Tariffs on most exports between Vietnam and Chile will be lowered to zero percent under the Vietnam-Chile free trade agreement which has just been approved by the Vietnamese Prime Minister.

Under the FTA signed on November 11, 2011, Chile has committed to removing 99.62 percent of tariff lines for imports from Vietnam within ten years. Immediately after the agreement takes effect, 83.54 percent of tariff lines on Vietnam’s exports to Chile will be cut to zero percent.

Meanwhile, Vietnam will also eliminate 87.8 percent of tariff lines for Chile’s goods within 15 years. Among the remaining 12.2 percent of tariff lines, 4.08 percent of tariff lines are included in the exclusion list, 3.37 percent of tariff lines will maintain their base rates and 4.75 percent of tariff lines will have the tax rates reduced.

The two countries will offer incentives in investment and services sectors three years after the agreement takes effective.

According to Vietnam’s Customs General Department, two-way trade between the two countries rose from 18.81 million USD in 2001 to almost 475 million USD over the past decade.

Vietnam’s total exports to Chile reached 137.5 million USD last year while its imports from the South American country were worth more than 335.7 million USD.

Last year, Vietnam exported textile and garments, footwear, seafood, machinery and equipment and coffee to Chile, and imported metal, scrap iron, wood and wood products, animal feed and fruit and vegetables./.