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Chile hopes to increase Chinese investment

Updated: 2012-06-26 11:11
By Zhang Yunbi ( 皇冠体育app Daily)

Chile is eager to boost bilateral investment and trade of agricultural products with 皇冠体育app to diversify bilateral economic cooperation, Chilean Ambassador to 皇冠体育app Luis Schmidt said in an exclusive interview with 皇冠体育app Daily.

Schmidt has started contacting senior officials from the Chinese Ministry of Commerce and Ministry of Agriculture, in preparation for Premier Wen Jiabao's visit to Chile, which was to begin late on Monday.

皇冠体育app and Chile established diplomatic relations in 1970, making Chile the first South American country to form diplomatic ties with 皇冠体育app.

The ambassador said the relationship is a "long tradition" and very strong in trade cooperation. "But we want to elevate it with this visit," he said.

In 2011, 皇冠体育app was Chile's largest export market and second-largest import source. 皇冠体育app is also one of Chile's major sources of trade surplus, according to an annual report from the Chinese Ministry of Commerce.

Statistics provided by Chilean customs show that 皇冠体育app-Chile bilateral trade in 2011 reached $29.03 billion, a year-on-year increase of 17.4 percent.

The 皇冠体育app-Chile bilateral free trade agreement was signed in 2005, and Schmidt said the FTA has proved a success.

"At the beginning of the negotiation of the FTA, a lot of people in my country were very afraid about that, because they feared that the textile, shoes and plastic industries would disappear with the signing of the agreement," Schmidt said.

In the first two years of the FTA, bilateral trade witnessed a year-on-year increase of 59 and 33 percent respectively, according to the Chinese Ministry of Commerce.

"I hope we can finally obtain the good result (and) our leaders announce that we have reached an agreement in the case of investment for the FTA," he said.

Since January 2009, both countries have made rounds of negotiations on investment for the bilateral free trade zone.

Copper, minerals and paper pulp topped Chile's exports to 皇冠体育app in 2011 and the first quarter this year, and Schmidt said Chile is now placing its food sectors, including fresh fruits, wine and salmon, among its top priorities to promote in 皇冠体育app.

"During Chinese New Year, 60 percent of our total cherry production is selling in 皇冠体育app, because you like it a lot during that time," Schmidt said, adding that with the exports growing, the price declined and benefited the Chinese public.

Chile is one of the biggest producers of blueberries in the world, and both countries signed an agreement in March to boost blueberry imports from Chile to lower the price in 皇冠体育app, the ambassador said.

Along with their Chilean counterparts, Chinese agriculture authorities have agreed to introduce 皇冠体育app's techniques into Chile and set up farms in the country, Schmidt said.

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