In recent years, Chile has seen a significant increase in its trade relations with countries outside of the Western Hemisphere, including China. The Chile-China Free Trade Agreement (FTA) was signed in 2005, creating a favorable environment for bilateral trade and investment.
The Chile-China FTA is known for its comprehensive coverage, as it covers trade in goods and services, investment, intellectual property, and even trade in labor services. The agreement has enabled Chile to expand its export markets and diversify its trade relations beyond traditional markets in North America and Europe.
One of the most significant provisions of the Chile-China FTA is the gradual elimination of tariffs on most products traded between the two countries. Over 97% of Chilean exports to China are now tariff-free, making them more competitive in the Chinese market. Similarly, Chinese products entering Chile are subject to fewer tariffs, making them more affordable to Chilean consumers.
In addition to the benefits of tariff elimination, the Chile-China FTA has also facilitated greater cooperation between the two countries in areas such as agriculture, mining, and energy. Chilean exports of agricultural products, such as fresh fruit and wine, have seen substantial growth since the agreement was signed, and Chinese investment in Chilean mining and energy projects has increased significantly.
The Chile-China FTA has also provided opportunities for Chinese and Chilean businesses to collaborate and access new markets. For example, Chinese companies can establish joint ventures with Chilean partners, giving them access to the South American market. Similarly, Chilean companies can use China as a gateway to access the broader Asian market.
Overall, the Chile-China Free Trade Agreement has been a significant driver of economic growth for both countries. The elimination of tariffs and increased cooperation in areas such as agriculture, mining, and energy have greatly benefited both Chile and China. As Chile continues to expand its global trade relations, it is clear that its partnership with China will remain a crucial part of its economic strategy.
