User:PatrickFlaherty/Australia-Chile Free Trade Agreement

The Australia-Chile Free Trade Agreement is a trade agreement between the countries of Chile and Australia. It was signed on July 30, 2008 and will go into effect in the 1st quarter of 2009.

The agreement was intended to go into effect on January 1, 2009, but was delayed due to Chile not being able finish its ratification in time.

Trade between Chile and Australia is modest, involving $856m in 2007. Australia is the fourth largest provider of foreign direct investment in Chile with over $3 billion in 2007.

When enacted, the Agreement calls for Chile to eliminate tariffs on 91.9% of tariffs which cover 96.9% of trade from Australia. Australia will cut 90.8% of tariffs which cover 97.1% of trade from Chile. By year six of the Agreement (2015), all tariffs will be discarded except for Chile’s sugar tariff which will remain subject to its current ‘price band’ system.

Tariffs that will stay in place in Australia will be relating to textile and the clothing industry along with table grapes. In Chile, the agreement will protect the textile and clothing industry and some other manufactured products.

According to the Australian Government, they hope to use the Agreement as a model for other free trade agreements with other countries.

Some disagreements have been caused as a result over the opening of agriculture. Farmers respond TRADE LETTER.

Chile and Australia agreed in Principal to start negotiations on December 8, 2006. Negotiations started on July 18, 2008 and after four rounds of talks, concluded on May 27, 2008.