Australia and Chile Move towards a Bilateral Free Trade Agreement

Minister for Trade, Warren Truss, today announced that the Australian Government had agreed in-principle to commencing a bilateral negotiation process with Chile, with a view to developing a comprehensive free trade agreement (FTA).

Mr Truss said the initial stage of the process would comprise working-level bilateral meetings in 2007.

“These talks will determine the scope for achieving a bilateral FTA that would eliminate barriers to trade in goods, improve conditions for services exports and investment, and deliver meaningful commercial outcomes.

“While the bilateral meetings are underway, I will be consulting other Ministers, the States and Territories, relevant industry groups and stakeholders to ensure that all views are taken into account in developing Australia’s approach to the negotiation of a high-quality FTA with Chile.”

“Chile has previously proposed developing a broader strategic relationship with Australia, including the possibility of a comprehensive FTA. Australia places a high priority on strengthening its engagement with Chile,” Mr Truss said.

Both Mr Truss and Foreign Affairs Minister, Alexander Downer, discussed the proposal with Chilean Foreign Minister Alejandro Foxley during his recent visit to Australia.

Mr Truss said the process would hopefully lead to a comprehensive and ambitious bilateral FTA.

Mr Truss said a high-quality FTA would strengthen Australia’s efforts to promote a comprehensive approach to economic integration and trade liberalisation in the Asia-Pacific region, and would mark a new step in Australia’s relations with Latin America.

“Australia’s two-way trade in goods and services with Chile reached $423 million in 2005, making Chile Australia’s third-largest trading partner in Latin America,” he said.

Australian companies also have significant investments in Chile, estimated at about US$2.78 billion.

Media Inquiries: Minister Truss' office 02 6277 7420 - Departmental Media Liaison 02 6261 1555