The five-year-old Korea-Chile free trade agreement should be considered one of the most successful FTAs to date, the head of the Korea Chamber of Commerce and Industry said yesterday.

"Bilateral trade volume, which was merely valued at $1.6 billion (five years ago) jumped four-fold to $7.2 billion last year, making Korea Chile`s fifth-largest trade partner," Sohn Kyung-shik said at his opening speech for a luncheon held with the country`s business leaders for the visiting Chilean President Michelle Bachelet.

Sohn said that the FTA has helped diversify product choices for Korean consumers, along with providing the privilege to buy better quality goods at more competitive prices.

"Such a phenomenon shows the benefits of globalization and market liberalization for the two countries," Sohn stressed.

"Based on such successful trade expansion, the two countries now must explore ways to build ties for investments and the development of natural resources in various areas."

One of the key successes of the FTA, cited by business leaders yesterday, was Chilean wine. The South American tipple currently occupies 21 percent of Korea`s wine market.

President Lee Myung-bak and his Chilean counterpart yesterday agreed to revise the bilateral FTA to reflect the changes that have occurred since the deal took effect in 2003. Both leaders said revisions would help further improve economic ties.

(sohjung@heraldm.com)



By Yoo Soh-jung