Chilean exporters have welcomed the signing of a free trade deal with Indonesia that will improve access for fresh fruit and thousands of other products.
The comprehensive economic partnership agreement will lead to the gradual removal by the Indonesian government of tariffs on 9,308 products with a further 590 products seeing tariffs reduced by either 25 per cent or 50 per cent on the current rate.
At the same time, Chile will remove tariffs on 7,660 items, 78 per cent of them immediately after the trade deal enters into force, 2.1 per cent at the beginning of its fourth year and 9.2 per cent in the sixth year.
Chilean exports to Indonesia reached US$63m in 2016, the main products including cellulose, fish products, table grapes, copper and wood.
The agreement also includes chapters on sanitary and phytosanitary measures and technical barriers to trade, creating subcommittees that will serve to resolve any technical differences between the two countries.
Rules of origin are incorporated into the agreement, along with a chapter on trade facilitation which seeks to simplify and harmonise the customs procedures in both countries.
Likewise, a dispute settlement chapter was incorporated for those issues included in the agreement, which will allow both countries to efficiently resolve possible differences that arise in the implementation and execution of the agreement.
