Australia - Chile FTA
Overview
Chile is Australia’s third largest trading partner in Latin America, with two-way trade in goods and services valued at $574 million in 2006. The Australia - Chile FTA entered into force on 6 March 2009, as Australia’s first FTA with a Latin American country. This FTA presents Australia with new trade and investment opportunities in Chile, and enhances Australia’s relationship with Latin America in general.
Key outcomes for agricultural products
The FTA with Chile delivers the most comprehensive outcome on goods and tariff reductions in any free trade agreement that Australia has negotiated with another agricultural producing country since the Closer Economic Relations Agreement with New Zealand signed in 1983.
For Agriculture, the FTA delivers Australian agricultural exporters an advantage over, or at least tariff parity with, all of Chile’s other FTA partners, such as the United States and New Zealand. The FTA results in the immediate elimination of Chile’s tariffs for all meat and wine products, as well as on key dairy export lines.
For beef, Chile has agreed to establish recognition of Australia’s beef grading system within one year of the FTA entering into force. This will provide the Australian red meat industry with significant cost savings when exporting to Chile.
Chile’s tariffs for all horticultural products were eliminated immediately upon entry into force, as were Australia’s. Before the FTA, Australian tariffs on horticulture products were already very low - zero in most cases. In the case of grapes, where Chile has access but has not exported to date, Australia has secured a phase out over 6 years. Other Chilean horticultural products do not currently have quarantine access to Australia.
The full text of the Australia – Chile FTA is available online.