With 1.3 billion inhabitants and a sustained economic growth of between 8% and 10% in the last decade, China plays today an increasingly gravitating role in global politics and economy. For many people, the phenomenon led by this country is considered to be a second industrial revolution.

The current growth rates of China find their origin in the program of reforms and economic opening conducted in China during the late 70s and early 80s decade, along with Chinese entry into the World Trade Organization (WTO) in the 2001.

The explosive growth of the Chinese GDP over 8.5% in the last years (it has three-folded during the last decade) has also turned it into a great consumer of energy and raw materials who has to seek such resources or supplies to be provided by other regions.

Chile is the first Non-Asian who negotiates an FTA with China. With 1.3 billion inhabitants, it represents a very important potential market for the exporting of Chilean products; besides, it strengthen the presence of our country in Asia and serves as a bridge between such dynamic zone and South America.

The accelerated and sustained growth of its GDP and their commercial exchanges, together with deep economic reforms that have been implemented which made it join the WTO, as well as the searching for bilateral agreements, have allowed this Asian nation to become the most dynamic actor in worldwide economy.

• In June of the 2002, the PRC proposed Chile to start negotiations for a Free Trade Agreement.
• On 18 November 2004, after a feasibility study, in the framework of the bilateral activities of APEC Summit 2004, the President of Chile and the President of the People's Republic of China announced the beginning of negotiations for a future FTA.
• The 1st Round of Negotiations was carried out in Beijing, from January 25 to 27, 2005, and the Commercial Negotiations Committee was established.
• The 2nd Round of Negotiations took place in Santiago, Chile, from April 27 to 29.
• The 3rd Round of Negotiations was held from June 28 to 30, in the city of Wuxi, China.
• The 4th Round of Negotiations took place in Santiago between 12 and 16 of September.
• The 5th and last Round of Negotiations was held between October 24 and 28, in Beijing, China. The meeting was concluded with the presence of the Minister of Foreign Affairs of Chile, Mr. Ignacio Walker, and the Minister of Commerce of China, Bo Xilai. Later on, during the 2005 APEC Summit caried out in Korea, they both signed the Agreement on 18 November 2005.
• The Agreement recently entered into force in Chile on 1st October 2006.

The final text of the agreement considers chapters on the following matters: Institutional and Administrative Proceedings, Market Access, Trade Remedies, Rules of Origin, Sanitary and Phytosanitary Measures, Technical Barriers to Trade, Dispute Settlement, and Cooperation. A Memorandum of Understanding between the corresponding labor and social security authorities, and an Agreement on Environmental Cooperation were also signed with the FTA.

A consensus was reached for the immediate reduction of tariffs on 92% of Chilean exports to China, applicable the first day in which the agreement becomes effective. For China, this percentage amounts to 50% of its current trade. The agreement also considers tariff reductions after 1, 5, and 10 years for Chilean products accessing China, and 5 and 10 years for Chinese exports to Chile. Product exclusions for 1% of Chilean exports and 3% of Chinese shipments to our country were also agreed.

» Text of the Agreement