Trade between Thailand and Chile to double as FTA starts

[webfact]

Trade with Chile to double as FTA starts
PETCHANET PRATRUANGKRAI
THE NATION


Commerce Minister Apiradi Tantraporn

BANGKOK: -- ANNUAL trade between Thailand and Chile should double to US$2 billion (Bt71 billion) in the next three to five years, thanks to the free-trade agreement (FTA) between the countries, which comes into force today.

"Bilateral trade and investment should grow after the liberalisation of both markets, since Chile can be a gateway for Thailand to penetrate Latin American countries.

"While it will help Thailand open opportunity to be part of the Trans-Pacific Partnership in the future, as Chile is already part of this, the world's largest trade bloc," Commerce Minister |Apiradi Tantraporn said yesterday.

The free-trade pact with Chile is Thailand's second bilateral FTA with a Latin American country - the other being with Peru - and the seventh overall, after the agreements with China, India, Japan, Australia and New Zealand.

The pact should also help increase the Kingdom's trading competitiveness with key rivals, including China and Vietnam, as Thailand has negotiated better benefits than those contained in Chile's FTAs with those two countries, she said.

Thai rice should also gain greater market access to Chile, as import tariffs for the produce will be reduced to zero within five years, she added.

Besides the trade in goods, the FTA will also cover service-sector liberalisation, while negotiations between Thailand and Chile on investment liberalisation will be held within the next two years.

Under the pact, tariffs for 90 per cent of trade in goods - 7,129 out of a total of 7,855 items - are being cut to zero immediately. For another 296 items, tariffs will gradually be reduced to zero over a three-year period, while those on a further 283 items will fall to zero in five |years.

For the remaining 147 items, which are regarded as sensitive goods, import duties will be brought down to zero in eight years' |time.

Under service-sector liberalisation, Thai enterprises will be able to hold 100-per-cent ownership in service businesses in Chile, in sectors such as legal services, consultancy, engineering, computer services, retail and wholesale, and services related to the production sector.

Apiradi said that Thai massage, Thai kick-boxing and other recreational services in which Thais have high expertise, should be able to open up more to businesses in Chile, thanks to the pact.

She also suggested that Thai businesses and investors urgently explore the Chilean market, as the country is rich in natural resources and is a trading centre in South America.

High potential goods

Thai goods with the highest export potential to Chile are pickup trucks, cement, electrical appliances, plastic pellets, rubber products, as well as canned and processed foods.

Service businesses with opportunities to grow in Chile are engineering, logistics, energy, mining and retail, hotels and hospitality, sports and recreation.

Chile is Thailand's third-largest trading partner in Latin America, after Brazil and Argentina, while the Kingdom is Chile's largest trading partner among Asean countries.

Bilateral trade was worth about $960 million last year, with Thailand enjoying a surplus of about $300 million.

Source: http://www.nationmultimedia.com/business/Trade-with-Chile-to-double-as-FTA-starts-30272279.html


-- The Nation 2015-11-05

[eliotness]

Some good wines come out of Chile. I suppose it's hoping too much to expect them to be sold at zero duty tariff. Some good beef also, oh dreaming again !!!

[webfact]

Free trade pact with Chile now in effect



BANGKOK: -- Free trade agreement signed between Thailand and Chile in October 2013 took effect yesterday with tariff of more than 90% items of products traded between the two countries now cut to zero.

According to Commerce Minister Apiradi Tantraporn, products from Thailand that will benefit from the free trade agreement include automobiles, rubber, canned seafood, cement, plastic pellets, gems and jewellery.

She said under the FTA signed in October 2013, a total of 7,855 items will have import tariffs waived for 92.48%, effective yesterday.

For the remainder, Thailand and Chile agreed to a gradual cut in the tariff to zero in 2020 and products on sensitive list within eight years from now.

As the Bangkok Post reported, immediate cut to zero export tariff include automobiles, auto parts, canned seafood, construction materials, plastic pellets, polymers, electrical appliances, rubber and rubber products.

Thailand will also benefit from imported raw materials such as copper and ore.

The agreement also allows for the service sector such as Thai massage service, sports service and recreational activities such as Thai boxing, the minister said.

Chile is the country’s third-largest South American trade partner after Brazil and Argentina, she said, and added that two-way trade in 2014 amounted to US$960 million.

Thailand was also speeding up FTA talks with Pakistan and Turkey with conclusion expected within one year with Pakistan, and one and a half years with Turkey, Mrs Apiradi added.

Source: http://englishnews.thaipbs.or.th/free-trade-pact-with-chile-now-in-effect


-- Thai PBS 2015-11-05

[canopus1969]

Cheaper wine

[Maestro]

Some good wines come out of Chile. I suppose it's hoping too much to expect them to be sold at zero duty tariff. Some good beef also, oh dreaming again !!!

The details of this FTA must have been published somewhere, in the Government Gazette or on the website of a government agency. Does anybody have a link to it?

I am interested in finding out if and when the import tariff on Chilean wine will be reduced to zero.

[heybruce]

I'm with the rest of you, Chile produces some excellent, reasonably priced wines. However I'm not holding my breath waiting to see them in Thailand at a reasonable price.

[FangFerang]

Curiously, Chile exports a whoppingly larger share of fish fillets than beef....

Heavy sigh.

[khunken]

Some good wines come out of Chile. I suppose it's hoping too much to expect them to be sold at zero duty tariff. Some good beef also, oh dreaming again !!!

The details of this FTA must have been published somewhere, in the Government Gazette or on the website of a government agency. Does anybody have a link to it?

I am interested in finding out if and when the import tariff on Chilean wine will be reduced to zero.

I don't know the answer to that but I do know that it will make little difference as the excise tax on all wines is c300%.

[Ulic]

The good beef in Chile comes from Argentina. But great value wines from Chile.

[Thai at Heart]

Some good wines come out of Chile. I suppose it's hoping too much to expect them to be sold at zero duty tariff. Some good beef also, oh dreaming again !!!

The details of this FTA must have been published somewhere, in the Government Gazette or on the website of a government agency. Does anybody have a link to it?

I am interested in finding out if and when the import tariff on Chilean wine will be reduced to zero.

They have had a trade deal with oz and the wine prices didn't drop yet did they?

[Aussieroaming]

Some good wines come out of Chile. I suppose it's hoping too much to expect them to be sold at zero duty tariff. Some good beef also, oh dreaming again !!!

The details of this FTA must have been published somewhere, in the Government Gazette or on the website of a government agency. Does anybody have a link to it?

I am interested in finding out if and when the import tariff on Chilean wine will be reduced

9 Chilean wines have had the tariff reduced to zero effective 2015 under the FTA. Other alcoholic drinks will have tariff reductions progressively over the next 8 years. Google SOFOFA Chile and Thailand FTA for more details.

[TallGuyJohninBKK]

Under service-sector liberalisation, Thai enterprises will be able to hold 100-per-cent ownership in service businesses in Chile, in sectors such as legal services, consultancy, engineering, computer services, retail and wholesale, and services related to the production sector.

No mention of whether Chileans will get reciprocal rights here in Thailand, as a lot of those kinds of businesses mentioned above are, AFAIK, currently off-limits to 100% foreign ownership by most expat nationalities.

PS - Don't forget about chilean sea bass....

[eliotness]

The amount of fish exported by Chile is rising fast. I guess they don't have a problem with the EU. Their biggest export trade appears to be with China, but I guess that will be mainly minerals such as copper. They import electronics, machinery and trucks/cars, so I guess the trade won't be all one way, but I suspect that Chile will come out of it much better than Thailand.

I know Tesco in the UK sells a lot of reasonably priced Chilean wines, so it would be great if Thai Tesco would do the same.