Chile to enhance trade ties with Lanka

Chile is keen on enhancing its trade ties with Sri Lanka and considers Colombo as a potential market for its mediterranean climate fruits, said Ambassador of Chile Jorge Hein addressing a media conference on bilateral trade and co-operation in Colombo recently.

He said Sri Lanka is Chile's leading trading partner in Latin America and the initiative to strengthen bilateral trade and cooperation will benefit the economies of both countries.

Trade between both countries reached US$ 40 million in 2006 and of Sri Lanka's US$ 16 million exports to Chile 75 percent was tea.

Chile, Latin America's best performing economy with a 5 percent economic growth rate from 1990 to 2006 and a GDP of US$ 140 billion is a leading exporter of fresh fruits. Sri Lanka's economy needs to be more liberal and de-regulated to be competitive in world trade and attract investments to the country.The tariff on food items that Sri Lanka imports from Chile is very high and it is a hindrance to promote trade between the two countries.

Sri Lanka and Chile signed a MoU to facilitate bilateral agricultural trade and co-operation in April. Chile has signed several free trade agreements with countries granting duty free access for business and exports.

Chile will share knowledge with Sri Lanka and exchange technological know-how for agricultural and other industrial development which will strengthen trade and investment between the two countries, the ambassador said.

Minister of Agriculture Maithripala Sirisena has been invited to visit Chile this year and a chamber delegation will tour the country in October to promote trade and investment.

Hein said both countries have a lot in common and agriculture which is a primary feature could be developed through co-operation.

Sri Lanka can consider Chile a springboard to reach other markets in the Latin American region, he said.