MercoPress. South Atlantic News Agency

Chile and Colombia start free trade talks

Chile and Colombia announced they have agreed to start negotiations toward a free trade, and said they have settled a controversy over exports of Colombian sugar to Chile.

The agreements were announced after a meeting between Foreign Minister Alejandro Foxley and visiting Colombian Trade Minister Jorge Botero.

Chile agreed to allow 6,000 tons of Colombian sugar and 15,000 tons of sugar-related products to be imported free of duties starting Jan. 1, according to a communique issued after the meeting.

At the same time, Colombia agreed to immediately to lift punitive customs duties of up to 35 percent it had imposed on the import of automobiles from Chile and duties ranging from 10 to 15 percent on other Chilean products, including wine, pears, apples, grapes and cigarettes.

The dispute ??was affecting trade relations between the two governments,'' the communique added.

The communique did not disclose a date for the start of negotiations for a free trade area, but Botero said the governments expect the talks to progress quickly. It would cover products, services and investments.

Bilateral trade last year totaled U$680 million, with a U$4 million surplus for Colombia.