Context
The recent high-level meeting between India and Chile marks a significant step towards strengthening agricultural ties between the two nations. This meeting, held in New Delhi, brought together key officials from both countries to discuss various aspects of agricultural cooperation, trade, and technological exchange.
Overview of the Meeting
On August 27, 2024, Ramnath Thakur, India’s Minister of State for Agriculture and Farmers’ Welfare, met with Esteban Valenzuela, Chile’s Minister of Agriculture. This meeting was part of a broader diplomatic engagement that included discussions on enhancing trade relations, addressing agricultural challenges, and exploring new opportunities for collaboration.
Key Participants
- Ramnath Thakur: Minister of State for Agriculture and Farmers’ Welfare, India
- Esteban Valenzuela: Minister of Agriculture, Chile
- Alberto Van Klaveren: Chilean Foreign Minister, who co-chaired the joint commission meeting
Importance of Agricultural Technology
A central theme of the discussions was the importance of agricultural technology. Valenzuela emphasized that Chile is keen to adopt advanced agricultural practices and technologies from India. He highlighted India’s significant production of agricultural machinery, particularly tractors, which are vital for enhancing Chile’s agricultural productivity.
Specific Requests from Chile
- Tractors and Equipment: Chile showed interest in sourcing more tractors from India with a view to upgrade the country’s agricultural industry.
- Agricultural Products: The Chilean delegation expressed desire to import food items like mangoes and basmati rice which means a shift in the pattern of their imports.
- Mahindra Vehicles: More specifically, Valenzuela pointed to the need for Mahindra pickups, which are ideal in agricultural applications across Chile.
Expansion of Trade Relations
The meeting also focused on expanding trade relations, particularly in the agricultural sector. Chile is already a significant exporter of various agricultural products, and there is a mutual interest in enhancing this trade.
Chilean Exports to India
- Wine: Clearly, according to Valenzuela, Chile plans to boost the volume of wine shipment to India, taking an opportunity of escalating wine consumption in India.
- Other Agricultural Products: There is also interest in diversing the range of goods that are exported which to include walnuts, fruits and vegetables.
Indian Exports to Chile
As a result, India is interested in exporting more mangoes, pomegranates and other horticulture products to Chile to unlock the balanced bilateral trade.
Existing Agreements and Future Goals
- India and Chile have been having trade relations and trade partnerships between the two countries were formalized by a partial scope agreement which was signed in 2007 and was later upgraded in 2017.
- This has created the possibility of tariff preferences on many goods and has hence enhanced trade relations.
New Initiatives
- At the meeting a work plan to address market access and sanitary and phytosanitary (SPS) issues was launched.
- This is an indication of ability to fight hindrances that may prevent business and cooperation from taking place.
Future Prospects
- The talks also concerned the possible beginning of discussion over CEPA, the agreement that may enhance economic cooperation.
- Klaveren was optimistic on these negotiations noting that studies and analyses have already been done for these negotiations.
Conclusion
The recent political leadership meeting between India and Chile marked a turning point in the enhancement of bilateral relations within agriculture. Seeing that both countries want to improve the trade relations and face challenges in agricultural sectors, as well as seek technology collaboration, it will be beneficial for both nations.
Source: AIR