MercoPress. South Atlantic News Agency

Chile and Australia begin free trade talks

Negotiations leading to a free trade agreement between Chile and Australia will begin soon, according to statements from the two countries' foreign ministers.

The agreement was reached during a meeting between visiting Chilean Foreign Minister Alejandro Foxley and his Australian counterpart, Alexander Downer, in Australia late last week.

"This is a key free trade agreement for us. As a very developed country, Australia has indisputable access to Asian nations, and we can obtain great benefits by partnering with them," said Foxley. The free trade agreement will be the 47th of its kind for Chile. The agreement would further open Chilean markets for Australian investment, which would provide jobs for Chilean workers.

Chile is Australia's fourth largest trading partner in Latin America. Approximately 120 Australian companies trade with Chile; 70 are present in the country.

"We already have a great deal of investment in Chile and we want more Chileans to come to Australia to study," said Downer. "We believe it is in the interests of both countries to strengthen and diversify our economic relations and co-operation."

Trade between the two countries accounted for US$260 million in 2005, with Australian export making up US$165 million of the total. Australia is an interesting market for Chilean businesses. The annual income per capita is US$34,000 in Australia, compared to Chile's US$12,000.

"With such partnerships, if we take the right steps, we will soon be close to the per capita income levels seen in Australia and New Zealand," said Foxley.

With investments worth US$2.78 billion and growing, Australia is Chile's fifth largest investor. Chile has more than US$680 million invested in Australia.

The Santiago Times