Preferential Trade Agreement Chile-India
Preferential Trade Agreement (PTA) between Chile and India
The Preferential Trade Agreement (PTA) between Chile and India was signed in March 2006 and came into effect in August of the same year. This agreement has been an important milestone in the economic relationship between these two countries.
The PTA between Chile and India is a bilateral agreement that aims to reduce or remove trade barriers and increase economic cooperation between the two countries. This agreement is designed to promote and facilitate trade and investment between Chile and India and to encourage the development of trade in goods and services.
The PTA covers a wide range of products and services, including agriculture, fisheries, textiles, chemicals, machinery, and IT services. Under this agreement, both countries have agreed to reduce or eliminate tariffs on a large number of goods and services trade between them.
The PTA has also facilitated the establishment of a Joint Study Group (JSG) to identify potential areas of cooperation between Chile and India. The JSG has identified a number of areas of cooperation, including trade in services, investment, tourism, and technical cooperation.
Since the PTA came into effect, there has been a significant increase in the volume of trade between Chile and India. In the first year alone, bilateral trade increased by more than 80%, from $259 million in 2005 to $469 million in 2006. In the following years, trade between the two countries continued to increase steadily, reaching a peak of $2.2 billion in 2019.
The PTA has also had a positive impact on investment between Chile and India. Since the agreement came into effect, Indian companies have invested heavily in Chile, particularly in the IT and pharmaceutical sectors. Chilean companies have also invested in India, particularly in the mining and energy sectors.
In conclusion, the Preferential Trade Agreement between Chile and India has been a significant milestone in the economic relationship between these two countries. It has facilitated a significant increase in trade and investment and is expected to continue to have a positive impact on their economic relations in the years ahead.