Chile and Japan have agreed to extend bilateral trade after signing their initial free trade agreement (FTA) in 2007.
The process of strengthening trade betweent the two nations will include negotiating access for products previously excluded from the FTA, including oranges, mandarins, apple juice, salmon and beef as well as honey.
“We have made significant progress in trade between Chile and Japan, but it is important to advance our economic relations,” Pablo Urria, director of Bilateral Economic Affairs with Chile's International Economic Relations Board (Direcon) said in a press release. “So we have agreed to begin a strengthening process of the existing agreement in order to enhance our presence in the market.”
The agreement was reached following a meeting between government representatives in Tokyo, with Urria highlighting the benefits of increasing Japanese investment in Chile in sectors that will build trade and boost national productivity.
Under the current FTA, Chilean exports to Japan pay a 0.39 per cent tariff, while Japanese goods entering Chile pay 0.9 per cent. Since the initial FTA was signed, trade between Japan and Chile has increased 27 per cent, with Japan now Chile’s fourth largest trade partner after China, the EU and the US, according to Direcon.
Both Chile and Japan are two of 12 countries negotiating the Trans Pacific Partnership (TPP), which could further open up trade within Asia Pacific. The next round of TPP negotiations is due to take place in Australia from 25 to 27 October.