China-Chile free trade zone to strengthen their economic ties

The free trade pact signed by China and Chile last Friday makes structural guarantees for the development of bilateral trade and investment cooperation, the official website of the Ministry of Commerce (MOFCOM) said Tuesday.

Both countries will see exports and tax revenue growth through cutting tariffs and removing non-tariff barriers, said an official with MOFCOM.

For example, China will expand its exports of fabrics and clothes, high-tech products, electric appliances, toys and plastic goods to Chile, and more of Chile's copper, paper pulp, wine and fruits will come to China, he said.

He noted that the industrial and export structures of both countries are complementary.

The upcoming free trade zone will also promote their mutual investment, he said.

Chile's small- and medium-enterprises will enjoy more investment opportunities in China and China's companies can invest more in Chile's coal and telecommunication sectors.

"Chile may become a bridge for China to cooperate with Latin American countries," he said.

After a whole year's negotiation, both sides reached the agreement of a free trade zone in Busan City of the Republic of Korea when China's President Hu Jiantao attended the 13th Asia-Pacific Economic Cooperation (APEC) Economic Leaders' Meeting held there.

According to the agreement, both sides will see import tariffs of over 97 percent items reduced to zero in ten years.

Negotiation on service trade and investment will continue next year,said the official.

Source: Xinhua