After more than 5 years of negotiations, Chile and India signed an agreement on Tuesday that formalises the extension of the Partial Scope Agreement (AAP). This will increase tariff preferences from 474 products, which were covered by the original agreement (in force since 2007), to nearly 2,800 products. The agreement will especially benefit Chilean food exports.
The document was signed by the Ambassador of Chile in India, Andres Barbe, and the Secretary of Commerce of India, Rita Teaotia, at the Ministry of Indian Commerce in the city of New Delhi.
"In practice, this means that at least 80% of the products we export to India, a market of over 1,200 million people, will have benefits to access this market," stated the general director of the Direcon, Andres Rebolledo.
The Chilean products with tariff preferences went from 178 to 1,031 and the products of Indian origin that will receive tariff preferences will increase from 296 to 1,798. Some of the Chilean agricultural products that will benefit include: cherries, onions, avocados, grapes, kiwis, tangerines, peaches, canned tomato paste, canned cherries, fruit cocktail, juice of grapes, and apples. Unlike the original agreement, and as a result of the deepening of the process, the products will have tariff preference margins that average between 80% and 100%.
"We also negotiated specific rules of origin that are consistent with the productive and commercial realities of both countries, something that will also benefit our agricultural food sector. The agreement also incorporates technical barriers to trade, as well as sanitary and phytosanitary measures, which will help us eliminate non-tariff barriers," said Rebolledo.
In 2015 trade between Chile and India amounted to 2,658 million dollars. Chilean exports to that country amounted to 1,941 million dollars (FOB), while imports from India totalled 717 million dollars.
Source: latercera.com