Chile, which holds vast copper and lithium deposits, is keen to diversify its trading partners and open the country for more investments.
Alberto van Klaveren, Foreign Affairs Minister of the South American country, who is in on three-day visit to India met his counterpart S Jaishankar and interacted with corporates and film makers.
Chile welcomes Indian investment in mining and is ready to negotiate a comprehensive economic partnership agreement with India, van Klaveren told businessline .
India has signed an agreement with Argentina for exploring and mining lithium. Indian companies have shown interest in mines in Chile too. How does your government view Indian participation in mining sector?
Last year, we adopted a national strategy for lithium. As a part of the strategy, we are opening various deposits for exploration. We have called for expressions of interest and couple of Indian companies have expressed interest to participate in future tenders. We are opening 16 lithium deposits for investment and joint ventures.
Chile has a very open economy, and we are aiming to diversify sources of foreign investments. We have investments from US, Canada, Australian and China in mining. We welcome Indian investment in mining. Technology transfer for lithium processing is also possible but that will depend upon nature of deposits in India. We want to increase trade with India and also start negotiation for a comprehensive economic partnership agreement (CEPA).
Chile attracted $21 billion in foreign direct investment last year – the highest in a decade. Are you looking for investment from Indian companies?
Most foreign investments in Chile is concentrated in mining and energy. We have European investment in hydrogen. There is significant Indian investment in Chile represented by the Tata group. TCS headquarters in Latin America is our capital city of Santiago.
We are interested in attracting more Indian investment. There are some joint ventures between Indian and Chilean companies in pharmaceutical sector and there is tremendous potential there. We would like to attract Indian investment in services sector especially information technology.
Is there a timeline for conclusion of CEPA agreement between India and Chile ?
We are ready for negotiations but we understand that the Indian government is holding internal consultations.
Forty per cent of Chile’s exports go to China and are dominated by copper. Is your visit to India a part of strategy to diversify trading partners?
Traditionally our exports to India consisted of copper. We want to diversify our exports. Agriculture is an important sector for us. Chile is a large producer of wines and one of the possibilities is to introduce more wines to India. Currently there are high tariffs on wines and reduction in tariffs will be an important part of CEPA negotiation. There is an increasing demand for tropical fruits in Chile and giving access to Indian mangoes would also be part of negotiations. India–Chile trade was $2.7 billion last year and that it is below potential.
What are your plans to attract Indian tourists?
We have a variety of landscapes in Chile and would like to attract Indian film producers for film shoots. Our priority is to facilitate multiple entry business visas for Indians. This will help with the ease of doing business and will also be a part of CEPA negotiations.
Two years ago Chile elected left wing leader Gabriel Boric as its President. This had sparked apprehensions about uncertainty in Chile’s politics and economy. How do you address the concerns?
There are no longer doubts about the openness of our economy and the best example of that is our trade policy. We are an integral part of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. There is continuity in economic and political policies. We have a very stable environment.
The Russia-Ukraine war has been going on for two years. How do you see Indian Prime Minister Narendra Modi’s visit to Ukraine and what role do you see for India in ending the conflict?
We would like to see very active Indian role in global affairs. India is a prominent representative of the Global South. India and Chile and have common interests. We think India could act as a mediator between Russia and Ukraine to end the conflict.