MercoPress. South Atlantic News Agency

Chile linked to the world's main trade blocks

Following the approval this Wednesday by the Chilean Senate of the Free Trade Treaty with United States that was signed last June, Chilean Foreign Affairs Minister Soledad Alvear underlined that the “ratification of the treaty means the job has been done”.

Ms. Alvear said this was the first trade treaty that United States had agreed and ratified with a South American country, which together with a second more ambitious treaty subscribed last year with the European Union, "Chile has become partner of the two leading trade blocks of the world".

"Undoubtedly this means a new era for Chile's trade relations", stressed Ms. Alvear who played down the demonstrations of approximately 300 protestors before Congress in Valparaíso which ended with several arrests and one policeman injured.

"In a democracy we all have the right to express our opinion", added Ms. Alvear who nevertheless pointed out that time will show that the treaty with the US is beneficial for the whole of the Chilean economy and consumers, including farmers who have openly expressed their doubts about some of the clauses.

The final vote in the Chilean Senate was 34 for and 5 against with another 5 abstentions. In the last leg of bilateral negotiations which began in December 2000, fourteen rounds were needed before the agreement was reached.

The treaty becomes effective next January 2004 when 87% of all Chilean produce will have access to the US market with a zero tariff. In twelve years the "zero tariff" will be extensive to all Chilean produce. Chilean Economy Minister Jorge Rodríguez said that both agreements will give a strong boost to the country's economy creating more jobs and attracting more investments.

"United States and Europe only associate with serious countries and the treaty Congress has just ratified will provide us with excellent credibility before international money and other markets. It's a grand occasion for Chile and we must celebrate", said Mr. Rodríguez.

United States is Chile's main trade partner and foreign investor. Bilateral trade is above the six billion US dollars.