South Korea-FTA with Chile.

SOUTH KOREA-FTA WITH CHILE.

The free trade agreement (FTA) between Chile and Korea has affirmed that FTAs are the solution for the global financial crisis that has been shaking the world for a couple of months now, said the Chilean Ambassador to Korea .

Addressing both Korean and Chilean attendees of the conference on the fifth anniversary of the FTA between the two countries, Ambassador Adolfo Carafi said, ``Our governments have full confidence in FTAs as a tool to advance their economic development.

``The global financial crisis will certainly put the treaties to the test, but countries with signed FTAs will be able to better face the crisis by taking benefits of tariff reductions already in place and those being expanded in the mid-term period.’’

According to the Ministry of Foreign Affairs and Trade, bilateral trade topped $ 7.1 billion last year, compared with $1.8 billion in 2003.

Korean exports to Chile have also surged, from $500 million in 2003 to $3 billion last year, and Chilean exports to Korea from $1.3 billion to $4.1 billion.

Trade Minister Kim Jong-hoon also recognized the success of Korea-Chile FTA, which set an example for other free trade negotiations that are either complete or under way.

Korea-EU FTA negotiations are currently underway, and the Korea-U.S. FTA awaits ratification by the legislative bodies of both countries. Negotiations will begin this year with Australia and New Zealand .

Chilean agricultural products such as grapes, pork and wine have become commonplace in grocery stories and markets in Korea . For example, Chilean wines captured 18 percent of the local wine market last year, up from 7 percent in 2003.

Conversely, Korean automobile sales have grown to lead the Chilean market, exceeding Japanese products since 2007.

Also present at the conference held in Seoul , Friday, was Mario Matus, incumbent Chilean ambassador to the World Trade Organization.