August 10, 2006

Chile ratifies free trade accord with China

Chile's Senate unanimously voted to ratify a free trade agreement with China on Wednesday (Aug 10), Foreign Minister Alejandro Foxley said.

The first products to be exempted from duties are Chilean fish oil, fish, chicken, shrimp, copper and other minerals. 

All 31 senators approved the accord, which had been ratified by the lower house of Congress last month and is expected to take effect this year.

The accord calls for the lifting of duties for 92 of the products exchanged by the two countries over 10 years.

Both governments expect the deal will rapidly increase bilateral trade, which reached US$6.9 billion last year, with a US$1.8 billion surplus for Chile.

Chile could "become a bridge of union between Asia and South America," Foxley said.

During the first half of this year trade totaled US$3.6 billion, with a US$647 million surplus for Chile.

Chile has in recent years signed free trade deals with the United States, South Korea, Mexico, Canada, the European Union, New Zealand and Singapore, and has advanced talks on deals with India and Japan.