10 months ago
India and Chile Advance FTA Talks, Focusing on Critical Minerals
India and Chile are getting ready to talk again about a trade deal.
They met recently in Chile and will likely meet for a fourth time next month, possibly in India.
The main thing they are discussing is a special part of the deal about important minerals like copper and lithium.
India really wants to make sure it can get these minerals easily because they are needed for making things like electric cars and solar panels.
Chile has a lot of these minerals.
They also talked about other parts of the deal, like buying and selling goods, services, and how businesses can invest.
Trade between the two countries is growing, but India buys a lot more from Chile than it sells to Chile right now.
India and Chile are preparing for the fourth round of Free Trade Agreement (FTA) talks next month.
The negotiations include a significant focus on a chapter covering critical minerals essential for India's clean-tech and manufacturing industries.
India is keen to secure long-term supplies of minerals like copper and lithium, citing concerns over supply security.
Chile is a major global supplier of copper and lithium, holding significant reserves.
Bilateral trade in 2024-25 saw India's exports to Chile at $1.15 billion and imports at $2.60 billion.
- Who
- India and Chile
- What
- Negotiating a Free Trade Agreement (FTA) with a focus on critical minerals.
- Where
- Negotiations are anticipated to be held in India.
- When
- The fourth round of talks is expected next month, following meetings in late October.
- Why
- To deepen economic ties, secure vital mineral supplies for India's industrial sectors, and potentially improve the trade balance.
India's Goals
Chile's Position
Critical Minerals Access
India's Goals
India is prioritizing the inclusion of a chapter on critical minerals in the FTA to secure long-term supplies of inputs like copper and lithium for its clean-tech and advanced manufacturing sectors. This is driven by concerns over supply security and potential export controls from other countries.
Chile's Position
While Chile's specific negotiating stance on minerals isn't detailed, its participation in the FTA and its position as a major global supplier of copper and lithium suggest an interest in facilitating trade and strengthening economic ties with India.
Trade Balance
India's Goals
India aims to potentially balance its trade deficit with Chile, where imports ($2.60 billion in 2024-25) significantly outweigh exports ($1.15 billion).
Chile's Position
Chile benefits from substantial exports to India, particularly in minerals, indicating a favorable trade balance from its perspective in the current trade relationship.
Key facts
- Next Negotiation Round
- Fourth round expected next month
- Previous Negotiation Round
- Third round held in Santiago, October 27-30
- Proposed Agreement Type
- Free Trade Agreement (FTA) / Comprehensive Economic Partnership Agreement (CEPA)
- Key Focus Area
- Critical minerals (e.g., copper, lithium), trade in goods and services, investment, intellectual property
- Bilateral Trade (2024-25)
- India's exports to Chile: USD 1.15 billion; India's imports from Chile: USD 2.60 billion
- India's Strategic Interest
- Securing supply chains for clean-tech and advanced manufacturing sectors
- Chile's Mineral Resources
- Top copper reserve holder, major lithium supplier
Quotes
An official
An official involved in the trade negotiations.
“India's growing trade engagement with Chile reflects its strategic focus on building stronger partnerships with the Latin American region through mutually beneficial and comprehensive economic cooperation frameworks.”
freepressjournal.in
“The next round of negotiations between India and Chile on the proposed free trade agreement is expected to be held in December here.”
freepressjournal.in
Sources
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