TNPSC Current Affairs May 2017
India , Chile implementation of Expanded PTA
India and Chile have entered trade relations as an agreement on expansion of India-Chile PTA which was signed on September, 2016 is finally being implemented on 16th May, 2017.
It will help both sides as a wide array of concessions has been offered by both sides on a number of tariff lines which will facilitate more two way trade.
About expanded PTA.
- India and Chile had earlier signed PTA on 2006 which came into effect from 2007, which has limited number of tariff lines.
- The expanded Preferential trade agreement (PTA) has a wider coverage, wherein Chile has offered concessions to India on 1798 tariff lines with Margin of Preference (MoP) ranging from 30%-100% and India has offered concessions to Chile on 1031 tariff lines at 8-digit level with MoP ranging from 10%-100%.
- Currently Chile is the fourth largest trading partner of India in LAC region after Brazil, Venezuela and Argentina
- India’s exports to Chile consist of transport equipment, drugs and pharmaceuticals, yarn of polyester fibres, tyres and tubes, manufacture of metals, articles of apparel, organic/inorganic and agro chemicals, textiles, readymade garments, plastic goods, leather products, engineering goods, imitation jewellery, sports goods and handicrafts
- Import from Chile are copper ore and concentrates, iodine, copper anodes, copper cathodes, molybdenum ores & concentrates, lithium carbonates & oxide, metal scrap, inorganic chemicals, pulp & waste paper, fruits & nuts excluding cashews, fertilizers and machinery.
About Preferential trade agreement (PTA) .
The trade agreement between countries that reduce the tariffs for certain goods to the country which signed the agreement.
In simple the tariffs are lower for the country which signed the PTA, than the country which is not the part of Preferential Trade agreement.