Current Affairs - International - Discussion

On May 8, 2025, India and Chile officially signed the Terms of Reference to initiate negotiations for a Comprehensive Economic Partnership Agreement (CEPA), marking a significant upgrade from their existing Preferential Trade Agreement (PTA). This agreement aims to deepen bilateral economic ties by expanding into new areas such as digital services, MSME cooperation, critical minerals, and investment facilitation. The CEPA seeks to ensure sustainable and inclusive growth while enhancing access to strategic resources. By engaging with Chile—a key Latin American economy—India is strengthening South-South cooperation and diversifying its trade and investment relationships in a rapidly evolving global economic landscape.