Ministry of Foreign Affairs of Chile

Today in the 24th APEC Summit, Minister of Foreign Affairs, Heraldo Muñoz, and Minister of Trade, Industry, and Energy, Joo Hyung Hwan, signed a Joint Statement to deepen the Free Trade Agreement between both countries, which entered into force in 2004. Now both governments will initiate actions to improve on aspects such as trade services, trade goods, investments, and cooperation in technological transference, among other issues.

"During the visit of President Park Geun-hye to Chile last year, both her and President Michelle Bachelet agreed on the need of deepening the trade agreement that has been very successful for both countries and has made the Republic of Korea our sixth main trade partner. Now we have agreed on beginning a new negotiation process aimed at opening the market for Chilean exports, especially in foods", stated Minister Muñoz.

One of the main elements of the Joint Statement are the potential benefits that Chile might obtain in the market access negotiation included in the deepening. South Korea is one of the most developed and open economies of the world. It had a GDP of 36.612 million dollars in 2015 and is a relevant international trade for goods and services.

The current Free Trade Agreement Chile-Korea has been standing for 12 years. This is the first Latin American country signing a free trade agreement with an Asian country. But it was also a key move for Chile's involvement in the Asia Pacific region.

South Korea is now the sixth trade partner of Chile, with a bilateral trade participation of 4,5%. South Korea is also the sixth destination for our exports, covering 5,5% of our total exports. Regarding our imports, South Korea is our fifth main supplier of goods, covering 3,5% of our total imports.

During the afternoon Secretary for Commerce and Economic Development of Hong Kong, Gregory So, and Foreign Minister Muñoz subscribed to a supplementary agreement aimed at complementing the Free Trade Agreement (FTA), put into force since 2014.

This way, Chile will be the first Latin American country with a Comprehensive Trade Agreement with Hong Kong, giving benefits and facilities to the access of products and services, and also adding Chilean investments to this economy.

Foreign Minister Muñoz highlighted the new opportunities for both countries on balancing investors in both economies. "This instrument secures the sovereign decisions of both countries and offers a treatment according to modern international standards and norms, incorporating disciplines related to the protection against discrimination. It also assures transparency and legal security on bilateral flows of investment", explained.

Hong Kong has a population of 7 million people and one of the highest GDP of the world, exceeding 56.700 dollars in 2015. Its economy depends mainly on international trade and their financial activity sector, focused on services.

According to the Index of Economic Freedom published by the Heritage Foundation, Hong Kong is one of the countries with more economic freedom in the world. This freedom is probably the result of the easiness of establishing businesses and moving capital within its territory. Therefore, the opportunity is for businesses to see Hong Kong as a platform to make deals on businesses and investments in the south region of China.