The Preferential Trade Agreement (PTA) between India and Chile has been expanded. This will facilitate exporters of both sides to take advantage of tariff concessions as per the expanded PTA, which covers around 96 per cent of bilateral trade.

Chile is the fourth largest trading partner of India in the LAC (Latin America and Caribbean) region after Brazil, Venezuela and Argentina. The expanded PTA would immensely benefit both sides as a wide array of concessions has been offered by both sides on a number of tariff lines which will facilitate more two way trade.

India and Chile had earlier signed a PTA in 2006. This had a limited number of tariff lines where both sides had extended tariff concessions to each other. India’s offer list to Chile consisted of only 178 tariff lines whereas Chile’s offer list to India contained 296 tariff lines at the eight-digit level.

The expanded PTA has a wider coverage wherein Chile has offered concessions to India on 1798 tariff lines with Margin of Preference (MoP) ranging from 30 to 100 per cent and India has offered concessions to Chile on 1031 tariff lines at the eight-digit level with MoP ranging from 10 to 100 per cent.