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Beginning October 1, China will apply agreed tariffs on 7,391 products imported from Chile. Tariffs on 2,834 products relating to metals, nonmetal minerals and non-ferrous metals will drop to zero.

The Chinese Ministry of Finance said in Beijing Wednesday that under the free trade agreement between China and Chile, 97 percent of bilateral trade items will be gradually exempted from import tariffs in the next ten years.

The ministry said China will also reduce tariffs on 1,960 products imported from Chile - such as some woven products and vegetables - by 50 percent beginning October 1.

Tariffs on 975 Chile-made products like films and construction materials will be cut by 20 percent, and 10 percent will be shaved off tariffs on another 1,622 products including grape wine, medicines and commodities.

According to the bilateral free trade agreement that came into effect on October 1, Chile will apply agreed tariffs on 7,750 products imported from China. Tariffs on 5,891 products such as vegetables, fruit, mechanical and electronic equipment will drop to zero immediately.

The ministry said bilateral trade between China and Chile had been growing at over 20 percent a year since 2000. Most of the products exported from Chile to China are mineral and forestry products, while the products exported from China to Chile are textiles, light industrial products, electronic and machinery products.

Since initiating free trade talks in November 2004, China and Chile went through five rounds of negotiations before reaching consensus on November 18, 2005. Chile is the first Latin American country to sign a free trade agreement with China.

(Xinhua News Agency September 21, 2006)