, Apr 21 (KNN) Government has given its approval for expansion of India - Chile Preferential Trade Agreement (PTA) keeping in view India's diversified export basket with Chile.

The Union Cabinet, chaired by the Prime Minister Narendra Modi, has nodded for expansion of India - Chile PTA between India and Chile.

Keeping in view the wide variety of tariff lines offered by Chile, the expanded PTA would immensely benefit India, Union Cabinet said in a release on Wednesday.

Under the expanded PTA, Chile has offered concessions to India on 1798 tariff lines with Margin of Preference (MoP) ranging from 30%-100% and India has offered concessions to Chile on 1031 tariff lines at 8-digit level with MoP ranging from 10%-100%.

Under the proposed expanded PTA, 86% of India's exports to Chile will get covered with concessions, which is likely to result in doubling of our exports in the near future. 

A PTA between India and Chile was signed in March, 2006. The said PTA came into force with effect from August, 2007. During 2006-07, Chile was ranked 51st export destination for India. Bilateral Trade during the year 2006-07 was US$ 2.3 billion. Trade dynamics changed after the PTA came into force from September 2007. Bilateral trade registered a growth of 58.49% from 2006-07 to 2014-15. Bilateral trade during 2014-15 stood at US $ 3.65 billion with exports at US $ 0.57 billion and imports at US$ 3.08 billion respectively. 

India has friendly relations with Chile. Chile has been cooperating with India at the International fora and expansion of India Chile PTA will enhance the trade and economic relations between the two countries. The expansion would be an important landmark in India-Chile relations and consolidate the traditional fraternal relations that have existed between India and LAC countries. (With PIB Inputs)