Why Free Trade Agreements?mddb.apec.org/Documents/2015/SOM/DIA4/15_som_dia4_017.pdfWhy Free Trade...
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___________________________________________________________________________ 2015/SOM3/DIA2/017 Session 1 Why Free Trade Agreements? Submitted by: Chile Dialogue on Regional Trade Agreements and Free Trade Agreements Cebu, Philippines 2 September 2015
Transcript of Why Free Trade Agreements?mddb.apec.org/Documents/2015/SOM/DIA4/15_som_dia4_017.pdfWhy Free Trade...
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2015/SOM3/DIA2/017 Session 1
Why Free Trade Agreements?
Submitted by: Chile
Dialogue on Regional Trade Agreements and Free Trade Agreements Cebu, Philippines 2 September 2015
9/5/2015
1
WhyPaulina Nazal, Senior Official - Chile
APEC SOM Dialogue on RTAs/ FTAs
Cebu - 2 September 2015
FTAs?
22015WE ARE A SMALL ECONOMY
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32015
POPULATION: 18 millions Represents: 0,2% of world population
GDP: US$ 277 thousands millions Represents: 0,3% of world GDP
CHILE´S FIGURES
EXPORTS: US$ 78 thousands millions Represents: 0,4% of world exports
Source IMF (WEO, april 2015), BCCH y Trademap.
The Chilean Experience
1980sPolitical isolation
tariffs loweredunilaterally
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multilateralplurilateral
bilateral
The Chilean Experience
1990sBack in the world
Argentinainvestments
partial trade
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FTAs RTAs
25/64
CanadaUSAMexi
coCentralAmerica
ColombiaEcuador BoliviaPeru
Mercosur
Panamáa
EUTurkey
EFTA
Cuba
ChinaJapanKorea
HK China
Malaysia
P4Australia
Viet Nam
India
VenezuelaPA
Thailand
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94%63%85%
0.9%Bilateral openness
102015EFFECTIVE IMPORT TARIFF RATE
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
8,42%
0,92%
SOURCE: National Customs Service.
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Chile WTO
Since 1949
Why?
So…
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25%
TOOHIGH
1BOUND
!
wto
FTA
1
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wto
GP2
wto
GP3
plus
LABOR
Gender
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LEFT LEFTOUT4
LEFT
4
NOTLEFTOUT
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5 Political capital
5
NONO!
NO!
NO
NO! NO!
Political capital ?
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But,
Do real peoplereally use them
Chile exports to US
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47: 0% MFN tariff
Chile exports to US
47: 0% MFN tariff
51: 0% tariff underthe FTA
Chile exports to US
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47: 0% MFN tariff
51: 0% tariff under the FTA
2: Pay full MFN tariff
Chile exports to US
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FTAAP?TPP
