Since joining Asia-Pacific Economic Cooperation (APEC) in 1994, Chile and the forum have developed a strategically important and mutually beneficial relationship. The Pacific Rim is an area of intense economic growth, trade and technological development, as well as being the largest market, in regional terms, for Chilean exports. It should be noted that, in 1994, Chile’s sales to APEC economies totaled US$ 6.4 billion, representing 54.6% of total exports, but by 2002, this had increased to US$ 10.1 billion, equivalent to 57% of total exports.
It is, therefore, of great interest to Chile to strengthen its ties with the other 20 APEC economies and, with them, to pursue the forum’s key objectives: the liberalization and facilitation of trade and investment, and the promotion of technical cooperation.
The APEC forum, which was founded in 1989, brings together a region of increasing importance. Today, after leaving behind the “Asian crisis”, it is the region of the world that is experiencing the greatest development. P. R. China has already joined the World Trade Organization (WTO), and the vitality of its economy was demonstrated in the first quarter of 2003, when it expanded by 9%. Equally promising growth prospects are to be seen in R. of Korea, the Philippines and Russia, to mention just a few APEC economies.
The strategic importance of APEC is also reflected in the Free Trade Agreement (FTA), signed by Chile and Korea in February 2003. This was a clear result of the closer relations that APEC has helped to forge. It is the first FTA to bridge the Pacific Ocean, linking -through Chile and R. of Korea, both of whom are active APEC members– the Americas and the Asia-Pacific region. The FTA that Chile signed with the United States in June 2003 is also the outcome of contacts initiated in APEC Leaders’ Meetings. This meeting is the culminating event of the activities, developed by each host economy over more than a year, including the meetings and ministerial summits that seek to advance towards APEC’s main objectives.
The open regionalism that Chile has espoused is reinforced by our participation in APEC, which, in turn, strengthens multilateral efforts to reactivate world trade. APEC brings together economies that generate 47% of the world’s trade and account for 60% of its population. This underlines APEC’s importance in multilateral trade negotiations, and in reaching agreement on the criteria and policies required by globalization.
APEC 2004 Chile: Chile aspires to be a bridge for trade and investment between the Asia-Pacif region and South America. To this end, we are preparing to take full advantage of the historic opportunity of presiding the APEC forum as from December 2003, a presidency that will include the first APEC Leaders' Meeting to be held en Chile's Region V, by mid of December 2003.
The announcement of tripartite negotiations towards an FTA between Chile, Singapore and New Zealand, made during the last APEC Leaders’ Meeting in Los Cabos, Mexico, October, 2002, is proof of Chile’s political will to strengthen its links with the Asia-Pacific community. Singapore and New Zealand are widely recognized for their commitment to openness and transparency, and for the quality of their public policies. These three-way talks are one of the most innovative initiatives in international economic diplomacy, since they will create a broadly based model of liberalization that not only includes the elimination of tariff barriers, but also favors the formation of a pro-free trade block within APEC.
The special mechanism for bilateral economic consultations, set up in February 2003 by Chile and Japan, with the aim of strengthening trade relations between the two economies, also points in the same direction, and is due to hold its first meeting in Tokyo in November 2003. Similarly, Chile and P.R. China maintain active diplomatic and trade relations, of which Chile’s support for P.R. China’s entry into the WTO and their joint mechanism for economic and commercial consultations -which has already held 19 meetings- are just two manifestations.
Since taking office in March 2000, President Ricardo Lagos has made official visits to P.R. China, Russia, Japan and R. of Korea, while Minister of Foreign Relations Soledad Alvear has traveled to two latter. These visits are an indication of the pro-active approach that Chile takes to its international insertion into APEC, and of its determination to continue building the foundations of this relationship, even in times of slower world growth. This strategy will, we believe, yield important benefits in the short term, promoting investment, exports and economic growth, favoring the creation of more and better jobs, contributing to improve the quality of life of Chile's citizens, and strengthening bilateral ties between Chile and other APEC economies.