Chile and Japan FTA

We had some coverage this week in The Packer of the U.S.-Korea free trade pact and some sources have lamented the shabby treatment some U.S. ag commodities got from the deal. All things considered, U.S. fruit and nut exporters should feel pretty good about what they could wrest from the protectionist government in Seoul.

Here is news from Chile about their free trade deal with Japan. Chileans are zen masters of free trade deals, so it is oddly reassuring that even they don't always get what they want.

From the USDA FAS:

According to the Government of Chile, the agricultural sector will be a winner with this agreement, as a 53% of the products send to Japan will have a zero tariff after the implementation of the agreement, other 35% will have preferential access by the application of quotas, that is to say about 90% of Chilean agricultural exports to Japan will benefit. The products that will benefit the most are: meat, salmon, fishmeal, wine. For Japan, almost 90% of their exports to Chile will have a zero tariff after the implementation of the agreement. Japanese cars, will be the biggest winners, Chile imports over US$300 million every year. The fresh fruit industry disagrees with the GOC’s view on the FTA. They argue that this agreement benefits only partially the fruits and vegetable sector. As an example, tariff for table grapes will fall to zero in 15 years and for citrus, tariffs will be negotiated 5 years after the FTA implementation date.