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Wine exports to benefit under Australia-Chile free trade agreement
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Australian wine exports to Chile are likely to benefit from a free trade agreement between the two countries expected to come into force on 1 January next year. Announcing the completion of negotiations for the agreement, the Minister for Trade, Simon Crean, described it as “the most comprehensive FTA Australia has ever negotiated”. Under the FTA — Australia’s fifth free trade pact and its first with a Latin American country — the tariffs covering 97 per cent of trade between the two countries will be eliminated when it comes into effect, including the 5% tariff Australia imposed on Chilean wine and the flat 6% tariff on all imports from Australia. The remaining merchandise in both directions will enter duty free by 2015. Two-way trade between Australia and Chile has grown from A$675 million in 2006 to A$856 million in 2007. Australia is the fourth-largest foreign investor in Chile, with around US$3 billion of direct investment.