Originally from World Arbitration And Mediation Review (WAMR)

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AN APPROACH TO INTERNATIONAL

ARBITRATION: CHINA&LATIN AMERICA
By Nicolás Ossa G.∗

I. INTRODUCTION
The Free Trade Agreement between Chile and China last August was
ratified unanimously by the Chilean Congress and has been in force since
October 1, 2006. It is the first treaty of this kind that China has signed with
a non-Asian country. With 1,315,000,000 inhabitants and a sustained
economic growth of 8-10 % over the last decade, China is undoubtedly an
important player in global economic policy. For Chile, the possibilities for
investment are tremendous. Chile expects to increase its scale of production
to allow China to take advantages of the enormous variety, quality and
quantity of Chilean natural resources.
II.MUTUAL BENEFITS OF THE CHINA-CHILE FTA
In 2005, commercial exchange between Chile and China reached $7
billion (U.S.), making the People’s Republic of China (PRC) Chile’s second
largest commercial partner, after the United States. The conclusion of the
FTA with the Asian power is projected by Chileans as central to Chile’s
ability to sustain its growth of exports. The FTA grants to Chilean exporters
an unquestionable advantage over its competitors, including preferential
access to the PRC market while offering certain permanent rules for the
development of business and the resolution of disputes. It is believed that
the FTA with China will allow Chile to expand its exports to agriculture,
livestock, forest, and fishing products. In the past, Chile exported primarily
copper and cellulose to China. Chile already had preferential access to
markets representing almost 70% of the world-wide gross internal product
(GIP) before signing this agreement. Chile has signed free trade agreements
with countries representing 70% of the world-wide GIP, including the
United States, the European Union, Korea, and the Mercosur Union.
Having concluded the FTA with China, that number has risen to 75%,
making Chile the most commercially-integrated economy in the world.