NEW DELHI – Chile and India signed on Tuesday an agreement to extend the Partial Scope Agreement (PSA) between the two countries to up to 2,800 trade items in what may be a boon for the South American country.
“This is a qualitative and quantitative leap, very important in our commercial relations,” said Chilean Ambassador Andres Barbe, who signed the agreement along with Indian Trade Secretary Rita Teaotia.
With the signing of the agreement, which according to diplomatic sources could be operational within the next two months, India and Chile may contemplate reductions and tariff exemptions for between 474 and 2,800 products.
According to the Indian Government in April, when it approved the extension of the agreement, 1,798 Indian trade items would have custom rebates between 30 to 100 percent, while India will apply tariff reductions between 10 and 100 percent for 1,031 Chilean products.
“It is an agreement that will mean a trade increase in general, it is attractive for both sides, for us to sell our products here and for India to invest and buy in Chile,” the diplomat told EFE from New Delhi.
He explained that India is interested in auto parts and the automobile industry, adding that the signing of the pact signifies Chile will have a greater presence in one of the world’s fastest growing markets.
The PSA, signed in 2006 and in effect since 2007, is the only agreement of its kind that India has with a Latin American country individually.
India is working on forming similar pacts with Peru and the Mercosur countries of Argentina, Brazil, Paraguay and Uruguay.
The extension is also a review of tariff barriers by incorporating new forecasts in relation to Technical Barriers to Trade and Sanitary and Phytosanitary Measures.
In 2015, Chile and India recorded a bilateral trade of $2.7 billion including $2 billion from exports from Chile, the largest producer of copper in the world.