The Chile-South Korea Free Trade Agreement: An Overview
The Chile-South Korea Free Trade Agreement (FTA) is a trade deal that was established between Chile and South Korea in 2003. The objective of this pact was to create a more favorable business environment between these two countries by reducing barriers to trade and investment, and promoting economic growth.
Benefits of the Chile-South Korea FTA
The Chile-South Korea FTA has several benefits that have been enjoyed by both countries. For instance, this agreement has enabled exporters from Chile to access the South Korean market with much ease, thus increasing their export volumes.
On the other hand, the Chile-South Korea FTA has allowed South Korean companies to tap into Chile`s natural resources and gain access to the Latin American market.
The Chile-South Korea FTA has also encouraged the growth of bilateral investment, particularly in the areas of renewable energy, finance, and technology. This has led to the creation of job opportunities, improved infrastructure, and increased competitiveness.
Impact of Chile-South Korea FTA on the Chilean Economy
The Chile-South Korea FTA has had a significant impact on the Chilean economy. Since the implementation of this trade agreement, Chile`s exports to South Korea have increased significantly. In 2019, Chile`s exports to South Korea amounted to $4.4 billion, up from $2.9 billion in 2010.
Chile is one of the largest exporters of copper in the world, and the Chile-South Korea FTA has allowed Chilean copper producers to access the South Korean market, which is one of the largest importers of copper. This has helped to boost Chile`s copper exports to South Korea.
The Chile-South Korea FTA has also increased the level of foreign direct investment (FDI) between the two countries. South Korean companies have invested in various sectors of the Chilean economy, including renewable energy, telecommunications, and infrastructure.
In conclusion, the Chile-South Korea FTA has been a significant milestone in promoting trade and investment between these two countries. The pact has been mutually beneficial, and it has helped to foster economic growth, job creation, and increased competitiveness in both countries.