The countries inked the agreement on November 11, 2011 , and its amended version on May 20 this year.
Two-way trade in the past five years has grown by an average 27percent. According to the Vietnam General Department of Customs, thecountry exported 176.9 million USD worth of commodities to Chile inthe first 10 months of this year. The figure included 9.99 million USDfrom rice, nearly 23.4 million USD from textile and garments and almost61 million USD from footwear.
However, both countries’ managerial agencies said that their trade performance hasn’t matched potential.
Director of the American Market Department under the Ministry ofIndustry and Trade (MIT) Nguyen Duy Khien pointed to the fact thatChilean enterprises prefer to do business with partners from countrieshaving FTA with Chile. Therefore, their trade with Vietnamese businesseshasn’t been promoted in the past.
Under thisFTA, Chile will remove 99.62 percent of its tariff lines within 10years. Right after the agreement takes effect, 83.54 percent of tarifflines on Vietnamese goods will be cut down to 0 percent.
In return, Vietnam also pledges to remove 87.8 percent of tariff lines on Chile ’s goods within 15 years.
Chile is considered as a gateway to other Latin Americanmarkets. Thus, experts from both sides said that the FTA will open up alarge number of investment and trade opportunities for theirbusinesses./.