MercoPress. South Atlantic News Agency

National strike in Chile

Chilean unions have announced a national strike for next Wednesday when the country's Congress is scheduled to begin considering the free trade agreement signed with the United States and which was approved by an ample majority in the US Senate, 66 votes and 31 against.

The 24 hours work stoppage that in some unions could be longer is to protest President Ricardo Lagos administration economic and labour policies.

"We are disillusioned with the policies of a government supposedly Socialist that has promised jobs, stability, higher incomes but has not delivered. We're demanding radical changes in current policies", reads a pamphlet distributed in Chile's main cities.

Although Chile has been rather successful in managing the financial crisis that hit the area since 1998, job creation and salaries remain below expectations with the local economy showing a contracted demand and growing mainly through exports.

Chilean Foreign Affairs Minister Soledad Alvear said the free trade agreement should be approved by next October on time for its launching January 2004. A special committee from the Lower House with the thirteen members of the Foreign Affairs Committee and twelve Deputies from the different parties will begin discussing the bill this week. When the US Congress approved the agreement Chilean president Lagos described it as a "tremendous contribution" and a "historic occasion" for the country's development.

Beginning 2004, 87% of Chilean exports to the US will be tariff free, reaching 94,8% in the fourth year. In twelve years all tariffs and custom duties will have been eliminated.

The president of Chile's National Commerce Chamber Fernando Lihn praised the agreement and forecasted a 1,8 billion US dollars increase in bilateral trade in the coming five years. United States is Chile's main trade partner with exports reaching 6,25 billion US dollars in 2002. Besides US is the main foreign investor in the country with 15,8 billion US dollars between 1974 and 2002.