BUSAN - Chinese
President Hu Jintao met with his Chilean
counterpart Ricardo Lagos on November 18 to attend
the signing ceremony of a free trade agreement
between the two countries. The meeting took place
on the sidelines of the Asia-Pacific Economic
Cooperation (APEC) Economic Leaders' Meeting,
which kicked off the same day in South Korea's
southeastern port city of Busan. Both China and
Chile are members of the APEC forum.
Hu
said the establishment of a free trade zone
between China and Chile, the first between China
and a Latin American country, would not only help
deepen bilateral political, economic and trade
ties, but also set a good
example for South-South cooperation. The two
leaders agreed to direct the relevant government
departments to implement the agreement as early as
possible, so as to benefit the peoples of both
countries, said sources from the Chinese
delegation.
The free trade agreement was
signed by Chinese Commerce Minister Bo Xilai and
Chilean Foreign Minister Ignacio Walker. Under the
agreement, the two countries will fully launch on
July 1, 2006, a tariff reduction process for cargo
goods trade.
Under the agreement, many of
the existing customs duties between both countries
would be immediately abolished, to the benefit of
92% of current Chilean exports to China. For
China, 50% of the goods it exports to Chile would
have their tariffs immediately reduced.
Chile will enjoy immediate duty free
access to China for its exports of copper, other
minerals, some agriculture products and some wood
products. Other goods such as frozen and fresh
salmon, grapes, and apples, will have their
tariffs phased out over a 10-year period. Among
the Chinese exports expected to benefit from the
FTA are machinery, computers, cars, cell phones,
DVDs and printers.
The FTA also includes
provisions on cooperation on a vast array of areas
such as investment and economic promotion;
intellectual property rights; cultural products;
technology and scientific research; and industrial
and mining matters.
The free trade
negotiations were launched by the Chinese and
Chilean presidents on November 18, 2004, when Hu
paid a state visit to the Latin American country.
It is the second free trade agreement that China
has signed, after one with the Association of
Southeast Asian Nations (ASEAN).
During
the meeting with Lagos, Hu said that in recent
years Sino-Chilean ties had undergone a new phase
of accelerated development, with frequent
exchanges of high-level visits and enhanced mutual
political trust. Chile's recognition of China's
full market economy status has promoted a rapid
increase in bilateral trade and expanding
investment, Hu added. Chile was the first Latin
American country to recognize China's full market
economy status.
"The two countries are
maintaining sound coordination and cooperation in
regional and international affairs," said the
Chinese president, who arrived here on November
17. China and Chile, both important countries in
their respective regions, enjoy great potential
and broad prospects in the enhancement of
bilateral ties, Hu said.
This year marks
the 35th anniversary of the establishment of full
diplomatic ties between the two countries. Both
sides should grasp the opportunity and enhance
their cooperation in political, economic and trade
and cultural fields, so as to push forward an
all-around cooperative partnership, he added. For
his part, Lagos said the Chinese president's visit
to Chile last year has consolidated the
traditional bilateral friendship, expanded areas
of cooperation, and enhanced bilateral ties.
Agreeing that the two countries shared
identical views on many major international and
regional issues, the two heads of state also
pledged to strengthen cooperation in multilateral
organizations.
Chile signed a free-trade
agreement with the US in July 2003, whose results
are generally perceived to have exceeded
expectations. Chilean exports to the US grew 32%
in 2004, while US exports to Chile rose 35% in
that year.
