India has signed a Preferential Trade Agreement (PTA) with Chile, Indian Ministry of Commerce and Industry said Wednesday.

Indian Minister of Commerce and Industry Kamal Nath said the agreement marks a "watershed in ties between the two countries as it will impart a new dimension to our trade relations in the times to come."

The agreement was signed by Indian Commerce Secretary S.N. Menon and Ambassador of Chile to India Jorge Heine on behalf of the Chilean Government.

Kamal Nath said the PTA would take bilateral trade to a higher plane with a substantial growth in two-way trade.

In 2004-05, total trade between India and Chile were valued at 447.54 million US dollars, according to statistics.

Indian products for export include textiles, chemicals, pharmaceuticals, engineering and agricultural machinery, and Chilean products are mainly copper, cellulose, newsprint, iodine, fish meal, wood boards, planks and salmon.

Both sides also discussed the draft reports of the Joint Study Group (JSG) and agreed to submit their findings to their respective governments to consider further action on a Free Trade Agreement (FTA) between the two countries.

Chile is one of India's major trading partners in Latin America.

Source: Xinhua