Chile, a significant economic and military force in South America, is eager to enhance its defense industry collaboration with India. Chilean Foreign Minister Alberto van Klaveren, who visited Delhi and Mumbai from August 27-31, is keen to explore defense partnerships, including potential exports that align with the needs of the Chilean military.
Strengthening Bilateral Relations
During his visit, van Klaveren engaged in discussions with India's External Affairs Minister S. Jaishankar and other officials, aiming to review and advance bilateral relations. The visit was a crucial step in evaluating and expanding cooperation across several sectors, including trade, agriculture, and critical minerals like lithium and copper.
Exploring a Comprehensive Economic Partnership Agreement (CEPA)
A key highlight of van Klaveren’s visit was the potential establishment of a Comprehensive Economic Partnership Agreement (CEPA) between India and Chile. In talks with Commerce and Industry Minister Piyush Goyal, both sides stressed the need to deepen economic ties. Van Klaveren expressed Chile’s enthusiasm for pursuing a CEPA, noting that preliminary studies have been carried out. Although the negotiations may take time, a CEPA could greatly enhance bilateral trade and investment by improving market access and fostering cooperation in new sectors.
Expanding Agricultural Trade
Agriculture is a significant area of collaboration. Chile, renowned for its agricultural exports, views India as a promising market for its products, including nuts, wines, and fruits. Both countries are working to resolve sanitary and phytosanitary (SPS) issues to facilitate smoother trade. Chile has also shown interest in importing Indian bananas, basmati rice, and mangoes. India, in turn, is exploring opportunities to export roses, garlic, and kidney beans to Chile, aiming to diversify and boost agricultural trade.
Collaboration in Critical Minerals
Chile’s abundant reserves of critical minerals, such as lithium and copper, are highly attractive to India. These minerals are crucial for India’s growing focus on electromobility and electric vehicle (EV) production. Van Klaveren highlighted Chile’s national lithium strategy and invited Indian companies to participate in tenders for new lithium deposits. This collaboration is expected to support India’s green energy initiatives.
Similarly, Chile’s extensive copper deposits offer opportunities for Indian investment, potentially meeting the increasing demand for copper in India’s infrastructure and manufacturing sectors. Discussions also covered the prospect of Indian companies participating in Chilean tenders for copper mining, marking a new phase in the economic relationship between the two countries.
Enhancing India's Pharmaceutical Presence in Chile
Another important discussion point was the expansion of Indian pharmaceutical companies in Chile. India is a leading global exporter of medicines, and there is growing demand for Indian pharmaceuticals in Chile. The talks included the possibility of joint ventures between Indian and Chilean companies, which could strengthen India’s presence in the Chilean market and lead to innovative healthcare solutions tailored to both countries' needs.
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