Exports to Chile Grow Six-fold

Korea’s exports to Chile increased six times over the last four years since the free trade agreement between the two nations took effect on April 1, 2004.

According to a report on trade between Korea and Chile released by the Korea Trade-Investment Promotion Agency, Korea’s exports to the South American country skyrocketed to $3.09 billion in 2007 from $506 million in 2003, an estimate measured just before the agreement came into effect.

Chile’s exports to Asia’s fourth-largest economy also expanded 3.7 times from $1.01 billion to $3.85 billion during the same period.

Two-way trade between the two nations has grown 4.5 times to $6.94 billion from $1.52 billion these past four years.

Korea recorded last year a deficit of $1.07 billion in trade with Chile, which has the largest copper reserves in the world, as Seoul imported copper worth $2.85 billion after the metal price soared.

Meanwhile the market share of Korean products in Chile grew every year from 2003 to 2007: 2.98 percent in 2003, 3.12 percent in 2004, 3.61 percent in 2005, 4.72 percent in 2006 and 7.23 percent in 2007.

Korea’s automobile sales, especially, exceeded those of Japan last year for the first time since 2001, taking the biggest share in the Chilean market with 29.3 percent. The successful performance came on the heels of the 6 percent tariff abolishment as part of the bilateral trade deal.

The report also showed that the FTA had a limited impact on Korean farmers, who were jittery about the deal’s impact before effectuation.

Last year, only 0.86 percent of Korea’s total agro-livestock imports, worth $92,325, came from Chile, including meat and wine.

abc@donga.com