India Advances Trade Talks with Chile and Peru, Focusing on Critical Minerals
India has concluded significant trade negotiations with Peru and Chile, emphasizing access to critical minerals. The ninth round of talks with Peru and the third round of CEPA discussions with Chile covered trade in goods and services, rules of origin, and dispute settlement. For the first time, India's FTA negotiations included critical minerals, targeting gold from Peru and lithium, copper, and molybdenum from Chile. India aims for preferential exploration rights and assured supply rates. The next round with Peru is set for January 2026 in New Delhi. Indian companies can already participate in Chilean copper mine auctions, with potential for growth in India's copper consumption.
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India has made significant progress in its trade negotiations with Peru and Chile, marking a pivotal moment in its pursuit of critical minerals and expanded economic partnerships. The talks, which concluded recently, have set the stage for potential agreements that could reshape India's access to vital resources.
Key Developments in Trade Negotiations
- Peru Talks: India completed the ninth round of trade negotiations with Peru in Lima.
- Chile Talks: The third round of Comprehensive Economic Partnership Agreement (CEPA) discussions with Chile concluded in Santiago.
Focus on Critical Minerals
For the first time in India's Free Trade Agreements (FTAs), both negotiations included discussions on critical minerals. This development underscores India's strategic approach to securing essential resources for its growing economy.
Resource Targets and Trade Objectives
| Country | Key Resources | India's Objectives |
|---|---|---|
| Peru | Gold | Preferential exploration rights, Assured supply rates |
| Chile | Lithium, Copper, Molybdenum | Preferential exploration rights, Assured supply rates |
Comprehensive Negotiation Scope
The talks covered a wide range of topics crucial for robust trade relationships:
- Trade in goods and services
- Rules of origin
- Technical barriers
- Dispute settlement mechanisms
Future Negotiations
The next round of negotiations with Peru is scheduled for January 2026 in New Delhi, indicating a long-term commitment to the trade dialogue.
Strategic Implications
For India
- Securing supply chains for critical minerals amid global geopolitical uncertainties
- Enhancing economic partnerships in Latin America
For Peru and Chile
- Diversifying trade destinations
- Preventing market monopolization
Current Progress
- Indian companies are already eligible to participate in copper mine auctions in Chile.
- India's per capita copper consumption remains below levels seen in developed countries, suggesting potential for growth.
This round of negotiations marks a significant step in India's efforts to diversify its trade relationships and secure access to critical resources. As these talks progress, they could potentially reshape the landscape of India's trade partnerships in Latin America and its access to vital minerals essential for various industries.
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