The leaders of Chile and Vietnam signed a trade agreement on November 11 in Honolulu, Hawaii after 3 years of negotiation.
Chilean President Sebastian Pinera and Vietnamese President Truong Tan Sang formally inked the accord to lift tariffs on thousands of goods when they met in Hawaii on the sidelines of the 2011 Asian Pacific Economic Cooperation (Apec) Summit.
The signed agreement will eliminate tariffs on more than 9,000 products at various timeframe. Within three years, the two countries will offer preferential taxes to each other for service and investment, according to AP.
Chile committed to eliminate 99.62 percent of tariff lines in 10 years time. Of which, imported goods from Vietnam will enjoy zero tax of 83.54 percent tariff lines immediately after the accord comes into effect.
Vietnam committed to eliminate 87.8 percent tariff lines for imported goods and services from Chile within 15 years once the agreement comes into effectiveness.
Vietnam sold $94 million worth of goods to Chile and imported more than $255 million from the South American nation in the first 9 months of this year. Of which, Vietnam mainly exported garment and textile, footwear and imported seafood, animal feed, wood, iron and steel, the general Department of Vietnam Customs said.
Two-way trade between Vietnam and Chile has achieved positive progress to nearly $400 million in 2010 from$20 million in 2000, the 10 year average growth of 41 percent.