MercoPress. South Atlantic News Agency

Free trade agreement Chile-EFTA

Chilean President Ricardo Lagos announced this week that Chile had successfully ended negotiations for a free trade agreement with the European Free Trade Association, a grouping that includes Norway, Switzerland, Iceland and Liechtenstein.

Once the agreement is signed and ratified 90% of all trade between Chile and EFTA will have zero tariffs.

With this new agreement Chile will have a virtually privileged situation with the whole of Europe since the agreement with the European Union, already ratified, will include as off 2004 the new country members, mostly former Soviet republics.

As with other trade agreements industrial products will be the most benefited since agriculture remains a strong hurdle in negotiations with Europe, United States, Japan and Korea.

President Lagos pointed out that even when bilateral trade with EFTA is not significant, (263 million US dollars last year), the agreement is another opportunity for Chile and its businessmen to diversify exports and help create jobs.