India Deepens Trade Ties with Peru and Chile, Focus on Securing Critical Minerals

India has conducted significant trade negotiations with Peru and Chile. The ninth round of talks for a trade deal with Peru took place in Lima from November 3 to 5, witnessing substantial progress across important chapters including Trade in Goods and Services, Rules of Origin, Technical Barriers to Trade, Customs Procedures, Dispute Settlement, and Critical Minerals. Both sides agreed to hold intersessional meetings, with the next round planned for New Delhi in January 2026.

Concurrently, the third round of Comprehensive Economic Partnership Agreement (CEPA) negotiations with Chile occurred in Santiago from October 27 to 30. Discussions covered Trade in Goods and Services, Investment Promotion, Rules of Origin, Intellectual Property Rights, TBT/SPS measures, Economic Cooperation, and Critical Minerals. India imports vital resources like Gold from Peru and Lithium, Copper, and Molybdenum from Chile. The country is strategically aiming for preferential rights in exploration and assured long-term rates for these metals to fortify its future supply chains. Indian companies are already eligible to bid for Copper mines in Chile, and India's domestic copper consumption is projected to rise significantly.

Impact: This news can impact the Indian stock market by potentially boosting companies involved in mineral sourcing, processing, and related industries, while also enhancing the stability of Indian manufacturing sectors reliant on these imported raw materials. The strategic focus on securing supply chains amid global uncertainties is a positive development. Rating: 6/10.

Difficult Terms: Trade deal: An agreement between countries to establish rules for their trade in goods and services. Negotiations: Discussions aimed at reaching an agreement. Substantive progress: Significant advancement in discussions. Key chapters: Important sections within an agreement. Trade in Goods and Services: The exchange of physical products and intangible activities between countries. Rules of Origin: Criteria to determine the country where a product originates, affecting tariffs. Technical Barriers to Trade (TBT): Regulations or standards that might hinder international trade. Customs Procedures: Processes and rules for moving goods across borders. Dispute Settlement: A mechanism to resolve disagreements arising from trade agreements. Critical Minerals: Minerals essential for modern technologies and national security, with vulnerable supply chains. Comprehensive Economic Partnership Agreement (CEPA): A broad trade agreement covering goods, services, investment, and more. Investment Promotion: Encouraging investment from foreign entities. Intellectual Property Rights (IPR): Legal protections for inventions, designs, and creative works. SPS measures (Sanitary and Phytosanitary): Rules protecting food safety and animal/plant health. Economic Cooperation: Collaboration between countries to improve their economies. Preferential rights: Special advantages granted in trade or resource access. Exploration: The process of searching for natural resources like minerals. Assured and enduring rates: Stable and predictable pricing for commodities over time. Supply chains: The network of organizations and processes involved in producing and distributing goods. Geopolitical uncertainty: Unpredictability in international relations. Economic slowdown: A period of reduced economic growth. Duty concessions: Reductions or waivers on taxes on traded goods.