India is likely to sign the comprehensive free trade agreement (FTA) with Australia and Chile soon following a renewed push to the pacts. FTA allows duty-free or low-duty trade in merchandise between the signatories. The department of commerce joint secretary Dammu Ravi said that India is very close to signing FTA with Chile. The GOI is also having next level discussion with Australia for FTA agreement.
What is Free Trade Agreement?
- It was two early British economists Adam Smith and David Ricardo who developed the idea of free trade into its modern and recognizable form.
- Free trade is a policy followed by some international markets in which countries’ governments do not restrict imports from or exports to other countries. Free trade is exemplified by the European Economic Area and the North American Free Trade Agreement, which have established open markets.
- FTA promoted trade of goods without taxes (including tariffs) or other trade barriers (e.g., quotas on imports or subsidies for producers)
Chile - Interesting Facts
- Chile is the longest north-south trending country in the world at over 4,600 km in length, however on average it is just 150 km wide from west to east.
- The capital city of Chile is Santiago and Chilean Peso is its Currency.
- Chile is one of the most stable and prosperous nations in South America.
- The national flower is the copihue, which grows in the woods of southern Chile.
- The Central Bank of Chile in Santiago serves as the central bank for the country.
Test Your Knowledge
Who is the present President of Chile?