• by IPS Correspondents (quito)
• Thursday, December 15, 1994
• Inter Press Service

QUITO, Dic 15 (IPS) - A gradual liberalisation of trade between Ecuador and Chile will begin on Jan. 1, culminating in a full free trade zone in 1998, Ecuadorian Industrial and Trade Mnister Jose Vicente Maldonado reported Thursday.

A bilateral agreement to be ratified Tuesday in Quito will stimulate investment and allow free circulation of assets, goods and services between the two countries.

Ecuadoran exports to Chile totalled over 100 million dollars between January and August of this year, 39.14 percent more than the same period of 1993. Ecuador's primary exports are petroleum, fruit, canned tuna-fish, cocoa butter, chocolate, aspirin and straw hats.

Chile's exports to Ecuador - glass, paper, iron, steel and copper products, wood, fruit, wine and chemicals - had reached 28.8 million dollars by July of this year, compared to 52.8 million in all of 1993.

According to Maldonado, free trade with Chile is part of an "irreversible" process of economic openness that "will allow (us) to achieve economic and social development...The ideology exists throughout the world, and is most firmly rooted in this hemisphere."

The presidents of Ecuador and Chile met during the recent Americas Summit in Miami, and gave "a clear mandate" for continued negotiations to their trade ministers. The talks are to conclude in mid 1995, Maldonado said.

He added that Ecuador is negotiatiating a similar agreement with Mexico, through which "we will be linked to the (North American) Free Trade Agreement (NAFTA), which also includes the United States and Canada."

Ecuador has also begun talks with the four Mercosur nations - Argentina, Brazil, Paraguay and Uruguay. The South American nation is already a member of the Andean Pact, with Bolivia, Colombia, Peru and Venezuela.

As a member of the Andean Pact, and "after concluding negotiations with Chile and Mercosur, in a very short time Ecuador will form part of a broad free trade zone in the American hemisphere," according to the minister.

© Inter Press Service (2014) — All Rights Reserved. Original source: Inter Press Service

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