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Chile: Trans-Pacific Agreement will open the Japanese market
According to estimates, Chile sends 17% of all its exports to the member countries of the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP), i.e. Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.
These 11 economies have a population of 498 million people and a combined GDP of US $ 10.6 trillion, which represents 13% of the global economy, thus, the strengthening of commercial ties and the gradual elimination of taxes on certain products will greatly benefit Chile.
The president of the Association of Fruit Exporters of Chile AG (ASOEX), Ronald Bown, said that "Chile already has a zero tariff for practically all our fruit products. There's a pending issue with Japan, regarding clementines, but it must be solved soon." Government authorities such as Paulina Nazal, the general director of Economic Relations of the Ministry of Foreign Affairs, said that "once the Trans-Pacific Agreement enters into force, the market that will open the most will be Japan and the products that will penetrate it more aggressively will be fruits, dairy products, and meats."
Nazal also said that even though Chile already had bilateral treaties with the ten other countries in the TPP, the signing of the treaty would improve many of the tariff preferences that were not contemplated in the bilateral agreements.
In addition, the CPTPP will especially open the markets of different countries such as Japan, Malaysia and Vietnam to Chilean products. "This treaty consolidates our 20 year old strategy of international insertion," said Nazal, noting that Chile, which is a small country, had managed to become the world's leading supplier of cherries, blueberries, and salmon.
Source: SimFRUIT with info from La Segunda
Publication date: 3/13/2018
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