FTA With Chile Will Create Trade Opportunities

The Australian Government has decided to proceed with free trade agreement negotiations with Chile, the Minister for Trade, Warren Truss, said today.

These negotiations offer an excellent opportunity to develop a comprehensive and ambitious bilateral free trade agreement (FTA) which would eliminate barriers to trade in goods, improve conditions for services exports and investment, and offer meaningful commercial opportunities for Australian exporters.

The Government’s decision comes after consultations with Australian industry, states and territories and federal agencies, and bilateral officials’ meetings.

Mr Truss said Chile is Australia’s third largest trading partner in Latin America, with two-way trade in goods and services valued at $A574 million in 2006.

Australian companies have significant investments in Chile, estimated at US$2.78 billion. That investment figure is expected to grow further under an FTA.

Mr Truss said he was conscious of the sensitivities of some sections of the horticulture and salmon industries about an FTA with Chile. However, tariffs on these lines are already low – generally zero. Australia will not be trading off our science-based quarantine system in either this or any other FTA, he said.

“Proceeding to FTA negotiations is a new step towards a broader strategic relationship with Chile and Australia’s relations with Latin America in general. A high quality agreement would also support Australia’s efforts to promote global trade reform and greater trade liberalisation in the Asia Pacific region.”

Mr Truss said Australia’s top priority remains a positive outcome for the Doha Round of world trade talks, but he was also committed to securing new trade and investment opportunities for Australian businesses through the successful conclusion of bilateral FTA negotiations.

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