Khurshid's 10-day visit to boost LatAm ties

Khurshid, who returns on Thursday after a four-day visit to Germany and Belgium, will leave for Argentina, Colombia and Chile on Friday.

India and Chile are close to formalising a comprehensive economic partnership agreement (CEPA), an arrangement equivalent to a free trade agreement, which would reduce or eliminate duties on most of the products traded by the two. Chile is also considered to be the gateway to Latin America in the areas of investment and trade opportunities. With bilateral trade at $2.6 billion in 2011-12, India has been pushing for a double taxation avoidance agreement (DTAA) with Chile and has asked it to further liberalise its visa regime to help professionals and businessmen.

Chile's main export to India is copper, and with the inking of the new trade agreement the product is expected to reach India with zero tariffs. Among other things, Chile also exports paper pulp to India. The two countries are seeking cooperation in areas like information technology, oceanography, science and technology, agriculture and food processing, and engineering and infrastructure.

With Colombia, India has a bilateral investment promotion and protection agreement (BIPPA) that came into effect in June 2012. India has also urged Colombia to expedite ratification of a DTAA to boost investor confidence.

Earlier this month, ONGC Videsh (OVL) discovered oil in an onland block, CPO-5, in Colombia. OVL holds 70% participating interest in the block located at the Ilanos basin of Colombia. The project was under Phase-I of exploration, with a commitment of drilling two exploratory wells.

Argentina, a leading agricultural economy, has invited farmers from India to purchase land there and cultivate it. India is also a major importer of Argentine soybean oil, importing $1.8 billion in 2010.

Indian companies have a major presence in Latin American countries. IT companies in Chile include TCS. While in Argentina, there are over 15 Indian companies, with many being in the IT and IT-enabled services sector, employing thousands of people.

The others are manufacturing areas ranging from pharma, cosmetics to agro chemicals. India-Latin American trade stood at $20 billion in 2010, way below the $140 billion in Chinese-Latin American trade.

ALSO READ

Drug pricing order hits few, helps many

National Pension System posts 12-14% return in FY13, outperforms EPFO

Sam Pitroda: Poor don't get attention as best brains busy solving problems of rich

Top jobs in broadcasting, defence production may be thrown open to NRIs