Archive · 20 Jul 2025
India Navigates Trade Deals Amidst China's Presence in Latin America
India is trying to make trade deals (FTAs) with Peru and Chile, but is worried about China.
India wants to make sure Chinese goods don't sneak into the Indian market through these deals.
They plan to add special rules to the deals to prevent this.
India is also keen on expanding its exports to Latin America.
India's officials are getting ready for trade talks with Peru and Chile.
China has existing trade deals with these countries.
This makes India want to be extra careful.
They are trying to make sure they protect themselves.
They need to make sure that what they are importing from Chile and Peru is actually from those countries and not from China.
India is negotiating free trade agreements (FTAs) with Peru and Chile.
China's presence in Latin America raises concerns for India regarding potential misuse of the FTAs.
India aims to incorporate stringent rules of origin to prevent Chinese goods from being re-routed through these agreements.
Talks with Chile and Peru are set to resume in August.
India seeks to diversify its export markets by focusing on Latin America.
- Who
- India is the primary actor, with involvement from officials in the Commerce Department, and stakeholders in Peru and Chile. China also plays a significant role.
- What
- India is negotiating free trade agreements (FTAs) with Peru and Chile, while also preparing against potential misuse by China.
- When
- The second round of FTA talks with Chile and the eighth round with Peru are scheduled for August.
- Where
- India is negotiating these FTAs with Peru and Chile in the context of trade in Latin America.
- Why
- India wants to expand its export markets and diversify its trade partners, while also protecting its markets from the potential re-routing of Chinese goods through FTAs.
India's Position
China's Trade Interests
Market Access and Trade Safeguards
India's Position
India seeks to establish FTAs to expand export markets.
China's Trade Interests
China's presence in Latin America poses a risk of goods being re-routed through FTAs.
- Countries in FTA Negotiations
- India, Peru, Chile
- India's Export to Latin America (FY25)
- $15.17 billion (approx. 3.5% of total exports)
- India's Exports to Chile (FY25)
- $1.15 billion
- India's Exports to Peru (FY25)
- $1 billion
- China's Imports from Peru (2024)
- $14.53 billion
- China's Imports from Chile (2024)
- $20.65 billion