China and Chile sign FTA. On November 18, 2005, Chinese President Hu Jintao attended APEC Economic Leaders' Informal Meeting and met with Chile President Lagos. After the meeting, the two leaders attended the signing ceremony of China-Chile Free Trade Agreement. Bo Xilai, Minister of Commerce of China, and Walker, Minister of Foreign Affairs of Chile, signed China-Chile FT A on behalf of their own government.

The start of China-Chile FTA negotiation on November 18, 2004, was announced by jointly by Chinese President Hu Jintao and Chile President Lagos. Since January this year, the two sides carried out 5-round negotiation on market access, rules of origin, technical barriers to trade, animal and plant quarantine, trade remedy, dispute settlement mechanism, and related legal and technical problems, and reached agreement at the end of October. The agreement was the second FTA of China with other countries besides China-ASEAN FTA.

Chile has always been an important trading partner of China in Latin America. The bilateral trade and economic cooperation maintained fast growth. Bilateral trade in goods has taken on a good momentum.

During the period of 2002-2004, the annual average growth rate of China exports to Chile hit 22%, and the import annual growth rate in the same period experienced a sharp fast growth of 42%. In 2004, bilateral trade of China-Chile reached US$ 5.4 billion. Meanwhile, the two economies were strongly complementary to each other in the industrial and I&E product structure.

Most export product of China was light textile, electromechanical products and plastic products; and the most import product of China from Chile was copper, fish powder, fruit and wine, etc. China and Chile also maintained sound cooperation relations in service trading and investment with a broad developing prospect.

The trade liberalization process China and Chile started will further inspire the huge potential of bilateral economic and trade cooperation, make more closely links on economic and trade cooperation.

China and Chile will start tariff reduction in an all round way from the second half of 2006 after China - Chile FTA going through approval process in each country. For Chile, 74% of import tariff numbers will be zero rated after the Agreement coming into effect, and for China, 63% of import tariff numbers will be zero rated in 2 years.

Besides, this Agreement provides that the two Parties would accelerate tariff reduction when coming to a consensus through consultation, would enhance cooperation in areas of economy, small and medium seized enterprises, culture, education, science and technology, environmental protection, labor and social security, IPR protection, investment promotion, mining and industry.

The Agreement have 14 chapters and 121 articles, consisting of Initial Provisions, General Definitions, National Treatment and Market Access, Rules of Origin, Procedures Related with Rules of Origin, Trade Remedies, Sanitary and Phytosanitary Measures, Technical Barriers to Trade, Transparency, Dispute Settlement, Administration of the Agreement, Exceptions, Cooperation and Final Provisions.
 
Ministry of Commerce of the People's Republic of China

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