Senate approves new trade agreement between Chile and Indonesia and modernization of the FTA with Canada
On Tuesday November 27, the Senate approved the Comprehensive Economic Partnership Agreement between Chile and Indonesia (CEPA), and the modernization of the Free Trade Agreement (FTA) with Canada (which will include new disciplines in investment, gender and trade, among other areas).
"As the Ministry of Foreign Affairs, we are very satisfied that our country continues to advance along the path of free trade, because we are convinced that these treaties are tools that contribute directly to improving the quality of life of our compatriots," said Minister Roberto Ampuero.
Indonesia, with a population of 262 million inhabitants, is the largest country of the Association of Southeast Asian Nations, member and headquarters of the General Secretariat of ASEAN, APEC's founding economy and Observer State of the Pacific Alliance. It is estimated that CEPA will enter into force within the first quarter of 2019, expanding preferential access to the Indonesian market to more than 3,000 Chilean products.
"Indonesia and Chile have a great opportunity to establish themselves as a platform for commercial exchange between Latin America and Asia Pacific," said Rodrigo Yáñez, Director General of Direcon. He added that, "once CEPA comes into force, Chile will become the first Latin American country to have a Bilateral Trade Agreement with Indonesia in force".
In 2017, Chilean exports to Indonesia totaled US$100 million, 58% more than in 2016. In the same year, imports reached US$210 million, 28% more than in 2016.
Modernization with Canada
With respect to Canada, the modernization of the FTA in force since 1996 was signed last year, which included new disciplines on sanitary and phytosanitary issues, technical barriers to trade and modifications to the chapters on public procurement and investments. In addition, a chapter on trade and gender was incorporated (the first for Canada and the second negotiated by Chile - the first was with Uruguay).
"With the chapter on Trade and Gender, Chile and Canada recognize the importance of incorporating the gender perspective in the promotion of inclusive economic growth," said Rodrigo Yáñez. "They are also committed to joining efforts to increase women's participation in international trade, promote women's entrepreneurship through joint actions and measures aimed at achieving this objective," the authority said.
In 2017, national exports to Canada reached US$1.39 billion, 43% more than in 2016. Imports totaled US$768 million, 20% more than in 2016.