Chilean President Ricardo Lagos applauded an agreement reached
Friday between Chile and China on trade in cargo, an important step
toward the establishment of their free trade area (FTA).
"This is good news for agriculture and meat production. Access
to the Chinese market is good news for job creation in our
country," said Lagos, whose country is China's third largest
trading partner in Latin America after Brazil and Mexico.
China is Chile's second largest trading partner after the United
States.
The agreement was reached Friday night in Beijing after five
rounds of negotiations which started in November 2004.
China and Chile are expected to sign the agreement within this
year and implement it as soon as possible, the Chinese Ministry of Commerce said
Friday.
According to the deal, the two countries will cut their tariffs
by 92 percent.
Chilean Foreign Minister Ignacio Walker, who had just finished
the trade talks in Beijing, told Chile's Radio Cooperativa that the
remaining tariffs, which affect mainly Chilean exports of apples,
grapes and salmon, will be gradually reduced over a period of 10
years.
Walker said 152 Chinese products, mostly textiles, would not be
part of the deal in order to protect the interests of Chilean
producers in the industry.
However, Chinese machinery, computers, cars, cell phones and
electronics will enjoy zero import tariff.
Walker said he expected that Chile's annual exports to China
would have risen to US$8 billion by 2008 from US$4 billion at
present.
Chile and China also plan to kick off negotiations for a free
market in services and investment in the first half of 2006.
Chile is likely to become the second trade partner to build an
FTA with China, only after the Association of Southeast Asian
Nations.
(Xinhua News Agency October 29, 2005)