The aim of this chapter is to strengthen and facilitate trade by improving the implementation of the OTC agreement, removing unnecessary technical barriers to trade and strengthening bilateral cooperation. Chile was the first country to negotiate an agreement, independently of its ASEAN (Association of South Asian Nations) partners. The agreement focuses exclusively on trade in goods and its disciplines, so that for a second stage, the inclusion of trade in services and investment. The original rule of the agreement is relatively simple to comply with, most products simply have to come from their materials from Member States (Vietnam or Chile) which represent at least 40%, or modifications to their initial level 4 to obtain favourable customs treatment. The two countries have deepened their trade and economic relations,[4] which are now much deeper than the usual trade relations between two countries, as commended by Chile`s ambassador to Vietnam, Claudio de Negri. [5] This chapter applies to any health and plant health measures of any of the parties that may directly or indirectly affect trade between the contracting parties. The full text of the agreement can be found and downloaded here: under the agreement, Vietnam agrees to waive 87.8% of tariffs for 15 years (91.22% from 2007). In return, Chile lifts tariffs on goods, which account for 99.62% of Vietnam`s export value, starting in 2007, in ten years; 81.8% of the value exported and 83.54% of the right species would be immediately abandoned. The Government of the Republic of Chile and the Government of the Socialist Republic of Vietnam, known as the contracting parties, are inspired by their long-standing friendship and cooperation and by growing trade relations; broaden the framework of relations between them by continuing to liberalize trade; Recognising that strengthening its economic partnership will bring economic and social benefits, create new employment opportunities and improve the standard of living of its people; Recognising the differences in economic development between them and the need to facilitate the expansion of their exports, including by strengthening their domestic capacity, efficiency and competitiveness; based on their respective rights and obligations under the World Trade Organization (WTO); in view of the objectives of Asia-Pacific Economic Cooperation (APEC), reaffirm their shared commitment to facilitating trade between them; concerned with strengthening the framework for cooperation in the implementation of economic relations, in order to ensure its dynamism and to promote broader and deeper economic cooperation; Recognizing the need to maintain flexibility to protect the public interest, aware that economic development, social development and environmental protection are an integral part of sustainable development and that free trade agreements can play an important role in promoting sustainable development; and decided to promote bilateral trade by establishing clear and mutually beneficial trade rules and avoiding trade barriers, they agreed: with 14 chapters, 108 articles and 8 annexes, the Vietnam-Chile Free Trade Agreement is aimed only at trade in goods.

The free trade agreement contains, for example, provisions relating to the facilitation of market access, rules of origin, health and plant health measures, technical barriers, protection measures, etc. In 2010, Chilean exports to Vietnam amounted to $231 million, an increase of 114 per cent over the previous year, while imports were $107 million, a decrease of 15 per cent. During the same period, trade between the two countries increased by 40%, due to a marked increase in Chilean exports, mainly due to the value of copper cathodes to Chile (from $38 million in 2009 to $139 million in 2010).