Guwahati: India and Chile have traditionally maintained an excellent and growing relationship, built on the foundations of rapidly growing economic links and other mutually held values in international diplomacy. The Preferential Trade Agreement implemented between the two in 2006 has transformed the partnership, fostering an increase in bilateral trade, particularly exports from Chile in products such as fruits, nuts, and wines. Both countries are exploring new opportunities to improve their relationship further in science & technology, defence and cultural exchange. Chile supports India's bid for a permanent UNSC seat, indicating a positive prospect for both countries in seeking better cooperation across diverse sectors.
Juan R. Angulo Monsalve, Ambassador of Chile to India, recently spoke with Business North East (BNE) about the expanding trade ties between Chile and India, with special emphasis on agriculture. During the interview, the envoy from the Ministry of Foreign Affairs of Chile highlighted the complementary aspects of commerce between the two countries and discussed the principal areas of cooperation.
Angulo explained that Chile and India share significant interests in the agricultural sector despite being in opposite hemispheres. "We supply items that are not produced in India, including fresh fruits, walnuts, and frozen seafood, whereas India exports products like mangoes and basmati rice that are sought after in Chile," he told BNE.
Chile stands as the primary supplier of walnuts to India, a role that has been further solidified due to increasing demand. Angulo revealed that Chile is indeed a leading supplier of walnuts to India. "Our agricultural trade enhances one another, creating a relationship that is mutually beneficial," he stated.
Chile has progressed considerably in developing trade with India under the Preferential Trade Agreement (PTA), signed in 2006 and extended in 2017. Angulo disclosed that Chile is presently working to upgrade the PTA into a comprehensive Free Trade Agreement (FTA) or Comprehensive Economic Partnership Agreement (CEPA).
"We are eager to upgrade the PTA into a Free Trade Agreement," the ambassador shared and added, "This will facilitate further growth, eliminate trade obstacles, and create new opportunities for both nations. Ultimately, trade is beneficial for both parties involved."
Chile holds a unique position as the sole Latin American country with such an agreement with India, underscoring its pivotal role in fostering bilateral trade. Angulo also acknowledged the considerable potential for Assam within this expanding agricultural collaboration. With its strong agricultural base, Assam could significantly enhance trade relations between India and Chile.
"Assam has excellent prospects to engage with Chile, particularly in sectors such as fruit exports, processed foods, and various agricultural products," he stated wile adding that the northeastern region is ideally situated to capitalise on this growing partnership, especially with products like walnuts, which are in high demand in India.
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Angulo expressed a clear message, Chile sees vast opportunities to strengthen its connections with India, particularly with the north eastern states. "We are dedicated to enhancing our partnership with India and will continue to work toward improving agricultural and trade prospects," he said and added, “We are committed to the vision of making it an equitable and a more sophisticated system that suits both the nations."
Having a PTA in hand, coupled with further deliberation over going one step forward in making an FTA, gives good augury to Chile-India trade into the future. This expanding partnership will not only benefit the two nations but also present considerable opportunities for Assam and other northeastern states
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