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China and Chile have agreed to remove tariffs in October and to advance their free trade agreement talks.

 

Under their cargo trade agreement, Chile has promised to remove the tariff rates of 5,891 products imported from China as of October 1.

 

In return, China will reduce the tariff rates of 2, 806 products imported from Chile to zero this year and remove the tariffs of another 1,947 products next year.

 

Most of the products are farm produce, petrochemical, electronic and machinery products, said sources with China's Ministry of Commerce.

 

In ten years, 97 percent of the cargo items involved in the bilateral trade will be gradually exempt from import tariffs, said the agreement.

 

Since China and Chile initiated free trade talks in December 2004, both sides have gone through five rounds of negotiation and reached consensus on cargo trade.

 

Negotiations on service trade and investment will start next month. Chile is the first Latin American country to sign free trade agreements with China.

 

(Xinhua News Agency September 11, 2006)