The Protocol of the Government of the People's Republic of China and the Government of the Republic of Chile on Amending the Free Trade Agreement and the Supplementary Agreement on Free Trade Agreements on Trade in Services shall come into effect on March 1 and China will gradually cancel the part of Chile within three years. Wood product tariffs.
This is the second free trade zone upgrade agreement implemented by China after the upgrade of China-ASEAN Free Trade Area. It is also the first free trade zone upgrade agreement signed between China and Latin American countries. The Protocol will further explore the potential of bilateral economic and trade cooperation, enhance the level of trade liberalization and facilitation between the two countries, and enrich the comprehensive strategic partnership between the two countries, which is of great significance for further deepening the economic and trade cooperation between China and Latin America.
After the entry into force of the Protocol, China will gradually cancel some tariffs on wood products within three years, and Chile will immediately abolish tariffs on textiles, clothing, home appliances and sugar products. The products that implement zero-tariff mutual property will reach 98%. The China-Chile Free Trade Zone will become the free trade zone with the highest level of open trade in China. In terms of trade in services, the two sides further expanded and enhanced the number and level of service trade commitment departments on the basis of the original service trade supplement agreement. The Chinese side is further open in more than 20 departments including commercial legal services, entertainment services and distribution. The company has made a higher level of open commitment in more than 40 departments including express delivery, transportation and construction. In addition, the Protocol also revised and supplemented the rules of origin, economic and technical cooperation, and added new rules on e-commerce, competition, environment and trade.
The China-Chile Free Trade Agreement was signed in 2005 and came into effect in 2006. In order to promote cooperation between the two countries in the field of service and investment, the two sides signed a supplementary agreement on service trade and investment in April 2008 and September 2012 respectively. In November 2016, China and Chile launched the FTA upgrade negotiations and signed the Protocol in November 2017.