MercoPress. South Atlantic News Agency

Colombia and Chile sign trade and investment accord

Chile and Colombia signed a trade agreement Monday that will eliminate the bulk of customs duties on the annual 689 million US dollars in goods traded between the two countries.

The deal was signed in Santiago by President Michelle Bachelet and visiting Colombian leader Alvaro Uribe and will take effect after congressional ratification in both countries.

The Chile-Colombia deal was agreed upon after just two negotiating rounds, and Uribe praised Chile's skill in negotiating trade accords.

"One must learn from Chile," he said.

"The accord gives maturity to our bilateral relation and is of great significance for both countries", said President Bachelet underlining that the agreement covers not only goods but also investments, "which makes it the most in depth signed by any two Latinamerican countries".

"We have a similar political and strategy in overseas policies which will help to launch us jointly into third markets", added the Chilean president.

"I would like to highlight that Chile is an integration example for the international economy. They haven't stopped or being distracted by insipid ideological debates. It has addressed the issue as state policy with the only purpose of benefiting the Chilean people", said Uribe.

Uribe also talked about domestic policies and defended his government's security policy, saying it is "dismantling paramilitaries and is the one that will dismantle guerrillas and drug trafficking."

Uribe later attended a regional gathering of Latin American businessmen where he was one of the main speakers.

Chile already has trade accords with the United States, the European Union, China and South Korea, among others, and is negotiating with Japan, India and Singapore. Colombia negotiated a deal with the United States that faces congressional ratification in each country. Colombia is also negotiating accords with Cuba, El Salvador, Guatemala and Honduras.