India Strengthens Trade Ties with Latin America: Key Rounds of Negotiations with Peru and Chile (November 2025)

 

India Strengthens Trade Ties with Latin America: Key Rounds of Negotiations with Peru and Chile (November 2025)

Context

India has successfully concluded two important rounds of trade negotiations with Peru and Chile, highlighting its growing engagement with Latin America to enhance economic cooperation, supply chain resilience, and access to critical minerals.

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1. India–Peru Trade Agreement (9th Round, November 2025)

Venue and Dates

• Held in: Lima, Peru

• Dates: 3rd to 5th November 2025

Key Discussion Areas

Substantive progress was achieved in the following chapters:

• Trade in Goods and Services

• Rules of Origin (RoO)

• Technical Barriers to Trade (TBT)

• Customs Procedures

• Dispute Settlement

• Critical Minerals Cooperation

Participants

• Peru:

  • H.E. Ms. Teresa Stella Mera Gómez, Minister of Foreign Trade and Tourism

  • H.E. Mr. César Augusto Llona Silva, Vice Minister of Foreign Trade

• India:

  • H.E. Shri Vishvas Vidu Sapkal, Ambassador of India to Peru

  • Shri Vimal Anand, Joint Secretary and Chief Negotiator, Ministry of Commerce and Industry

Highlights

• Peru’s Perspective: Minister Gómez emphasized Peru’s commitment to the timely conclusion of the trade agreement, noting the complementarity between both economies.

• India’s Perspective: Ambassador Sapkal underlined India’s economic momentum and identified pharmaceuticals, automobiles, textiles, food processing, and critical minerals as key sectors for collaboration.

• Next Steps:

  • Intersessional meetings to resolve pending issues.

  • Next round: Scheduled for January 2026 in New Delhi.

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2. India–Chile Comprehensive Economic Partnership Agreement (CEPA) – 3rd Round (October 2025)

Venue and Dates

• Held in: Santiago, Chile

• Dates: 27th to 30th October 2025

Key Chapters Discussed

• Trade in Goods and Services

• Investment Promotion and Protection

• Rules of Origin

• Intellectual Property Rights (IPR)

• Technical Barriers to Trade (TBT) and Sanitary and Phytosanitary (SPS) Measures

• Economic Cooperation

• Critical Minerals

Key Outcomes

• Both sides reaffirmed their commitment to an early, time-bound conclusion of the CEPA.

• The agreement seeks to:

  • Enhance market access for goods and services.

  • Strengthen supply chain resilience.

  • Promote deeper economic integration between India and Chile.

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Strategic Significance

1. Diversifying India’s Trade Partnerships:
   Strengthens India’s engagement beyond traditional partners, focusing on Latin America as an emerging trade region.

2. Critical Minerals Cooperation:

   • Peru and Chile are rich in lithium, copper, and rare minerals — essential for clean energy, electric vehicles, and electronics.

   • Collaboration will aid India’s energy transition and manufacturing competitiveness.

3. Boost to South–South Cooperation:
   Reinforces India’s role in promoting inclusive and equitable global trade among developing economies.

4. Economic Opportunities:
   Expands scope for Indian exports in pharmaceuticals, textiles, automobiles, machinery, and processed foods.

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UPSC Relevance

Prelims 2026 – Key Pointers

• India–Peru Trade Agreement: Ongoing negotiations; 9th round held in Lima (Nov 2025).

• India–Chile CEPA: 3rd round held in Santiago (Oct 2025).

• Critical Minerals: A major new area of cooperation with both countries.

• Both Peru and Chile: Major producers of lithium and copper.

Mains 2026 – GS Paper 2 & 3 Themes

• GS Paper 2: India’s bilateral relations with Latin America; role of trade diplomacy.

• GS Paper 3:

  • Role of international trade in economic growth.

  • Critical minerals and their importance in India’s energy security and industrial policy.

  • South–South cooperation in global trade.

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Conclusion

India’s renewed trade negotiations with Peru and Chile mark a significant step in its strategy to diversify global trade ties and secure access to critical resources. These engagements align with India’s long-term goals of achieving economic resilience, sustainable growth, and global competitiveness through balanced and comprehensive trade partnerships.