Foreign Press and Public Relations Div: INT 82-2-503-8652
Economic Cooperation Div : INT 82-2-503-9130
From October 18 to 24, 2002, Korea and Chile held
the bilateral FTA negotiations which were concluded with the resolution
of remaining bilateral trade issues. The two sides reached an agreement
on all sectors in the FTA agreement.
The two sides will, first, initiate the agreement
and finalize the contents of the annexes. Upon Cabinet and Presidential
reviews the finalized agreement will then be officially signed.
The agreement will take effect 30 days after its ratification. The
actual date of effect is expected to be in the first half of next
year.
The Korea-Chile FTA is expected to include the
following provisions:
① Tariffs on manufactured products that account
for 66% of Korea's exports to Chile, such as automobiles, cargo
vehicles, mobile phones, and computers, will be withdrawn immediately.
Furthermore, tariffs on products such as petroleum chemical products
and automobile parts will be withdrawn within the next 5 years.
② Chilean agricultural products, such as apples,
pears and rice, will be excluded from the concession schedule. Seasonal
tariffs will be imposed on grapes. However, it was agreed that issues
regarding certain agricultural products with high tariffs, such
as red peppers, onions, garlic, dairy products, etc., would be decided
upon after the conclusion of WTO DDA negotiations.
③ Regarding the concession schedules for fisheries
products, the Chilean side agreed to impose no tariffs on all Korean
products. The tariffs on Chilean products will take place within
the next ten years.
Related organizations, such as the Korean Institute
for International Economic Policy (KIEP), the Korea Trade-Investment
Promotion Agency (KOTRA), and the Bank of Korea, expect that the
conclusion of the FTA will increase bilateral trade and promote
investment, having a positive impact on Korea's economy.
This FTA will be the first to be concluded by
Korea, following much public expectation and in response to the
growing trend of regionalism in the world. It is expected that the
FTA will act as a bridge between Korea and the Central and South
American region, helping to strengthen political and economic relations.
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