Australia and Chile Announce FTA Negotiations

The initial stage of the process will comprise working-level bilateral meetings in 2007.

Australia’s Minister for Trade, Warren Truss, announced on 8 December that the Australian Government had agreed in-principle to commencing a bilateral negotiation process with Chile, with a view to developing a comprehensive free trade agreement (FTA). Both Mr Truss and Foreign Affairs Minister, Alexander Downer, discussed the proposal with Chilean Foreign Minister Alejandro Foxley during his recent visit to Australia in November.

Australia’s Ambassdor to Chile, Crispin Conroy, has welcomed the announcement: “Negotiation of a comprehensive FTA between our two countries will be an important step towards developing a deeper and more strategic bilateral relationship. Another key priority for Australia will be to conclude a Double Taxation Agreement, which will assist to attract more Australian investment to Chile.” The initial stage of the process will comprise working-level bilateral meetings in 2007 leading to a comprehensive and ambitious bilateral FTA. “These talks will determine the scope for achieving a bilateral FTA that would eliminate barriers to trade in goods, improve conditions for services exports and investment, and deliver meaningful commercial outcomes”, Mr Truss said.

Australia’s two-way trade in goods and services with Chile reached US$423 million in 2005, making Chile Australia’s fourth-largest trading partner in Latin America. Australian companies also have significant investments in Chile, estimated at about US$2.78 billion.