Next round of talks on proposed trade pact with Peru likely in Jan 2026

New Delhi, Nov 6 (PTI) The next round of negotiations between India and the South American nation Peru is proposed to be held in January next year in the national capital, the Commerce Ministry said on Thursday.

The ninth round of negotiations with Peru concluded on November 5 in Lima.

Peru is a major producer of critical minerals, which are key inputs for electronics, auto and solar sectors.

"The discussions witnessed substantive progress across key chapters of the proposed agreement, including trade in goods and services, rules of origin, technical barriers to trade, customs procedures, dispute settlement, and critical minerals," the ministry said in a statement.

The Indian delegation is being led by Vimal Anand, Joint Secretary in the Department of Commerce and Chief Negotiator for the pact.

Teresa Stella Mera Gomez, Minister of Foreign Trade and Tourism of Peru, reaffirmed the country's commitment to the timely conclusion of the negotiations, highlighting the complementarity between both economies and expressing optimism that the agreement will enhance trade and investment flows.

Vishvas Vidu Sapkal, Ambassador of India to Peru, noted that the agreement would create new opportunities for cooperation in areas like critical minerals, pharmaceuticals, automobiles, textiles and food processing.

"Both sides agreed to hold inter-sessional meetings to address pending issues ahead of the next round of negotiations proposed to be held in New Delhi in January 2026," the ministry said.

Meanwhile, India and Chile have also concluded the third round of negotiations for a Comprehensive Economic Partnership Agreement (CEPA) in Santiago, held on October 27-30.

"India's growing trade engagement with Peru and Chile reflects its strategic focus on building stronger partnerships with the Latin American region through mutually beneficial and comprehensive economic cooperation frameworks," the ministry said.

India and Chile implemented a preferential trade agreement (PTA) in 2006 and are now negotiating to widen its scope for a comprehensive economic partnership agreement.

CEPA aims to build upon the existing PTA between the two nations and seeks to encompass a broader range of sectors, including digital services, investment promotion and cooperation, MSMEs (micro, small and medium enterprises), and critical minerals.

The bilateral trade between India and Chile is modest. In 2024-25, India's exports to Chile were down 2.46 per cent to just USD 1.15 billion. Imports, however, grew 72 per cent to USD 2.60 billion.

The largest Indian exports to Chile are auto and pharma. The biggest imports from Chile are minerals worth around USD 1.58 billion. Other products imported from Chile are copper and chemicals.

Chile is the fifth-largest trading partner of India in the LAC (Latin American countries) region.

India's exports to Chile are diversified and constitute motor vehicles/cars, drug formulations, chemicals, iron and steel products, man-made yarn, fabrics, cotton fabrics, made-ups, RMG (ready-made garments), auto components, electric machinery and equipment, leather goods, rubber products, aluminium and its products, and ceramics.

On the other hand, Peru has emerged as the third-largest trading partner of India in the Latin American and Caribbean regions.

In 2024-25, India's exports to Peru rose by about 9 per cent to USD 1 billion, while imports grew 60 per cent to USD 4.98 billion.

India's main exports to Peru include motorcycles and three-wheelers, polyester and cotton yarns, pharmaceuticals, iron and steel products, plastic products, rubber, pipes for the oil and gas industry, tyres and pipes, among others.

Main imports from Peru are gold, copper, synthetic filaments, phosphates of calcium, fresh grapes, and fish flour. PTI RR BAL BAL