MercoPress. South Atlantic News Agency

Bachelet signs free trade pact with Japan in Tokyo

President Bachelet and Japanese Prime Minister Shinzo Abe finalize a FTA

On the first day of Chilean President Michelle Bachelet's trip to Japan, she and Japanese Prime Minister Shinzo Abe signed a Free Trade Agreement (FTA), which came into effect immediately. That accord is expected to create 50,000 new jobs and significantly increase Chile's exports to Japan.

This FTA represents Chile's fourth such agreement with an Asian country, as Chile already has deals with India, China and South Korea. During the ceremonial signing, Bachelet said she expected Chile's relations with Japan will deepen and grow stronger. Traveling along with Bachelet is a delegation of more than 100 Chilean business representatives who are in Japan to create ties with Japanese businesses. According to an official government press release, the exchange of knowledge is "fundamental" to the FTA. "I hope that Chile can serve as a gateway for Japan to the rest of Latin America," Bachelet added. Under the deal, Chile will immediately lift its six percent tariff on Japanese cars and also remove duties on machinery, electronic equipment and products such as Japanese green tea and sake rice liquor. In return, Japan will gradually abolish taxes on salmon, trout and wine from Chile, with tariffs on over 90 percent of bilateral trade to be phased out within 10 years. The deal does not, however, extend to sensitive Japanese farm produce such as rice, which the Japanese strongly protect. Mexico is the only other Latin American country with which Japan has FTA, and Prime Minister Abe stated that Chile is likely to become Japan's largest trading partner in the region. Aside from trade, Bachelet and Abe also discussed global environmental issues and signed an agreement to step up bilateral cooperation in such areas as climate change, clean energy and anti-pollution measures, according to a joint press statement. In addition, the two leaders discussed Japan's role in the United Nations. Japan is lobbying for a non-permanent seat on the Security Council and Chile has promised to support the initiative. Also, Chile has promised to vote for Japan as a permanent member of the Security Council if a reform of the current structure comes about. In return, Japan is expected to support Chile in obtaining a seat on the United Nations Human Rights Council. After the Japan visit, Bachelet travels to Australia to participate in an APEC summit along with Japan and the Pacific trade organization's other 19 member states. Here, Chile will continue efforts to secure votes for the human rights body. In total, Latin America gets three seats at the Human Rights Council and analysts believe Argentina and Brazil are almost assured of sufficient votes to be elected. This means Chile will most likely have to square off with Venezuela for the third available seat. Venezuela's President Hugo Chávez is expected to work hard to secure the position, following his country's failure to get a non-permanent seat the UN Security Council last year. Chile has the advantage of being one of only two Latin American APEC members, and Bachelet may secure enough votes at the APEC summit to catapult Chile into the seat if she plays her cards right. Another important human rights issue that may have been the subject of debates between Chile and Japan is the extradition of former Peruvian President Alberto Fujimori to Peru. Fujimori, who has dual Japanese and Peruvian citizenship, has been under house arrest in Chile since he arrived here unexpectedly in November –2005, following five years of exile in Japan. Chile's Supreme Court was expected to rule on whether or not to extradite Fujimori last Tuesday, but the verdict was postponed. For nearly two years now Peruvian prosecutors have pushed for Fujimori's extradition to Peru, where he is likely to face trial for numerous crimes ranging from illegal telephone tapping, to inappropriate use of state funds, to state-sponsored massacres. Representing the Peruvian state, attorney Alfredo Etcheberry described former President Fujimori is someone who carefully and forcefully consolidated "absolute" power. The up-coming ruling from Chile's Supreme Court will be final. The Santiago Times