Commerce Secretary to Visit South America to Advance Trade Pacts with Chile, Argentina, and Brazil

India is scaling up its focus on South America as part of a broader trade diversification strategy. Commerce Secretary Rajesh Agrawal is scheduled to visit Chile, Argentina, and Brazil from August 24 to 28 to strengthen bilateral economic ties and review ongoing trade negotiations.

During the visit, the Commerce Secretary will chair joint trade meetings in Argentina and Brazil while reviewing the progress of the proposed comprehensive trade agreement with Chile. Trade pact talks between New Delhi and Santiago are currently at an advanced stage, with only a few pending issues remaining to be resolved.

Discussions during the Chile leg are expected to cover market access and critical minerals. India and Chile previously implemented a Preferential Trade Agreement (PTA) in 2006 and have held four rounds of negotiations—with the last round held in December 2025—to expand its scope into a Comprehensive Economic Partnership Agreement (CEPA). The proposed CEPA aims to cover digital services, investment promotion, micro, small and medium enterprises (MSMEs), and critical minerals.

Formal negotiations had paused following political transitions in Chile, where a conservative government led by Jose Antonio Kast assumed office on March 11, 2026. According to officials, the new government remains keen on concluding the agreement, and both sides are working to address remaining issues.

In Argentina and Brazil, meetings will focus on boosting trade ties and discussing a proposal to expand the preferential trade agreement between India and the Mercosur trade bloc, which comprises Brazil, Argentina, Uruguay, and Paraguay. The India-Mercosur PTA came into effect on June 1, 2009, with a limited coverage of 450 tariff lines. Both sides are currently discussing the finalisation of terms of reference to initiate formal expansion negotiations. Experts note that these nations, which host significant Indian diaspora populations, are also exploring ways to reduce economic dependence on China.

Additionally, deliberations with Brazil may address the ongoing sugar trade dispute at the World Trade Organisation (WTO). The dispute concerns India's domestic support for sugarcane producers and export subsidies, which Brazil argues are inconsistent with WTO agreements on agriculture and subsidies. India has contested these claims before the WTO panel, maintaining that its policies adhere to its international commitments.

Bilateral trade figures between India and the region have shown notable growth during the 2025-26 fiscal year. India-Argentina bilateral trade rose 25.5 percent to $5.96 billion, comprising $1.01 billion in exports and $4.95 billion in imports. Two-way trade between India and Brazil increased 23.48 percent to $15 billion, with $7 billion in exports and $8 billion in imports. Meanwhile, trade between India and Chile jumped 66.45 percent to $6.25 billion, consisting of $1.22 billion in exports and $5.03 billion in imports.

"India's strategic push to deepen economic ties with South American nations like Chile, Argentina, and Brazil represents a vital step in trade diversification. For businesses, expanding preferential trade agreements and advancing frameworks like the CEPA with Chile will open up new avenues in critical sectors, supply chain resilience, and cross-border collaboration. Monitoring these policy developments will be essential for enterprises looking to leverage emerging international market opportunities." — Dr. Shishir Gupta, Founder & CEO, StartupLanes