The first round of talks was launched with Chile on Tuesday on
the possibility of setting up a Free Trade Agreement (FTA).
If discussions proceed smoothly, they may conclude before March
next year, Chilean officials predicted.
Three-day talks in Beijing will finalize an outline for FTA
negotiations, stipulating the sectors to be considered and a
timetable for talks.
Assistant Minister of Commerce Yi Xiaozhun and Carlos Furche,
director-general of Chile's General Directorate of International
Economic Relations, headed the delegations at Tuesday's
meeting.
A negotiation committee will be established during this first
round, which will look at areas including rules on place of origin
and inspection and quarantine.
"We hope the talks can end before the presidency of Ricardo
Lagos Escobar concludes, which means March next year," said
Furche.
His forecast is based on the expectation that there are no
sensitive issues involved and both sides are keen to move
forward.
Yi said
China and Chile have gained much experience in negotiating FTAs
with other economies. "Such experiences can help the FTA talks
proceed smoothly."
Chile has signed FTAs with South Korea, Canada, the EFTA (the
European Free Trade Association), Mexico, the US and the EU.
China has completed talks on free trade and dispute settlement
with ASEAN, and is also in talks with New Zealand, South Africa and
the Gulf Cooperation Council.
Trade volume between China and Chile has witnessed an average 22
percent annual growth since 2000, while imports from Chile surged
42 percent over the past four years.
Last year, China's exports to Chile increased 31.6 percent to
nearly US$1.7 billion and imports from Chile jumped 63.5 percent to
US$3.7 billion.
China mainly exports textiles, high-tech goods, shoes and toys
to Chile, while Chile mainly exports copper, paper pulp and iron
ore.
Furche said he expected the FTA would drive agricultural exports
from Chile: "We want to sell more fruit, vegetables and seafood to
China."
The talks were formally announced by President Hu Jintao
and Chilean?President Ricardo Lagos Escobar during Hu's Latin
American tour last November.
Chile has recognized China as a full market economy, and
anticipates becoming a bridge for China to expand exchanges and
cooperation with Latin America.
Other countries in the region are paying a great deal of
attention to the negotiations, said Furche. "They will know the
trade modes with China they may follow and it is a good opportunity
for China to improve its presence in Latin America," he said.
Paraguay will also negotiate an FTA with China if it receives
approval from Mercosur (the South American common market), their
Foreign Minister Leila Rachid said on Monday.
Mercosur has Argentina, Brazil, Paraguay and Uruguay as full
members and Bolivia, Chile, Peru and Venezuela as associate
states.
(China Daily January 26, 2005)