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Chile was a founding member of the trade pact, previously known as P4, when it came into force in 2006 along with Brunei, New Zealand and Singapore. Now the United States and other countries are keen to join the agreement which is seen as a vehicle for trade liberalization across the Asia-Pacific region.

The negotiations in Santiago focused on issues like health and safety regulations, intellectual property, rules of origin and market access commitments for agricultural products.

 “This agreement is the most ambitious process of economic and trade integration in the history of the Asia-Pacific region,” said Jorge Bunster, Director General of the Ministry of Foreign Affairs’ international trade office (DIRECON).

Although Chile already has Free Trade Agreements with all the countries involved in the talks, except for Vietnam with which it is currently in negotiations, the expansion of the agreement is in Chile’s best interests, said Bunster.

The nine countries in negotiations represent a market of 472 million people and combined GDP of US$16 billion in 2009. Expanding the agreement will speed up customs procedures, harmonize regulations to avoid unnecessary red tape, and become the first trade agreement to link countries on the Pacific’s eastern and western shores.

Crucially, it could also give Chile preferential access to fast-growing Asian markets in the future if more countries join, says Bunster.

“By increasing our access to more markets, we will increase our competitiveness,” said Bunster.

Tariffs are a key component of the negotiations but Chile’s bilateral accords will be respected, says Bunster. “Although many products will have zero tariffs under this agreement, in a period up to ten years, Chile’s agreements will not be altered in terms of our commitments.”

For the United States, which has had an FTA with Chile since 2003, the TPP is seen as a launch pad for the Obama administration’s intention to increase American exports to the Asia-Pacific and create good jobs at home.

Bunster said that the possible incorporation of the United States in the TPP is a sign of support for a larger Asia-Pacific trade bloc.

But it’s not the only multilateral trade agreement in the region. Japan, China and South Korea, which are not currently part of the negotiations, could form their own trade bloc in the framework of the Association of Southeast Asian Nations (ASEAN).

However, Bunster would not rule out the incorporation of Japan and other countries in the TPP agreement. “The DNA of this agreement is to grow and the incorporation of more countries would be a very positive sign,” he said.

Labor regulations are a key aspect of negotiations and a seminar with Chile’s Undersecretary for Labor Affairs, Bruno Baranda, was held in parallel to the trade round for delegates to learn more about Chile’s labor market.

Baranda highlighted the stability of the market and the government’s plan to create over one million jobs in the next three years after creating 485,000 in 2010.

“Independently of the number of jobs created, the government’s goal is to advance towards an improvement in the quality of the country’s labor standards,” said Baranda.

Baranda also noted areas for improvement such as incorporating more women and young people into the workforce, providing more training and increasing labor market flexibility.

The delegates also heard from representatives of the Chilean trade union confederation, Central Unitaria de Trabajadores (CUT), and the Confederation of Production and Trade (CPC).

A draft version of the TPP agreement could be ready at the next round of negotiations to be held in Singapore in March, said Bunster. This will be followed by three more rounds before the end of the year.

Julian Dowling is editor of bUSiness CHILEChile was a founding member of the trade pact, previously known as P4, when it came into force in 2006 along with Brunei, New Zealand and Singapore. Now the United States and other countries are keen to join the agreement which is seen as a vehicle for trade liberalization across the Asia-Pacific region.

The negotiations in Santiago focused on issues like health and safety regulations, intellectual property, rules of origin and market access commitments for agricultural products.

 “This agreement is the most ambitious process of economic and trade integration in the history of the Asia-Pacific region,” said Jorge Bunster, Director General of the Ministry of Foreign Affairs’ international trade office (DIRECON).

Although Chile already has Free Trade Agreements with all the countries involved in the talks, except for Vietnam with which it is currently in negotiations, the expansion of the agreement is in Chile’s best interests, said Bunster.

The nine countries in negotiations represent a market of 472 million people and combined GDP of US$16 billion in 2009. Expanding the agreement will speed up customs procedures, harmonize regulations to avoid unnecessary red tape, and become the first trade agreement to link countries on the Pacific’s eastern and western shores.

Crucially, it could also give Chile preferential access to fast-growing Asian markets in the future if more countries join, says Bunster.

“By increasing our access to more markets, we will increase our competitiveness,” said Bunster.

Tariffs are a key component of the negotiations but Chile’s bilateral accords will be respected, says Bunster. “Although many products will have zero tariffs under this agreement, in a period up to ten years, Chile’s agreements will not be altered in terms of our commitments.”

For the United States, which has had an FTA with Chile since 2003, the TPP is seen as a launch pad for the Obama administration’s intention to increase American exports to the Asia-Pacific and create good jobs at home.

Bunster said that the possible incorporation of the United States in the TPP is a sign of support for a larger Asia-Pacific trade bloc.

But it’s not the only multilateral trade agreement in the region. Japan, China and South Korea, which are not currently part of the negotiations, could form their own trade bloc in the framework of the Association of Southeast Asian Nations (ASEAN).

However, Bunster would not rule out the incorporation of Japan and other countries in the TPP agreement. “The DNA of this agreement is to grow and the incorporation of more countries would be a very positive sign,” he said.

Labor regulations are a key aspect of negotiations and a seminar with Chile’s Undersecretary for Labor Affairs, Bruno Baranda, was held in parallel to the trade round for delegates to learn more about Chile’s labor market.

Baranda highlighted the stability of the market and the government’s plan to create over one million jobs in the next three years after creating 485,000 in 2010.

“Independently of the number of jobs created, the government’s goal is to advance towards an improvement in the quality of the country’s labor standards,” said Baranda.

Baranda also noted areas for improvement such as incorporating more women and young people into the workforce, providing more training and increasing labor market flexibility.

The delegates also heard from representatives of the Chilean trade union confederation, Central Unitaria de Trabajadores (CUT), and the Confederation of Production and Trade (CPC).

A draft version of the TPP agreement could be ready at the next round of negotiations to be held in Singapore in March, said Bunster. This will be followed by three more rounds before the end of the year.

Julian Dowling is editor of bUSiness CHILE