India and Chile conclude first round of FTA talks
India and Chile have successfully completed the initial round of negotiations for a comprehensive bilateral free trade agreement, according to the Department of Commerce. Building upon their existing preferential trade agreement established in 2006, the two nations are now working towards a broader economic partnership. The proposed agreement aims to encompass sectors like digital services, investment, MSMEs, and critical minerals.
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New Delhi: India and Chile have concluded the first round of negotiations for the proposed comprehensive bilateral free trade agreement, the Department of Commerce said on Friday.The two countries had implemented a preferential trade agreement (PTA) in 2006 and are now negotiating to widen its scope for a comprehensive economic partnership agreement (CEPA).The proposed CEPA aims to build upon the existing PTA and seeks to encompass a broader range of sectors, including digital services, investment promotion and cooperation, MSMEs, and critical minerals.
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Business Standard
a day ago
- Business Standard
Indian firms should use Paraguay as launchpad for South America: MEA
Indian companies should consider Paraguay as a staging post and launchpad to expand their operations across South America, the Ministry of External Affairs (MEA) said on Monday, following talks between the visiting Paraguayan delegation led by President Santiago Peña Palacios and the Indian delegation led by Prime Minister Narendra Modi. The two countries also agreed to 'explore holding technical talks' on expanding the India–Mercosur Preferential Trade Agreement (PTA) to enhance market access and boost both bilateral and inter-regional trade. At the meeting, Peña told the Indian delegation that Paraguay is one of the most open economies in the Mercosur region and South America more broadly, and urged India to take advantage of this. While Paraguay has a small population of around 7 million, and therefore a relatively small domestic market, it is strategically located adjacent to much larger markets. Owing to its central position in South America, Paraguay could serve as a launchpad for Indian companies seeking access to the broader region, said Secretary (East) P Kumaran at a press briefing after the talks. The Southern Common Market—Mercosur, by its Spanish initials—is a regional bloc with six members: Argentina, Brazil, Paraguay, Uruguay, and Bolivia. Venezuela is currently suspended from the group. 'Our companies would be looking at Paraguay as a kind of staging post, and therefore as a force multiplier,' Kumaran said. Indian companies already present in Paraguay include United Phosphorus Limited, which operates an agrochemicals production facility; Praj Industries, which produces biofuels; Aditya Birla Group, which has a trading office; and Tata Group, Mahindra, Royal Enfield, and Bajaj, which have distributorships for their vehicles. Peña, who arrived in India on Monday morning for a three-day visit, will travel to Mumbai on Tuesday to meet top Indian business leaders and companies. India is looking to collaborate with Paraguay in sectors such as healthcare and pharmaceuticals, defence, infrastructure, agriculture, renewable energy, and mining. Kumaran noted that although there was no specific discussion on India's accession to the Inter-American Development Bank (IADB), 'it is an idea that is being discussed within the ministry'. On the India–Mercosur PTA, Kumaran said India has expressed 'serious interest in expanding the scope and reach in terms of the range of products that the PTA covers', but that building consensus among Mercosur's five full members is necessary. 'We are talking to all the partners in the Mercosur region. What we need to do is also to agree on the terms of reference for those discussions, and then take it forward,' he said. During his talks with the Prime Minister, Peña also highlighted that Paraguay produces enough food to feed 70 million people—ten times its own population—and is therefore a major food exporter. 'We do buy soybean oil from them, and they are also willing to work with us on any other agricultural products we wish to import or collaborate on,' Kumaran said. Paraguay is the only country in South America that maintains diplomatic relations with Taiwan, though it also maintains a trading relationship with China. However, its trade is highly concentrated, with imports mainly from China and Brazil, and exports mostly to Argentina and Brazil. Given that much of Paraguay's trade is with just three countries, there is a strong motivation to diversify trade to better manage risks. Kumaran said that India, as a large and growing economy, is a natural partner in this context. Peña said he viewed India as a major trade and investment partner. 'He invited Indian companies to invest in Paraguay and promised to facilitate such investments in an efficient manner,' Kumaran added. Earlier in the day, during delegation-level talks, Prime Minister Modi noted, 'You are visiting not just Delhi but also Mumbai, which shows your commitment to building stronger ties between the two countries.' Referring to the existing PTA with Mercosur, Modi said, 'We can work together to further expand it.'
The Hindu
a day ago
- The Hindu
India, Paraguay can expand trade with MERCOSUR, says PM Modi
India and Paraguay can partner in expanding regional commerce in Latin America, said Prime Minister Narendra Modi on Monday (June 2, 2025). Mr. Modi welcomed Paraguay's President Santiago Pena Palacios and presented the MERCOSUR trade bloc in Latin America as an arena where India and Paraguay can work together closely. Mr. Pena who is on his first visit to India described India as a 'key strategic partner' of his country. 'We see new opportunities for cooperation in areas such as digital technology, critical minerals, energy, agriculture, healthcare, defence, railways, space, and overall economic partnership. We have a Preferential Trade Agreement with MERCOSUR. We can work together to further expand it,' said Mr. Modi in his remarks at the bilateral meeting between the two delegations. The visit by Paraguay's President has come in the backdrop of a churn in global commerce after Donald Trump became the U.S. President. India's relations with Paraguay dates back to 1961 when bilateral diplomatic ties were established. India opened its embassy in Paraguay's capital Asuncion in August 2022. MERCOSUR, a trade bloc including Brazil, Argentina, Paraguay and Uruguay was formed in 1991 and a framework agreement was signed between India and MERCOSUR on June 17, 2003. This agreement was followed by the MERCOSUR-India Preferential Trade Agreement (PTA) signed in New Delhi in 2004. 'India with its vast population and global leadership in technology and innovation, represents a key strategic partner for Paraguay. During my official visit, I had a productive meeting with the Prime Minister Narendra Modi, with whom we agreed on the importance of strengthening our bilateral relationship,' said Mr. Pena. An official, speaking off the record, said Paraguay has the potential to be a reliable regional partner to India as it follows a cautious foreign policy without antagonising any of the major regional and global stakeholders. For India, a special attraction is the natural resources and minerals of Paraguay. Officials said Paraguay has always been cautious about its foreign policy in a region dominated by Argentina and Brazil. Brazil, under left-leaning President Luiz Inacio Lula da Silva and Argentina's right-leaning President Javier Milei have been holding pole positions in Latin America and MERCOSUR.
The Print
a day ago
- The Print
Good news very soon on India-Oman trade agreement: Goyal
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