The Free Trade Agreement between China and Chile came into force on March 1, 2019. China Briefing discusses bilateral trade relations between China and Chile, as well as important market opportunities for foreign investors. Earlier, on 24 May 2015, China and Chile signed an agreement to avoid double taxation and agreed to establish an RMB clearing centre in Chile. This DBA was symbolic for China, as it was the 100th tax agreement signed by China with a foreign country. Chile was the first Latin American country to establish diplomatic relations with the People`s Republic of China until 15 December 1970. However, relations stagnated for decades, until the two countries signed a free trade agreement in 2005. It was China`s first free trade agreement with a Latin American country. In November 2005, Chinese President Hu Jintao and former Chilean President Ricardo Lagos witnessed the signing of the China-Chile Free Trade Agreement. The agreement came into force in October 2006. As part of the agreement, China and Chile will gradually extend the customs processing period to 97% of products within ten years. The two countries will also strengthen trade and cooperation in areas such as the economy, SMEs, culture, education, science and technology, as well as environmental protection. On April 13, 2008, Chinese President Hu Jintao and Chilean President Michelle Bachelet signed the additional free trade agreement between the Government of the People`s Republic of China and the Government of the Republic of Chile in Sanya, Hainan Province. Chilean companies offer considerable opportunities in Chinese markets.
Opportunities are particularly strong in the food segments, as the free trade agreement allows Chile to export freely to China. The full text of the LegCo Briefs agreement Press releases and commercial information Circulars Leaflet Useful Links Contact Us Chile was Hong Kong`s third largest trading partner in Latin America. Bilateral merchandise trade between Chile and Hong Kong amounted to HK 17.1 billion in 2019. In services trade, Chile was our third largest trading partner in Latin America, with two-way services trade of HK 1.3 billion in 2012. Information sheet on Hong Kong`s trade relations with Chile Currently, almost half of the services exported are active in the tourism sector. In 2015, Chile implemented a visa-free policy for Chinese citizens who had previously been subject to the U.S. visa requirement. This policy has boosted Chinese tourism. Given the strengthening of trade liberalization and trade between China and Chile, how will businesses benefit? More than half of Chile`s exports are metals and minerals. Chile is highly dependent on its copper production and almost 80% of its exports to China are copper in one form or another.
Chinese demand for copper is constant due to the boom in the construction sector. The free trade agreement will also allow the two countries to open up trade in the sectors. China will open more than 20 sectors to Chilean investors, including legal services, entertainment services and distribution. Chile, meanwhile, will develop more than 40 sectors, including express deliveries, transport and construction. A joint feasibility study conducted by Hong Kong and Chile in July 2009 concluded that strengthening trade and economic relations between Hong Kong and Chile would have a positive impact on both economies.