MercoPress. South Atlantic News Agency

China and Chile draft trade agreement.

China and Chile will conclude next September a technical paper assessing the impact for both countries economies of a potential free trade agreement.

"The paper's objective is to exchange information which leads to a better understanding of the economy, trade policies and institutions of each country with the purpose of reaching a free trade agreement", said a release from the Chilean Ministry of Foreign Affairs.

The drafting of the impact paper was agreed last April when the visit of China's vice prime minister .

"The idea is a draft similar to that done with other countries or regional blocks with which Chile has subscribed agreements".

Chile recently made effective a free trade agreement with South Korea, the first ever with an Asian country and has similar accords with the European Union, United States and the European Free Trade Association.

Chile and China currently have over 30 cooperation agreements and consulting policy understandings among which for agriculture and protection of cultural assets.

In 1970 Chile became the first country to establish diplomatic relations with Peoples Popular Republic of China and is the second trade partner of the area after Brazil.

Annual trade is just over 3 billion US dollars; in 2003 Chilean exports reached 1,85 billion US dollars and imports 1,2 billion US dollars.

Copper makes up 60% of Chilean sales followed by grapes and fish meal.