Universidad de Chile analyzes Chile-Korea FTA

“The mission is still incomplete.” This was the verdict of Kim Won-ho, a Korean professor who specializes in Latin America, on the FTA between Chile and Korea. He made his comments during a seminar organized by the Institute of International Studies at Universidad de Chile. The seminar addressed the core indicators of Chile’s first free trade agreement with an Asian country.

The seminar was held Nov. 26 and had a distinguished panel of experts. Also present were many of Chile’s leading academics from the Asia-Pacific area and Mr Andres Zaldivar, President of the Korea-Chile Society.

The first presentation was made by Alejandra Chacón. Ms Chacón is a researcher who recently published an insightful survey on South Korean academics’ perception of their nation’s foreign policy vis-à-vis the ABC (Argentina, Brazil and Chile). Professor Chacón surveyed respondents who were Latin America specialists, in addition to being Korean academics. The landmark study was funded by UCLA. Ms. Chacón spoke about the results of her research findings, focusing particularly on issues related to Chile.

As such, she stated that the new Korean president, President Lee Myung-Bak, has altered the course that Korean foreign policy had previously taken on Latin America. She highlighted its focus on the search for energy resources, which led to its strengthening tied with Brazil.

The study showed that the Korea-Chile FTA had not only improved business ties. It has also increased knowledge of Chile in Korean society, which now has a better image of Chile.

Dr. Kim Won-ho, a Latin America specialist, is an associate professor at the Graduate School of International Area Studies, which is lcoated at Hankuk University of Foreign Studies.

Kim expounded on the Korean vision of the FTA. He stated from the outset that the mission, with regard to the FTA had not yet been completed. He said that while the FTA has had a huge impact on the volume of exports, this trade remains vulnerable, since it is comprised of 73% copper exports.

Mr Kim also pointed out that there are still several areas in which the FTA may develop. He feels Korean investment in Chile, due to the competitiveness of our country, is one option; corporate ties being another.

German King spoke last. Mr King is an ECLAC consultant specializing on Asia-Pacific issues. He spoke about the many benefits that the FTA has brought to Chile. King stated that the improvement in the quality of traded goods, increased exports and exporting companies, and better projections in terms of penetration into the Asia-Pacific were some of the benefits reaped by Chile.

However, King enumerated many challenges which lie ahead, too. He mentioned issues related to safeguards and sanitary and phytosanitary measures, pointing out the dioxin (in Chilean pork) case as an example.

Another point highlighted by King was the importance of increasing openness, especially in times of financial crisis. This is needed, per King, to sustain demand, economic activity, credit, and employment. He feels a powerful aid is to simply avoid protectionism, and then continue on with trade liberalization.