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PTA ratified by Chilean Congress, to become effective soon

Our Bureau

Kolkata, July 15 Seeking stronger trade ties with India, particularly in the area of information technology, Dr Jorge Heine, Ambassador of Chile to India, said the Preferential Trade Agreement with India (signed in 2006, and covering 300 products on both sides) has been ratified by the Chilean Congress and should become effective within the next few weeks.

Addressing an interactive session organised by the Merchants Chamber of Commerce (MCC) here today, he attributed the success of Chile’s total exports (of $60 billion), nearly half of India’s exports, to 54 FTAs signed with as many countries allowing market access to Chilean products, particularly minerals such as copper.

Pointing out that Chile’s exports to India have grown exponentially from $230 million in 2003 to $1.7 billion last year, he said, “We expect Chilean exports to India to exceed the figure of $ 2 billion in 2007”. India has graduated to the 10th position (as Chile’s trading partner) globally from 20th in 2003, “and our exports to India are more than that to Germany, the UK and Spain”.

India’s exports to Chile last year were around $180 million, covering items such as chemicals, textiles, clothing, pharmaceuticals, agricultural machinery and engineering services, indicating the huge potential waiting to be tapped.

Admitting there was a big gap as far as India’s exports to Chile was concerned, he said the Preferential Trade Agreement would be a big plus to both the countries. Under the PTA, India will give preferential treatment to Chilean copper (Chile accounts for a fourth of world production of copper), cellulose, newsprint, fishmeal, woodboards and planks, salmon and iodine.

India and Chile are expected to collaborate on clean energy technology, exchange of IT services and support, generic medicine development, rational use of marine resources and exchange of agricultural technology. Indian companies such as TCS are already working in Chile, and those like i-Flex Solutions are already looking at the Chilean market closely.

Dr Heine said despite holding a trade surplus with India, Indian products, particularly the Maruti 800 cars, were very popular in Chile. Geographical distances warranting high freight costs, he felt, should not act as a deterrent to greater trade between the two nations, considering the highly globalised world of today.

Many Indian products would suit the income levels of the Chilean population, he added. Chile has a per capita income of $ 9,000.

Dr Heine cited defence ties as one of the key future areas of cooperation with India, following the signing of a MoU in January this year between the two countries. He said the first step would be appointment of Defence Attaches in the respective countries.

Asked on export of Chilean wine to India, the Ambassador said the duty levels in India were too stiff at 250 per cent.

Earlier, in his welcome address, Mr Atul Churiwal, President of MCC, said West Bengal offered great opportunities and incentives for trade and investments in thrust areas such as food-processing, leather goods, garments, textile yarn and fabrics and IT.

More Stories on : Foreign Trade | West Bengal

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