China Chile Trade Agreement: What You Need to Know

In November 2005, China and Chile signed a free trade agreement (FTA) that came into effect in 2006. This landmark agreement was the first FTA between China and a Latin American country, and it helped to reduce trade barriers between the two nations.

Since then, China and Chile have become important trading partners, with a bilateral trade volume of $42.8 billion in 2020. China is Chile`s largest trading partner, while Chile is China`s third-largest trading partner in Latin America.

What does the China Chile Trade Agreement mean for businesses and consumers? Here`s a closer look at its key provisions and benefits:

1. Tariff Reductions and Elimination

One of the primary goals of the agreement was to reduce and eliminate tariffs on goods traded between China and Chile. Over 97% of the products traded between the two nations now have zero tariffs. This has helped to boost trade between the two countries, particularly in sectors such as agriculture, mining, and forestry.

2. Investment Protection

The FTA also includes provisions to protect investors from each country who wish to invest in the other country. This includes the protection of intellectual property rights, as well as the establishment of dispute settlement mechanisms.

3. Service Trade Liberalization

The agreement also covers the liberalization of trade in services, allowing companies from both countries to provide services in each other`s markets. This has helped to increase cooperation in sectors such as finance, telecommunications, and tourism.

4. Cooperation in Other Areas

The FTA also includes provisions for cooperation in other areas, such as education, culture, and science and technology. This has helped to deepen the overall relationship between China and Chile, and has led to increased cultural exchange and collaboration on research and development projects.

Overall, the China Chile Trade Agreement has had a significant positive impact on trade and investment between the two countries. It has helped to reduce barriers and promote cooperation in a range of sectors, and has provided a boost to economic growth in both China and Chile. For businesses and consumers in both countries, the agreement has opened up new opportunities and increased access to a wider range of goods and services.