Vietnam – Chile FTA signed

In the past 41 years since the establishment of Vietnam – Chile diplomatic relations on Jun 1, 1972 bilateral ralations have developed, espe cially in terms of economic cooperation, marked by a signed free Trade Agreement (FTA).

During his work visit to Vietnam last year, the Republic of Chile’s Enchenique emphasizeed the importance of the bilateral relationship and promised to prioritize these relations wwith Vietnam.

The priority areas of coopration between the two countries focus on applied science and technologies in the mining sector and protecting the enviroments in the field of agriculture, Chile can also cooperate with Vietnam develop agro-processing and food technologies.

Accrording to the International Monetary Fund (IMF)’s report last year Chile achieved positive ecnomic achieverments based on Chilean goverment’s directions an dynamic development policies, esspecially tacking the advantage of exxport of minerals such as copper. According to economic exxperts, Chile is a potential market for Vietnamese enterprises to exploit as it not only is a large market for Vietnam goods, but also a protential bridge for Vietnamese goods to enter South America. Vietnam could also act as a bridge for Chilean goods to access South Asia.

Vietnam and Chile bilateral economic and trade ralations have seen positive developments in recent years.

According to Chile’s Ministry of Foreign Affairs’ Trade Commistion of Chile (ProChile), trade exchange between Vietnam and Chile in 2017 reached more than US$606 million, up 24.5 percent for 2016 high level.

November 11, 2011, which is due to take effect in 2013. The FTA primarity forcuses on the opening of market with commitments to intensively reduce and eliminatemany taxes on potential export items.

According to the FTA, Chile is committed to eliminating 99.62 percent of tariffs on Vietnamese goods within 11 years affter FTA comes to force.

It is also committed to eliminating 83.54 percent as soon as the agreement becomes effective. Chile pledged to immediately reduce to zero percent 12 9.3 percent most favorednation tariff lines on meat products and chilled or frozen offal of poultry; eleminate 29 tariff lines on grain, flour, sugar, ice cream powder, non-alcoholic preparations for beer production, cocao powder on tires and retreads.

The Vietnam and Chile FTA, approved by the two goverments and is expected to be implemented this last year, will offer Vietnamese and Chilean business opporttunities to develop, It is also one the key objectives of policy makers who want create more favorable conditions for business people in two countries . Analysts said the Vietnam – Chile’s FTA maked a milestone in trade relarions between the two countries and also fur-ther strengthened Chile’s economic intergration strategy in Asi and Vietmam’s economic integration strategy in South America.

(According Vietnam Economic News).

Tags: economic, Vietnam chi le