Chile seeks to open the doors of India to boost its food exports.

Chile finds itself at a strategic crossroads that could redefine its trade relations with one of the most promising markets in the world: India. With a competitive economy and an impressive track record of international treaties, the South American country is determined to make India a major destination for its food products, particularly fruits and wines. However, for this ambition to materialize, a crucial step is required: the reduction of the high tariffs imposed by the Indian government. President Gabriel Boric has given clear instructions to his team, led by Foreign Minister Alberto van Klaveren and Agriculture Minister Esteban Valenzuela. The mission of these officials is clear and urgent: to unlock the tariff barriers that hinder Chilean products' access to the Indian market. This effort is framed within the 'Chile Summit India 2024' event, scheduled to take place from August 27 to 30 in New Delhi and Mumbai, where a new chapter in trade relations between the two countries will be sought. In exclusive statements to EL PAÍS, Valenzuela emphasized that the goal of this trip is to "mark a before and after" in commercial ties. Despite the Partial Scope Agreement in force since 2007, which has allowed for some preferential exchange, the reality is that tariff barriers continue to limit the potential of Chilean exports. The minister is confident that negotiations for a free trade agreement will begin soon, although he clarifies that this decision rests with the Ministry of Foreign Affairs. Chile's interest in diversifying its trade partners is more urgent than ever. Although the country is showing signs of economic recovery, investment remains stagnant. The search for new markets like India presents itself not only as an opportunity but as a necessity. "We need to add economies like India, as well as Arab countries," Valenzuela states, acknowledging the urgency of expanding Chile's trade frontiers. Over the past two decades, trade between the two countries has grown significantly, largely thanks to the export of copper and lithium. However, food products, which account for 30% of Chile's exports to India, are the main focus of this new strategy. The event in India aims not only to open doors for the sale of fruits and wines but also to establish partnerships in the film sector, promoting Chilean locations for Indian productions. As the fourth largest exporter of fruits in the world, Chile has identified India as an expanding market where products such as nuts, apples, and kiwis can find significant space. In fact, nut shipments have experienced a 700% growth in recent years, demonstrating the potential of this market. Iván Correa, general manager of ChileNut, highlights that, unlike other markets, India presents a positive growth curve that could be easily capitalized on with reduced tariffs and greater investment in logistics. Logistics plays a crucial role in this strategy. The Chilean government aims to reduce transport times from 50 to 35 days, which would facilitate the arrival of fresh products in the Indian market. Valenzuela points out that the maritime transport system has improved, allowing for a more efficient connection to Asia. The current situation of the Panama Canal, which is facing transit issues due to drought, makes Chilean routes even more attractive for trade with India. On the other hand, the Chilean wine sector is also seeing a golden opportunity in this new trade approach. The commercial director of Wines of Chile, Angélica Valenzuela, emphasizes the importance of promoting wine consumption among India's rising middle class. With a focus on sustainability and a lower environmental impact, Chilean wines can resonate well with a young and environmentally conscious audience. The message that Chile wishes to convey is clear: commercial negotiation must go hand in hand with collaboration and strengthening ties between the two nations. This collaborative approach would not only benefit the Chilean economy but could also open new opportunities for Indian producers in an increasingly competitive global market. With a well-defined strategy and the commitment of its authorities, Chile is preparing to take a bold step towards India, a country that could become a key trading partner in the future. If they manage to reduce tariffs and facilitate access for their products, the relationship between the two countries could flourish, benefiting both Chilean farmers and Indian consumers. The focus is set on the horizon, where opportunities that could change the commercial landscape of Chile in the Asian continent are emerging.