The Hindu Business Line : India, Chile ink trade pact

Mr S. N. Menon, Secretary, Ministry of Commerce and Industry, exchanging documents with Mr Jorge Heine, Ambassador of Chile, after signing PTA in the presence of the Commerce Minister, Mr Kamal Nath, and the Minister of State, Mr Jairam Ramesh, in the Capital on Wednesday. — Ramesh Sharma

New Delhi , March 8

India and Chile today opened a new chapter in their economic relations by forging a preferential trade agreement (PTA) that enables exchange of goods on concessional rates of duty in a bid to boost bilateral trade.

The PTA was signed by Mr S.N. Menon, Commerce Secretary, and Mr Jorge Heine, Ambassador of Chile in India, in the presence of Union Commerce and Industry Minister, Mr Kamal Nath, and the Minister of State for Commerce, Mr Jairam Ramesh.

Mr Nath said that the PTA would take bilateral trade to a higher plane as the next few years would witness a substantial growth in two-way trade. In 2004-05, total trade between India and Chile stood at $447.54 million, an official release said here.

The PTA provides tariff preferences ranging from 10 to 50 per cent on 178 tariff lines at the 8-digit level of commodity classification to Chile and a similar range of preferences on 296 tariff lines at the 8-digit level to India. It would benefit 98 per cent of the items being exported by Chile to India and 91 per cent of the goods being exported by India to Chile currently.

The Indian products, which would benefit include textiles, chemicals, pharmaceuticals, engineering and agricultural machinery.

The Chilean products benefiting from the PTA cover include copper, cellulose, newsprint, iodine, fishmeal, wood boards, planks and salmon.

Free trade pact

Both sides also reviewed the draft reports of the Joint Study Group and resolved to submit the findings to their respective governments to consider further action on a Free Trade Agreement as a successor to the PTA later on.

Chile has been one of India's major trading partners in Latin America and the Government of India attaches a great deal of significance to promoting commercial ties with Chile, Mr Nath noted.

Mr Nath said for both India and Chile, the availability of clean energy technologies, IT-enabled services, peaceful uses of outer space, access to low-cost medicines and harvesting ocean resources remain crucial. These are some areas where both countries could work together, he said adding that among non-traditional sector, scope exists for cooperation in fruits and vegetables or agro-based industries.