The ratification process for Indo-Chile Preferential Trade Agreement (PTA) has been completed in New Delhi recently after the visit of the Chilean President to India. This is based on the PTA signed between India and Chile earlier last year. Both sides have also issued customs notifications.

The PTA provides tariff concessions ranging from 10% to 50% on 178 tariff lines at the 8 digit level to Chile and similar range of tariff concessions on 296 tariff lines at the 8 digit level to India. Tariff concessions offered by Chile inter-alia include agriculture products, chemicals and pharmaceuticals, dyes and resins, plastic, rubber and miscellaneous chemicals, leather products, textiles and clothing, footwear and some industrial products. Tariff concessions offered by India inter-alia include meat and fish products, rock salt, iodine, copper ore and concentrates, chemicals, leather products, newsprint and paper, wood and plywood articles, industrial products, shorn wool & noils of wool etc.

Chile has been India's major trading partner in Latin America and India accords a great deal of significance in promoting bilateral commercial relations. Trade statistics show that bilateral trade between India and Chile has increased from US $ 163.68 million in 1996-97 to US $ 582.60 million in 2005-06. The PTA is expected to give further impetus to the growing bilateral trade.

Preferential trade agreement ratification triggers reciprocal tariff concessions, expanding market access and customs implementation procedures. Ratification of the Preferential Trade Agreement between India and Chile is complete and customs notifications issued, activating reciprocal tariff concessions to expand preferential market access. Concessions apply across agricultural, industrial and mineral sectors-Chile extending reductions on items such as agriculture, chemicals, plastics, textiles and footwear; India extending reductions on items such as meat and fish products, salts and iodine, copper ore, chemicals, leather, paper, wood and wool products-aimed at strengthening bilateral commercial relations and increasing trade.