Chile, Thailand to sign free trade agreement

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Chile, Thailand to sign free trade agreement

SANTIAGO, September 13, 2013 (AFP) - Chile and Thailand have closed a free trade agreement which they will sign on October 4, when Chilean President Sebastian Pinera travels to the Asian nation, Chile's foreign ministry said.

The agreement, announced Monday, is part of Chile's attempt "in recent years to expand access to Chilean products in the Asia Pacific," Foreign Affairs Minister Alfredo Moreno said in a press conference.

After the signing, 90 percent of bilateral trade will be tariff-free. Remaining tariffs will be cut gradually, according to Moreno.

Pinera will sign the agreement during an official visit to the country from October 4 through 5, when he will meet with Thai business people and Prime Minister Yingluck Shinawatra.

Negotiations between the two countries began in April 2011 in Bangkok.

Trade between Chile and Thailand exceeded $800 million in 2010, with Chilean exports to the Asian country totaling $287 million and imports to Chile reaching $528 million.

Chile has already established trade agreements with Vietnam and Malaysia.


-- (c) Copyright AFP 2013-09-13

[Mampara]

Another big plus for Prime Minister Yingluck Shinawatra and the government.

[MaxLee]

Rice or rubber????

[1weatherman]

And Chile will be exporting to Thailand...bat guano?

[GrantSmith]

There'll be an even larger presence of Chilean wine once this is put in place...

[Spare]

And Chile will be exporting to Thailand...bat guano?

And Chili will be exported to Thailand?

Sound familiar.... Send coal to Newcastle?

[h90]

There'll be an even larger presence of Chilean wine once this is put in place...

yes they have good wine Lets hope it is included.

[GentlemanJim]

And Chile will be exporting to Thailand...bat guano? alt=whistling.gif width=19 height=18>

Wine!

Chile is the largest exporter/importer of Wine to China...doesn't sound much! it is literally billions per year. Wine from Chile in China is the number 1 brand and accounts for more bottles than from any other nation. Currently wine in Thailand attracts a 397% tariff on import unless it is Australian which if memory serves me right is down at 50ish % and will be around 30% in two years. The Government inChile are extremely astute at having their embassy's negotiate trade treaties, where the rest of South America are still asleep. This will be instigated by Chile, not Thailand and it will be worth hundreds of millions.

[MESmith]

There'll be an even larger presence of Chilean wine once this is put in place...

yes they have good wine Lets hope it is included.

I imagine there'll be a "special tax" for wines.....

[Om85]

Great!! I'll make much more money!! Vamos Chile, a por ellos

[h90]

And Chile will be exporting to Thailand...bat guano? alt=whistling.gif width=19 height=18>

Wine!

Chile is the largest exporter/importer of Wine to China...doesn't sound much! it is literally billions per year. Wine from Chile in China is the number 1 brand and accounts for more bottles than from any other nation. Currently wine in Thailand attracts a 397% tariff on import unless it is Australian which if memory serves me right is down at 50ish % and will be around 30% in two years. The Government inChile are extremely astute at having their embassy's negotiate trade treaties, where the rest of South America are still asleep. This will be instigated by Chile, not Thailand and it will be worth hundreds of millions.

Well I guess it is a question on what you want to pay for the free trade agreement. I doubt such agreements are made without some donations to the right people. And I don't mean specifically Thailand.....If you are a big company in country X and benefit from free trade to country Y you are sure willing to pay some Mega Baht to the decision makers.

[craigt3365]

My wine supplier just told me our fav brand is going up by about 50% due to the recently announced increased tariffs. Doesn't look like wine is included in this deal. Unfortunately!!!!

Sent from my traveling tab.

[HeijoshinCool]

And Chile will be exporting to Thailand...bat guano?

Wine.

Of course, this will fall in that "ten percent" that is free of tariffs. They'll probably raise the tax on wine, just to make up for the 90%. After all, most wine is drunk by us outsiders, and we're all rich.

Ironically, Chile is one of those countries I am looking at as a possible final destination ----- just for that reason.

Edited September 13, 2013 by HeijoshinCool

[GrantSmith]

My wine supplier just told me our fav brand is going up by about 50% due to the recently announced increased tariffs. Doesn't look like wine is included in this deal. Unfortunately!!!!

Sent from my traveling tab.

What are you drinking and where are you buying it from?

50% increase? Jesus wept!

[chainarong]

Another irrelevant trading partner, joins a long list of irrelevant trading partners , set to become another file on the shelf at the ministry of commerce.

[h90]

My wine supplier just told me our fav brand is going up by about 50% due to the recently announced increased tariffs. Doesn't look like wine is included in this deal. Unfortunately!!!!

Sent from my traveling tab.

that is sad....but expected....these high taxes and customs duty means: Lao Kao for the poor, good things only for the elite.

Exactly the opposite of their speeches about being equal.

[lee b]

Chiliean wine goes down pretty well, lets hope the price does as well

[mrtoad]

Another opportunity for a few more shopping trips. Interesting points made about wine duty, which I understand is going to raise prices significantly. Of course, the alcohol issues within country which are not addressed is with Lao Khao, but that wouldn't be sensible to address that in terms of popular politics.

[craigt3365]

My wine supplier just told me our fav brand is going up by about 50% due to the recently announced increased tariffs. Doesn't look like wine is included in this deal. Unfortunately!!!!

Sent from my traveling tab.

What are you drinking and where are you buying it from?

50% increase? Jesus wept!

Sorry for the late reply. We are drinking the cheapest Chilean wine my supplier has. Use to be 300B. Now 420 or 440. Price is still being worked out. It is very good for the price. Or use to be!!! The supplier is in bangkok.

[richard_smith237]

The big cost with imported wines is not the Import tax but the Alcohol tax (this is why domestic wines are priced so highly).

Thus I expect very little to change in the pricing of wine from Chile, which is disappointing as there is some very drinkable Chilean wine out there.

[GrantSmith]

My wine supplier just told me our fav brand is going up by about 50% due to the recently announced increased tariffs. Doesn't look like wine is included in this deal. Unfortunately!!!!

Sent from my traveling tab.

What are you drinking and where are you buying it from?

50% increase? Jesus wept!

Sorry for the late reply. We are drinking the cheapest Chilean wine my supplier has. Use to be 300B. Now 420 or 440. Price is still being worked out. It is very good for the price. Or use to be!!! The supplier is in bangkok.

That's ridiculous! Given that the Excise Department hasn't even calculated yet how to apply the new increase! Still cheap but possibly more to it? Opportunity to raise the prices on the back of a government announcement...

The big cost with imported wines is not the Import tax but the Alcohol tax (this is why domestic wines are priced so highly).

Thus I expect very little to change in the pricing of wine from Chile, which is disappointing as there is some very drinkable Chilean wine out there.

I've always been surprised that the "excise tax" is applied to both domestic and imported products, though this being Thailand I know I shouldn't be, however from a nationalistic point of view this really makes their products unattractive and overpriced.

Given that Australian, New Zealand and now Chilean wines benefit - or will soon benefit - from FTA's this will be putting Australian wine on a level playing field - zero tariffs on wine (amongst a raft of other imported products) with domestic wine in less than 18 months, New Zealand won't be too far behind that - and god help us all when the Sauvignon Blanc flood gates are opened completely - compared to the rest of the import market France, Italy and the USA (54%) who all suffer more from the "import" tariffs.

I think the Chinese wine market will kick off soon too, there's been a number of advancements in their neck of the woods and a number of wineries are popping up all over the place.

[craigt3365]

It is a complicated formula, but I've heard the details from 2 reliable sources. The new rates r in effect now, so these suppliers have to increase prices now. My BKK supplier is very price sensitive. No store. So has about the best prices available.

[GrantSmith]

It is a complicated formula, but I've heard the details from 2 reliable sources. The new rates r in effect now, so these suppliers have to increase prices now. My BKK supplier is very price sensitive. No store. So has about the best prices available.

Complicated? Understatement of the year! A lot of ambiguity as to who gets taxed what but suppliers do not have to raise prices if they don't want to, they in theory could absorb the increase if their products are already priced accordingly.

Not true for everyone but having read the formula, I know there's a couple of suppliers out there that could absorb the increase but have chosen not to...

It wasn't a well thought out formula...

[craigt3365]

It is a complicated formula, but I've heard the details from 2 reliable sources. The new rates r in effect now, so these suppliers have to increase prices now. My BKK supplier is very price sensitive. No store. So has about the best prices available.

Complicated? Understatement of the year! A lot of ambiguity as to who gets taxed what but suppliers do not have to raise prices if they don't want to, they in theory could absorb the increase if their products are already priced accordingly.

Not true for everyone but having read the formula, I know there's a couple of suppliers out there that could absorb the increase but have chosen not to...

It wasn't a well thought out formula...

Not well thought out at all. Probably trying to raise money to cover he rice scam?

Pricer bottles have room to absorb the increase, but probably not the cheaper ones?? I heard it is working out to something like 200B per bottle.

Im in Czech Republic now. Heaven. Cheap beer and great wine. But its cold!