24 Nov 2017
Chile and Mainland China Sign New Trade Deal
Chile and mainland China signed a protocol to expand their bi-lateral free trade agreement on the side-lines of the recent APEC summit. Notably, Chile is the first country with which mainland China has successfully concluded a process aimed at deepening an existing FTA.
According to Chilean officials, the new deal includes some of the most extensive market access provisions Beijing has ever negotiated with any trade partner, including additional preferential tariff treatment for 30 Chilean forestry products as well as a new chapter on electronic commerce. Chile, for its part, will provide duty-free treatment to 24 additional tariff lines from mainland China, including glucose, fructose, a number of textile and apparel products (including certain wool fabrics, certain man-made fibre yarns and fabrics, and certain cotton, man-made fibre, wool and fine animal hair clothing), and various appliances such as refrigerators and dryers.
Chile and mainland China have also agreed to improve their market access commitments for services, including commitments in mainland China’s trade deals with Australia and South Korea. Moreover, the two sides have adopted new rule of origin provisions in the areas of de minimis content and certificate of origin format as well as exceptions aimed at facilitating bi-lateral trade flows. New disciplines have also been adopted in the areas of customs procedures and trade facilitation, technical and economic co-operation (including in such matters as global value chains, government procurement, cross-border payments, agriculture, and the protection of the interests and rights of consumers of financial services), competition and the environment.