Chilean President to Seek FTA Print E-mail
By Yomiuri Shimbun

Chilean President Ricardo Lagos, who is scheduled to visit Japan on Wednesday, said in an exclusive interview with The Yomiuri Shimbun on Friday that he wanted to sign a free trade agreement with the nation within five years of the start of negotiations.

The statement was the first time the Chilean President had put a time frame on free trade negotiations.

Lagos expressed his desire to establish a study panel with Tokyo to examine trade barriers in various fields, including agriculture. The President said he planned to present specific proposals during his visit in the country in this regard.

The Chilean President is scheduled to hold talks with Prime Minister Junichiro Koizumi, government officials and business leaders with the aim of promoting an FTA during his visit, which ends Saturday.

You will arrive in Japan on Wednesday. What do you expect from your trip?

I expect to increase our bilateral understanding and our bilateral agreements, not only in the diplomatic and political areas, but also in economics, trade and investment, and in the areas of education, scientific knowledge and research.

The proposed free trade agreement is a very important issue between the two countries and some in the private sector are pushing for a quick agreement.

What proposals will you present concerning an FTA during your trip, and how do you intend to accelerate it?

Chile is a very open country. The (average) tariff in Chile is 6 percent, the duties on our imports are 6 percent. Because of this, we have trade agreements with many countries: Mexico, Canada, most of the Americas, and now Europe, South Korea and the United States. Therefore, we're prepared to hold talks with our Japanese friends and see what the areas of common understanding are. If we can achieve some liberalization, our trade would be very good, but that decision lies with the Japanese authorities.

Are you going to talk about this with Prime Minister Junichiro Koizumi?

I think so. I'll talk about this and some other matters. I wouldn't like my visit to concentrate on this topic because there are some other topics that are also important. You have accomplished tremendous economic growth because of innovation, creativity and research. Our country is well known for our raw materials. The question is how we can combine both things to benefit each other.

How about the creation of an FTA study group?

I'd like to propose a study (group), but it depends on the answer of my friends in Japan. If the idea of having a study group emerges, I think it's a good idea, as such a discussion may be a useful way of finding ways to boost trade.

If FTA negotiations begin, how long will they take to be completed?

With Europe it took about three years, and with the United States it took eight years. But that's probably too long, don't you think? It will depend really on the negotiations, and how ambitious the trade agreement is going to be. I'd like to have an agreement within, let's say, the next three or five years.

How are you attempting to attract foreign investment to Chile?

I support the idea of Chile being a platform for investment, using our trade agreements to export goods made in Chile either to Europe or to other American countries. Chile has a good level of education among our young people. We have a very good infrastructure in the area of information technology, in terms of broadband, in terms of fiber optics, in terms of long-distance calls. And if you are located in Chile you have the advantage of being in a country that has very low country risk.

You have concluded an FTA with South Korea, and now you are going to attempt to do so with Japan. Do you have some kind of big vision linking the two continents in the future?

The Pacific Ocean is the most dynamic area of growth. Previously the center was Europe, the Mediterranean, and suddenly the center apparently is now in the Pacific. I'd like to have Chile as a bridge between countries in the Far East, like Japan, with other Latin American countries, with the Atlantic Latin American countries.

Concerning Venezuela's political crisis, Chile is a member of the six-nation "group of friends" of the country. What do you think is the best solution to solve the current crisis?

I think all of us agree that it's going to be necessary to have a democratic solution, which means a solution that will be approved by the Venezuelan people. Second, any solution has to be consistent with the Venezuelan Constitution.

Right now there is a leftist tendency in South American governments. How do you analyze this?

I want a society that is more egalitarian, I want a society with a better distribution of income, I want a society that will offer more and more opportunities to more and more people. Some may say that is left wing, but I don't think so. I think it's one thing to have sound economic policies, to have growth, but after you have growth then I think you need some government policies to facilitate social change in favor of those that have less. But you need both things.

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