India, Chile Aim To Complete CEPA Talks In 2026, Focus On Critical Minerals And Market Access

India and Chile have reaffirmed their commitment to finalize negotiations for a Comprehensive Economic Partnership Agreement (CEPA) by the end of 2026, with a particular emphasis on critical minerals and market access. This announcement came during a meeting between India's Commerce Secretary Rajesh Agrawal and Chile's Vice-Minister of International Economic Relations, Pauls Estevaz Weinstein, in Santiago.

Both nations reviewed the progress of their ongoing negotiations and identified the key issues that require resolution. A significant focus of the talks is on establishing reliable supply chains for critical minerals, with an emphasis on lithium and copper, which are essential for India's electric-vehicle battery and clean-energy sectors. India is also eyeing a potential acquisition of Chile's lithium assets to secure a steady supply of this critical mineral.

Chile, being a major global copper producer and part of South America's Lithium Triangle, presents itself as a key potential supplier for India's clean-energy industries. The proposed CEPA includes a dedicated chapter on critical and strategic minerals, addressing the concerns of both countries regarding possible supply disruptions and export restrictions.

India and Chile have already held four rounds of formal negotiations, which were temporarily discontinued following Chile's elections. However, the new government has reviewed the progress and expressed its willingness to resume discussions. The trade relationship between India and Chile currently operates under a Preferential Trade Agreement (PTA), which was initially signed in 2006 and expanded in 2016, covering 2,829 tariff lines.

In April 2025, both countries finalized the terms for upgrading their existing PTA into a CEPA. Chile has become India's fifth-largest trading partner in the Latin America and Caribbean region, with bilateral trade growing from $3.84 billion in 2024 to $5.38 billion in 2025. Agrawal's visit to Latin America also includes stops in Argentina and Brazil, where trade cooperation and the expansion of the India-Mercosur PTA are expected to be discussed.