Framework agreement on economic cooperation between Chile and India

Framework agreement on economic cooperation between Chile and India

India's program of focusing on Latin America recently led the governments of India and Chile to sign a framework agreement on economic cooperation. The agreement will see the two countries set up a joint study group charged with examining and improving the economic cooperation in goods, services and investment areas. The countries also signaled their intention to sign a Free Trade Agreement or a Comprehensive Economic Cooperation agreement pending the results of the studies. India has already signed a Preferential Trade Agreement, effective April 2005, with MERCOSUZ (Brazil, Argentina, Paraguay and Uruguay). Chile has Free Trade Agreements with the USA, Canada, Mexico, the EU and South Korea. It is also an active member of the Asia Pacific Economic Cooperation (APEC). Chile's imports from India in 2003-04 reached $80 million, while its exports to India totaled $157 million in the same period. India's exports to Latin America have increased almost twelve fold in the past twelve years (1991-92 to 2003-04), reaching $1.777 billion in 2003-04. Indian exports account for 4.87% of all goods shipped to Latin America.