Chile continues strengthening its commercial ties with world markets

November has been an extraordinary month for Chile’s trade policy and Chilean efforts aimed at enhancing its economic and commercial ties with the world.

Chile-China: On November 18th, 2005, Chile and China signed a free trade agreement, the first between China and a Latin American country. The pact was signed in South Korea during the APEC meeting by Chilean Foreign Minister Ignacio Walker and Chinese Commerce Minister Bo Xilai. Chilean President Ricardo Lagos and Chinese President Hu Jintao attended the signing ceremony.

The agreement will allow duty free access to 91% of Chilean exports to China and 50% of Chinese exports to Chile. The FTA will become effective on July 1st, 2006, after the internal approval of both countries.

Chile-India: Chile and India agreed on a Trade Agreement, on November 22, 2005, granting preferential access to their respective markets for the 98% of the Chilean exportations to India (266 products) and a 91% of the Indian exportations to Chile (296 products).

Chile-Japan: During the same APEC meeting Chilean President Ricardo Lagos and Japanese Prime Minister Junichiro Koizumi also announced the beginning of negotiations for a free trade agreement between Chile and Japan. The two countries had been working on a joint feasibility study for an FTA since January. It is expected that the first round of talks will take place on January, 2006.

Chile-Thailand-Malaysia: Also during the APEC meeting Chile announced the beginning of a feasibility study with Thailand and Malaysia for a free trade agreement with those countries.

Chile-Honduras: Chile and Honduras agreed on November 22, 2005, a Bilateral Protocol to the Free Trade Agreement between Chile and Central America. This protocol is aimed at implementing that FTA. Previously Chile had agreed Bilateral Protocols with Costa Rica and El Salvador.