A free trade agreement (FTA) between Korea and Chile that went into effect on April 1, 2004 has had positive effects on both countries, according to the Korea International Trade Association (KITA).
In a recent report, KITA said Korea's exports to Chile grew 58.7 percent over the 11 months since the FTA went into effect, while imports from the South American country increased 54.3 percent.
Korea's Chile-bound shipments totaled U.S. $735 million in February 2005, while imports from Chile increased to $1.75 billion during the same period.
Exports of Korean cell phones increased to 225.7 percent, while color televisions soared 110.4 percent. As tariffs were lifted under the FTA, Korea's share in the Chilean mobile phone market increased from 8.6 percent to 18.1 percent, and in the TV market by 6 percent to 15.8 percent. Since washing machines are not on the FTA list, Korea's share in the market declined from 71 percent in 2002 to 47.2 percent in 2004.
KITA director-general Hyun Oh-seok said the Chilean FTA's success suggested Korea should sign more agreements with other countries. (The Chosun Ilbo)
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