President Bachelet: “We continue to strengthen our ties in a concrete and sustained manner”
President Michelle Bachelet, together with the Premier of the State Council of the People’s Republic of China, Li Keqiang, went to the Marriott Hotel in the Las Condes district of Santiago this morning for the inauguration of the seventh meeting of the China-Chile Bilateral Business Council.
President Bachelet was welcomed by the president of the Federation of Chilean Industry (SOFOFA), Hermann von Mühlenbrock, the president of the Chilean chapter of the China-Chile Bilateral Business Council, Francisco Silva, and business leader He Wenbo.
In her speech, President Bachelet highlighted the importance of the Chinese Premier’s official visit, explaining that yesterday’s talks culminated in the signing of key agreements for the future of both countries. The agreements include the Chile-China Joint Action Plan, which covers areas of common interest, such as education, innovation, science and technology; and the double taxation avoidance agreement, which will stimulate further capital investments by China in Chile.
President Bachelet also announced that from July 1 charges for tourist visas will be eliminated and that Chinese citizens with valid documentation for the US and Canada will no longer require a tourist visa to visit Chile.
“We continue to strengthen our ties in a concrete and sustained manner. Our Free Trade Agreement, for which the final exemption period entered into force on January 1 this year, has become the cornerstone of our bilateral trade, offering better access for new products, particularly agricultural and agro-industrial products. And all of this has helped make China our foremost trade partner,” she explained.
Since the FTA came into effect in 2005, China’s trade with Chile has grown on average by 17% per annum and now accounts for 23% of Chile’s total foreign trade. Furthermore, the Supplementary Agreement on Investments signed in February 2014 has made substantial improvements to the 1995 Investment Protection and Promotion Agreement. Under the new agreement, investments made in either country are protected according to the existing legislation in each country.
President Bachelet declared that “we can go further. We are working towards consolidating an appropriate institutional framework to boost trade between our two nations to ensure that our FTA with China continues to stimulate reciprocal trade and investments.”
Referring to the 45 year history of Chile’s bilateral relationship with China, President Bachelet noted that Chile was the first South American nation to recognize the People’s Republic of China and establish diplomatic relations; the first country to sign a Free Trade Agreement with China; and that Chile also supported China’s membership of the World Trade Organization.
President Bachelet emphasized that “China’s support is important for Chile in achieving the long-sought-after goal of physically integrating South America, via bi-oceanic corridors, from Brazil to the coast of Chile. This will allow us to advance towards consolidating Chile’s position as the gateway to Asia.” She added that “this integration will require major infrastructure works in the region and in Chile, which opens up interesting opportunities for Chinese investors.”
President Bachelet ended her speech by reiterating that “our bilateral relationship has a wide-ranging and favorable future for both countries. As was the case 45 years ago, when Chile was the first South American country to establish diplomatic relations with China, we shall forge ahead, strengthening the foundations of our diplomatic relations and working responsibly for the long-term.”