Govt approves expansion of PTA with Chile

With an aim to help in doubling of exports to the Lain American nation in near future, the Cabinet, chaired by Prime Minister Narendra Modi has given its approval for the expansion of the Preferential Trade Agreement (PTA) between India and Chile.

Under the expansion of the PTA, Chile has offered concessions to India on 1,798 tariff lines with Margin of Preference (MoP) ranging from 30-100 per cent, with India reciprocating on 1,031 tariff lines with MoP at 10-100 per cent. Under the proposed expanded PTA, 86 per cent of India's exports to Chile will get covered with concessions, which is likely to result in doubling of India’s exports in future.

PTA between both the countries was signed in March 2006 and came into effect from August 2007. In 2006-07, Chile was ranked 51st export destination for India when the bilateral trade was $2.3 billion. The dynamics changed after the PTA came into force from September 2007, pushing up the growth figure to 58.5 per cent between 2006-07 to 2014-15.  During 2014-15, the trade came in at $3.65 billion, with exports at $0.57 billion and imports at $3.08 billion, respectively.

India's export basket with Chile is diversified and further keeping a view the wide variety of tariff lines offered by Chile, the expanded PTA would immensely benefit India. Chile has been cooperating with India at various International fora and this expansion of PTA will enhance the trade and economic relations between the two countries.