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India and Chile recently agreed to allow Free Trade between both the countries. What does it really mean ? India can sell any product to Chile and Chile can also sell any product to India. India and Chile both will sell goods or services to each other but the payment for the same will be only in return goods. No hard cash will be paid for such transactions. Whatever goods both of them will import or export, the payment will be made only in US dollars and only cash transactions will take place.
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