Under the agreement , after five years from the effective date of the agreement , exempt from import tax rate will be 75 % , after 8 years was 80 % and after 10 years is 90 % , except for one product in the list eliminate about 3 % of tariff lines .
General Services Department International Economic Negotiations , Ministry of Foreign Affairs of Chile, Alvaro Jana emphasized FTA with Vietnam offers an important opportunity to contribute to help Chile closer to ASEAN , further deepening the strengthen the commercial strategy in Asia . In addition , increasing the growth rate of the economy positively Vietnam opens up many opportunities for the export products of Chile , and Chile also facilitate the penetration of other markets in the region .
Vietnam and Chile began negotiations for a Free Trade Agreement ( FTA ) in goods from 10/2008 . This is the first FTA negotiations Vietnam , signed with a Latin American country .
Agreement also refers to the facilitation of access to markets , as well as other areas related goods such as rules of origin , sanitary measures , animal and plant quarantine , technical barriers trade -related technical , commercial and defense cooperation mechanism between the two sides in trade , given the terms in the near future , allowing deepen the subsequent negotiations in the field of services and investment between the two countries .
It is important for Chile to Vietnam market access for beef products and pork , milk and fresh fruit , because the current import tariffs on these products in Vietnam is quite high . Thanks to this agreement , in the future , import tariffs will be lifted on a 0 % tariff reduction schedule specified . This will help open up a number of advantages for Chilean exports to certain potential competitors other .
On the Vietnam side , a number of products to benefit from this agreement are : coffee , printers , tea , digital cameras , optical instruments , medical equipment . Particularly footwear completely tax-free immediately.
Vietnam currently accounts for about 20% of total exports to ASEAN imports of Chile , the head of imports from Chile and the second largest in volume exports to Chile , after Thailand . Since 2008 – 2013 , trade between the two countries increased by an average of 26.8 % but in 2013 reached 589 million, of which Vietnam’s exports to Chile increased by over 41 % and is taking steps toward weight in the trade balance .