The Trade Effects Study On The Free Trade Agreement Between China And Chile

In 2005,the governments of China and Chile officially signed the Free Trade Agreement between China and Chile.The Agreement formally implemented in October 1st, 2006. The Agreement is our second free trade agreement with other countries and it is the first agreement signed with the Latin American countries. Since China-Chile Free Trade Area established 10 years ago, the bilateral trade has expanded year by year. The bilateral trade amount achieved to 22.83 billion dollars in the first three quarters in 2014 which is 2.58 times of the bilateral trade before the Agreement runs (2006). At present, Chile has become China’s second largest trading partner in Latin America, while China has become the first main trade partner country of Chile.In 2008, Chinese and the Chilean governments also signed free trade agreement supplementary agreement on service trade and investment. The two sides opened a number of projects in the fields of service to each other, and encourage to invest to each other, but the rich theoretical provisions have not been fully implemented. The main reason is that our service industries are less than those in developed countries. In 2013 our country’s service industry only accounted for the world service industry’s 5.92%, and it mainly based on the traditional service industry like tourism and transportation, which accounted for more than 50%. In Chile’s service industry, tourism, transportation and other traditional service industry occupy a dominant position. At the same time, the geographic remoteness, language and culture have become the bilateral service trade barriers. In the field of investment, the amount of investment to Chile from China is very little and bilateral cooperation needs to be strengthened.In order to promote the level of bilateral economic and trade cooperation, China should take some measures like expanding the trade surplus in merchandise trade promoting trade balance, enhancing the extent of intraindustry. In affects of service trade, we should upgrade service trade structure optimization and explore cooperation possibilities in education. In the area of investment, China can take advantages of our excellent team in construction and our rich experience in new energy to invest to Chile. Chile may invest in our country in the aspect of agricultural products and agricultural modernization. China and Chile could cooperate in many fields to promote further development of bilateral economic and trade relations.