August 28, 2006

China-Chile FTA takes effect

Chilean President Michelle Bachelet officially announced on Aug 21 that the China-Chile Free Trade Agreement (FTA) will take effect. This is the first FTA that China had signed with a Latin America country.

China and Chile had signed the FTA in November 2005 at the APEC Forum held in Busan, South Korea, following ten months of negotiations. The Chilean parliament approved the FTA in July this year.

Under the agreement, Chile will lower tariff imposed on Chinese imports by 92 percent while China will reduce tariff levied on Chilean imports by 50 percent.

China will also abolish tariffs imposed on Chile's copper minerals and some agricultural products including vegetables, fish oil, fish, chickens and shrimps. Chilean authorities will do away with tariffs on China's machinery, television, printers, computers and automobile.