Chile implemented the FTA with Vietnam
The FTA between Chile and Vietnam is the fifth trade agreement negotiated under the administration o…The FTA between Chile and Vietnam is the fifth trade agreement negotiated under the administration of President Sebastián Piñera. It comprises 96% of Chile’s tariff lines. Over nine-thousand products that are covered by the agreement, with different implementation tranches ranging from zero tariff today to a more gradual implementation over fifteen years.
“As of today [February 5, 2014] 73.70% of Chile's exports will enter Vietnam tariff free, key products being fishmeal and medical supplies, both with 5% tariff today. In five years, 75% of Chilean exports will be completely liberalized. At 8 years 80% and at 10 years about 90% of Chilean exports enter Vietnam with zero duty.” said the Director General of DIRECON.
The Agreement, which is focused on market access and its related disciplines, such as Rules of Origin, Sanitary and Phytosanitary Measures, Technical Barriers to Trade, Trade Protection and Cooperation, also includes a review clause that will deepen the agreement in terms of services and investments.
For Chile, it was especially important to win access for beef, pork, dairy products and fruits , since Vietnam has high tariffs on these products and through this agreement will reach zero at the end of the negotiated period. This was emphasized by the Director of DIRECON : " Chile won major concessions for certain products for which Vietnam has high tariffs, as is the case of meat and fruit , this will provide broad benefits for Chilean exporters against potential competitors."
Vietnam won preferential access in the Chilean market for printers , tea and cameras and clothing. For example Vietnamese footwear paid a 6% tariff to enter Chile yesterday, will be zero from today forward.