Sino-Chile trade to hit $35b this year

Trade between China and Chile is expected to hit $35 billion this year, boosted by China's increase in imports and a comprehensive free trade agreement between the two countries.

"The trade value between China and Chile will reach $35 billion, accounting for 25 percent of Chile's total trade amount," Xinhua News Agency reported former president of Chile Eduardo Frei Ruiz-Tagle as saying.

Last year, bilateral trade was at $29.03 billion, up 17 percent year-on-year and accounting for one-fifth of Chile's total foreign trade volume.

"Thanks to the comprehensive FTA between the two countries, bilateral trade has been increasing quickly in recent years," said Shao Yingjun, Chinese commercial counselor to Chile.

He added that Chile has become China's second-largest trading partner in Latin America and the second biggest source of imports.

Wang Shouwen, director of the department of foreign trade at the Ministry of Commerce, said that China will strive to raise imports from countries that have signed trade agreements.

China and Chile's FTA, signed in 2005, was effective from 2006, enabling more than 6,000 kinds of Chinese exports goods to have a zero-tariff policy.

In 2008, the preferential exports value from China to Chile reached $8.4 billion, accounting for 90 percent of China's total exports to the country.

Benefiting from the FTA, bilateral trade between China and Chile rose nearly five-fold in five years, from $6 billion in 2005 to $29.03 billion last year.

China is now Chile's biggest trading partner and Chile has surpassed Mexico, becoming China's second-largest trading partner in Latin America in 2008.

China's exports to Chile include mechanical equipment, telecommunication equipment, home appliances, toys, shoes and transportation equipment. Imports from Chile are mainly copper, paper, wood, and fish products.

Also, in recent years, imports of red wine, seaweed and fruit from Chile are increasing fast.