Thai Prime Minister Yingluck Shinawatra and Chilean President Sebastian Pinera on October 4 to sign a free trade agreement which immediately lifted tariffs on more than 90 percent of Chilean products to be exported to the Asian country.

The inking of this agreement during the Chilean President’s visit to Thailand, will create opportunities for both countries, according to a statement released in Santiago, Chile.

Chilean exporters now hope to increase their sales of agricultural products to Thailand, with the FTA offering them preferential access to a market of more than 70 million people.

Thailand will also gain a better competitive edge after signing the FTA.

The FTA with Thailand is the fifth that Chile has signed with an ASEAN member country, following in the footsteps of Singapore, Malaysia, Vietnam and Brunei. It is the first such agreement that Thailand has agreed with a Latin American nation.

Bilateral trade between Chile and Thailand exceeded 1 billion USD in 2012 for the first time. Of this amount, Chilean exports were worth 315 million USD.-VNA