Nearly 98 percent of products traded between China and Chile will have zero tariffs attached when the new China-Chile free trade agreement is implemented in 2018, according to the Guangdong Entry-Exit Inspection and Quarantine Bureau, reports Chinanews.com.

A container wharf in Lianyungang, east China's Jiangsu Province [File Photo: VCG]

The China-Chile free trade agreement was the first of its kind between China and a Latin American country. Since the initial agreement came into effect in 2006, bilateral trading relations between the two countries have rapidly developed.

Signed in November 2017, the new agreement will see 24 competitive products from China including home appliances, textiles, and garments be immediately exempted from tariffs by Chile. This will affect a total of 4 million U.S. dollars of Chinese exports to Chile. This will not only enhance the competitiveness of Chinese products in Chile, but also enable Chinese companies to tap into Chilean markets and other emerging markets in South America.

The new agreement also has improved procedures regarding rules of origin, making it more convenient for companies from the two sides to enjoy preferential policies. Under the agreement, there will be a looser standard for rules of origin, and a more convenient certification process.