India–Chile Free Trade Negotiations Near Conclusion as Talks with Canada Progress

New Delhi, October 27, 2026: India is moving closer to concluding a comprehensive trade agreement with Chile, while negotiations with Canada are also progressing, according to Union Commerce and Industry Minister Piyush Goyal. The developments reflect India’s continuing efforts to expand international trade partnerships, diversify export markets, strengthen economic cooperation and create new opportunities for Indian businesses in global markets.

Speaking to reporters during his official visit to the Netherlands, Goyal indicated that negotiations with Chile had reached an advanced stage and were approaching conclusion. The minister also expressed satisfaction with the progress of trade discussions with Canada, suggesting that both countries were working towards strengthening their economic relationship through a comprehensive trade framework.

India is simultaneously pursuing trade negotiations with several other countries and regional economic groupings, including the Southern African Customs Union, Mexico and Mercosur. These engagements form part of a broader strategy to improve market access for Indian products and services, attract international investment and strengthen the country’s participation in global supply chains.

The developments come at a time when international trade is increasingly influenced by geopolitical uncertainty, changing supply chains and the growing importance of strategic sectors such as critical minerals, advanced manufacturing, pharmaceuticals and clean-energy technologies.

India–Chile Comprehensive Economic Partnership Agreement Approaches Conclusion

India and Chile have been negotiating a Comprehensive Economic Partnership Agreement (CEPA) aimed at expanding their existing preferential trade relationship into a wider framework for economic cooperation. Goyal’s latest remarks indicate that discussions have progressed significantly and that the two governments are moving closer to reaching a mutually acceptable agreement.

The proposed CEPA is intended to build upon the existing India–Chile Preferential Trade Agreement, which entered into force in September 2007 and was subsequently expanded in May 2017. The preferential arrangement provides tariff concessions on selected products traded between the two countries, creating a foundation for deeper commercial engagement.

Under the expanded agreement, India offered tariff concessions covering 1,031 tariff lines, while Chile extended concessions covering 1,798 tariff lines. These arrangements helped broaden preferential market access and established mechanisms for improving bilateral merchandise trade.

The two countries formally signed the Terms of Reference for CEPA negotiations on May 8, 2025, establishing the framework for discussions on expanding their economic partnership. The first round of negotiations was subsequently held in New Delhi from May 26 to 30, 2025, with representatives from both governments examining opportunities for greater trade liberalisation and economic cooperation.

Negotiations continued through subsequent rounds, addressing market access, trade-related regulations and other aspects of the proposed agreement. In August 2026, Commerce Secretary Rajesh Agrawal visited Santiago and met Chilean Vice-Minister of International Economic Relations Paula Estévez Weinstein to review progress and strengthen bilateral economic engagement.

During those discussions, India and Chile reaffirmed their commitment to working towards the conclusion of a balanced and mutually beneficial agreement by the end of 2026. Goyal’s latest assessment suggests that the process has advanced further, although the proposed CEPA has not yet been formally signed.

A comprehensive agreement could provide businesses in both countries with improved market access, greater regulatory predictability and new opportunities for investment. However, the actual benefits will depend on the final provisions negotiated by the two governments.

Critical Minerals Could Become an Important Area of India–Chile Cooperation

One of the most significant areas of potential economic cooperation between India and Chile concerns critical minerals, particularly copper and lithium. Chile occupies an important position in international mineral supply chains, making it a relevant partner for countries seeking to strengthen access to materials required for modern industrial and energy technologies.

Copper is essential for electrical transmission systems, renewable energy infrastructure, electronics, industrial machinery and electric vehicles. Lithium has become increasingly important because of its extensive use in rechargeable batteries, electric mobility and energy-storage systems.

India’s growing manufacturing capabilities and clean-energy ambitions have increased the importance of developing reliable international supply chains for critical minerals. Stronger commercial engagement with mineral-producing countries can contribute to supply diversification and support domestic industrial development.

Chile’s mineral resources offer opportunities for Indian companies involved in mining, mineral processing, battery manufacturing, electrical equipment and renewable energy technologies. A broader economic agreement could potentially facilitate investment and commercial cooperation in these areas.

However, access to mineral resources is not automatically guaranteed by a free trade agreement. Actual commercial opportunities would depend on investment decisions, market conditions, regulatory requirements and the specific commitments contained in the final agreement.

The proposed CEPA could nevertheless provide a more structured framework for exploring partnerships across the critical minerals value chain.

Pharmaceuticals, Engineering and Manufacturing Offer Export Opportunities

Beyond critical minerals, India and Chile have identified several sectors with potential for expanded commercial cooperation. These include pharmaceuticals, healthcare, machinery, engineering products, agriculture, energy and industrial manufacturing.

India has established substantial capabilities in pharmaceutical manufacturing and exports medicines to numerous international markets. Improved trade arrangements with Chile could create additional opportunities for Indian pharmaceutical companies, subject to the country’s applicable regulatory and market-access requirements.

Engineering goods and industrial machinery represent another area of potential growth. Indian manufacturers supply a wide range of products used in infrastructure development, construction, industrial production and electrical systems.

Expanded market access could help Indian businesses develop stronger commercial relationships with companies in Chile and potentially strengthen their participation in Latin American supply chains.

Agricultural products, processed foods and other manufactured goods may also benefit from improved trade arrangements where preferential access is negotiated.

For Indian exporters, a comprehensive agreement could reduce selected trade barriers and improve the predictability of commercial transactions. The extent of these benefits would depend on the negotiated tariff schedules, rules of origin and regulatory arrangements.

The proposed agreement therefore has relevance not only for large industrial enterprises but also for smaller exporters seeking opportunities in international markets.

India–Canada Trade Negotiations Continue to Advance

Alongside the progress reported in negotiations with Chile, Goyal indicated that India’s discussions with Canada were moving forward positively.

The two countries are negotiating a Comprehensive Economic Partnership Agreement intended to strengthen bilateral trade, expand investment flows and develop cooperation in strategically important sectors.

India and Canada possess complementary economic capabilities in several industries, including energy, agriculture, technology, advanced manufacturing and critical minerals. A comprehensive trade framework could provide opportunities for expanding commercial partnerships in these areas.

The fifth round of negotiations was held in Ottawa from October 5 to 9, 2026, marking another stage in the development of the proposed agreement.

On October 13, Canadian Minister of International Trade Maninder Sidhu met Piyush Goyal in New Delhi during a Canadian trade mission to India. According to the Canadian government, the discussions reviewed the progress of trade negotiations and examined ways to accelerate efforts towards a mutually beneficial agreement.

The two countries have also identified opportunities for increased collaboration in aerospace, artificial intelligence, energy technologies and advanced industrial production.

Canada possesses significant natural resources and mineral reserves, while India offers a large consumer market, expanding industrial capacity and a substantial technology and services sector. These characteristics provide opportunities for mutually beneficial investment and commercial cooperation.

A comprehensive economic partnership could also help businesses establish stronger supply-chain connections and facilitate technology-oriented industrial partnerships.

Although Canadian officials have expressed an ambition to complete the negotiations by the end of 2026, the agreement remains under discussion. Its final scope and implementation schedule will depend on the successful resolution of outstanding negotiating issues.

India Expands Trade Engagement with Southern African Economies

India is also pursuing closer economic cooperation with the Southern African Customs Union, a regional grouping comprising South Africa, Botswana, Eswatini, Lesotho and Namibia.

The two sides signed Terms of Reference in August 2026 to initiate negotiations towards a preferential trade agreement.

Goyal indicated that the negotiating process had begun but would require additional time before a final agreement could be reached.

The proposed arrangement is intended to improve commercial exchanges between India and the five Southern African economies by exploring preferential market access for selected goods.

India maintains economic relationships with African countries across sectors such as pharmaceuticals, engineering, automobiles, agriculture, infrastructure and energy. Stronger trade arrangements could provide additional opportunities for Indian businesses operating in these industries.

South Africa is an important industrial economy within the region and maintains established commercial connections with India. The wider customs union also provides access to markets with differing resource bases and economic requirements.

A preferential arrangement could contribute to stronger regional trade connections and encourage businesses to explore new markets.

However, the negotiations remain at an early stage, and the products or sectors that may receive preferential treatment have not yet been finalised.

Mexico Explores Early-Harvest Trade Arrangement with India

Mexico has expressed interest in pursuing an early-harvest trade agreement with India, according to Goyal.

An early-harvest arrangement generally involves granting preferential access to a limited range of products or sectors before the conclusion of a broader trade agreement.

Such arrangements can allow countries to establish initial commercial concessions while continuing discussions on more complex trade-related issues.

Mexico is an important manufacturing economy with extensive participation in international automotive, electronics, engineering and industrial supply chains.

India and Mexico could potentially expand commercial cooperation in pharmaceuticals, automotive components, industrial machinery, chemicals and other manufactured products.

Indian companies seeking to diversify their export destinations may find opportunities in Mexico’s industrial and consumer markets, while Mexican businesses could explore stronger commercial engagement with India.

An early agreement could provide a foundation for deeper economic cooperation if the two countries subsequently decide to negotiate a more comprehensive trade framework.

At present, however, the proposal remains an expression of interest rather than a concluded agreement. The scope, tariff concessions and implementation arrangements would require formal negotiations.

India Seeks to Expand Preferential Trade with Mercosur

India is also exploring opportunities to expand its existing preferential trade arrangement with Mercosur, the South American economic grouping.

India’s Preferential Trade Agreement with Mercosur entered into force on June 1, 2009, creating a framework for tariff concessions on selected goods.

Under the original arrangement, India offered preferential treatment covering 450 tariff lines, while Mercosur extended concessions covering 452 tariff lines.

The two sides have subsequently examined possibilities for expanding the agreement to cover a wider range of products and improve bilateral trade opportunities.

Brazil, Argentina, Paraguay and Uruguay are established Mercosur members, while Bolivia has joined the bloc, with its participation in particular external arrangements subject to applicable integration procedures.

Brazil remains an important economic partner for India, with cooperation extending across pharmaceuticals, agriculture, energy, industrial manufacturing and international economic institutions.

Expanding the preferential trade arrangement could potentially create greater opportunities for Indian exporters in South American markets.

It could also support trade diversification and strengthen cooperation between developing economies seeking to expand their participation in international commerce.

Goyal expressed hope that political continuity in Brazil would assist progress towards an expanded trade arrangement.

The specific scope of any enlargement, however, remains subject to negotiations between India and the relevant Mercosur parties.

West Asia Developments Influence Trade Negotiations with GCC and Israel

While several negotiations are progressing, Goyal acknowledged that trade discussions involving the Gulf Cooperation Council and Israel have faced delays amid geopolitical tensions in West Asia.

The Gulf Cooperation Council includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.

These countries maintain extensive commercial and strategic relationships with India, particularly in energy, investment, logistics, maritime trade and the employment of Indian professionals.

India has already concluded bilateral trade agreements with the United Arab Emirates and Oman, creating additional channels for economic cooperation with the Gulf region.

A broader agreement with the GCC could potentially facilitate expanded commercial engagement across the regional grouping.

However, prevailing geopolitical circumstances have affected the pace of negotiations.

Goyal indicated that India remained prepared to accelerate discussions when conditions became more conducive.

The minister also referred to India’s assessment of a potential trade agreement with the Eurasian Economic Union.

He noted that the proposed arrangement would primarily concern trade in goods rather than services, requiring India to carefully evaluate its economic advantages.

These developments illustrate the varying commercial and geopolitical considerations influencing India’s international trade negotiations.

Netherlands Visit Opens Opportunities for Technology and Investment Cooperation

Goyal’s remarks on India’s trade negotiations came during an official visit to the Netherlands aimed at strengthening bilateral economic relations and expanding cooperation in advanced industries.

During his engagements on October 26, the minister met Dutch government representatives, parliamentarians and business leaders to discuss investment opportunities, industrial partnerships and greater market access.

The visit included discussions with Dutch representatives responsible for international trade, economic development and regional administration.

An important component of the programme was the India–Netherlands Business Forum, which brought together approximately 200 participants from the two countries.

The discussions examined opportunities in semiconductor technology, electronics, logistics, energy, advanced manufacturing and industrial solutions.

The Netherlands occupies a significant position in European commerce because of its logistics infrastructure, advanced industrial capabilities and connections with international shipping networks.

The Port of Rotterdam is particularly important as one of Europe’s major maritime gateways, providing access to extensive inland transportation and commercial networks.

Stronger cooperation with Dutch businesses could create opportunities for Indian companies seeking investment, technology partnerships and greater access to European markets.

The visit also reflects the importance of bilateral economic engagement alongside India’s broader trade negotiations with the European Union.

Free Trade Agreements Support India’s Export Diversification Strategy

India’s pursuit of trade agreements with countries across the Americas, Africa, Europe and other regions reflects an effort to diversify international markets and strengthen the competitiveness of domestic industries.

International trade agreements can provide exporters with improved market access by reducing selected tariffs, addressing certain regulatory barriers and establishing clearer rules governing commercial exchanges.

Such arrangements can also encourage investment, strengthen supply-chain connections and facilitate industrial cooperation.

For Indian businesses, access to a wider range of international markets could reduce dependence on individual trading partners and create additional opportunities for commercial expansion.

Micro, Small and Medium Enterprises could benefit from improved trading conditions, particularly where agreements simplify procedures or reduce costs associated with exporting.

However, the benefits of trade agreements depend on their final provisions and the ability of businesses to meet applicable standards, documentation requirements and rules of origin.

Indian exporters must also remain competitive in terms of product quality, pricing, reliability and delivery capabilities.

Consequently, the negotiation of an agreement represents only one stage in developing a successful international trade relationship. Effective implementation and commercial utilisation are equally important.

India’s Expanding Economic Diplomacy Strengthens Global Trade Engagement

The latest developments indicate that India is simultaneously engaging with several international partners to improve its commercial relationships and expand its participation in global trade.

Negotiations with Chile appear to have reached an advanced stage, while discussions with Canada continue to progress through successive rounds and ministerial engagements.

India is also developing new economic relationships with the Southern African Customs Union, exploring a limited trade arrangement with Mexico and seeking to expand preferential access under its existing relationship with Mercosur.

These initiatives could create opportunities in pharmaceuticals, engineering, critical minerals, advanced manufacturing, energy technologies and other sectors important to India’s economic development.

They also reflect the growing relationship between trade diplomacy, supply-chain resilience and industrial policy.

For India, deeper economic partnerships can provide opportunities to attract investment, expand exports and improve access to technologies and materials required for domestic manufacturing.

The progress reported by Piyush Goyal on October 27, 2026, therefore represents a significant development in India’s continuing efforts to strengthen its international economic engagement.

Nevertheless, the proposed agreements with Chile and Canada have not yet been formally concluded. Their precise market-access provisions, tariff commitments and implementation schedules will become clear only after negotiations are completed and the respective governments announce the final agreements.

The outcome of these negotiations could play an important role in shaping India’s commercial relationships with North and South America while supporting its broader objective of building a diversified and internationally competitive economy.

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References

1. Akashvani News / News On AIR. “India’s FTA Talks with Chile Near Conclusion: Commerce Minister Piyush Goyal.” 27 October 2026.
   https://newsonair.gov.in/indias-fta-talks-with-chile-near-conclusion-commerce-minister-piyush-goyal/
2. Ministry of Commerce and Industry, Government of India. “India–Chile CEPA Negotiations Advance; Commerce Secretary Shri Rajesh Agrawal Meets Chilean Vice-Minister Paula Estévez Weinstein.” Press Information Bureau, 30 August 2026.
   https://www.pib.gov.in/PressReleasePage.aspx?PRID=2304610
3. Ministry of Commerce and Industry, Government of India. “India and Chile Sign Terms of Reference for Comprehensive Economic Partnership Agreement Negotiations.” Press Information Bureau, 9 May 2025.
   https://www.pib.gov.in/PressReleasePage.aspx?PRID=2127826
4. Ministry of Commerce and Industry, Government of India. “Union Minister of Commerce and Industry Shri Piyush Goyal Holds High-Level Engagements in the Netherlands to Strengthen Bilateral Trade and Investment Ties.” Press Information Bureau, 27 October 2026.
   https://www.pib.gov.in/PressReleasePage.aspx?PRID=2328791
5. Global Affairs Canada, Government of Canada. “Minister Sidhu Meets with India’s Minister of Commerce and Industry to Advance Canada–India Trade and Investment Priorities.” 13 October 2026.
   https://www.canada.ca/en/global-affairs/news/2026/10/minister-sidhu-meets-with-indias-minister-of-commerce-and-industry-to-advance-canada-india-trade-and-investment-priorities.html
6. Department of Commerce, Ministry of Commerce and Industry, Government of India. “Expansion of India–Chile Preferential Trade Agreement.” May 2017.
   https://www.commerce.gov.in/wp-content/uploads/2020/05/MOC_636338205640368585_Expansion_India-Chile_PTA.pdf

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