Turkey, Chile sign freee trade agreement

State Minister for Foreign Trade Zafer Caglayan and Chilean Foreign Minister Mariano Fernandez yesterday signed a free trade agreement in Santiago to help boost trade ties between Turkey and Chile. Chilean President Michelle Bachelet Jeria, who was also present at the ceremony, said that Turkey has a significant potential in terms of geographic location as well as economic development. She said that its location between East and the West makes Turkey pivotal, adding that Turkish Nobel laureate author Orhan Pamuk has also put Turkey on the cultural map. Jeria said that her country admires the way Turkey has overcome obstacles to became one of the world's 15-largest economies, and that it also draws 26 million tourists annually. She added that under the new free trade agreement, to go into effect over the next six years, 98 percent of products traded between the countries would be duty-free. Jeria said that Chile isn't a big market but it has a commercial network and can serve as a platform for Turkey to reach other markets. Jeria added that Chile has big investments in port infrastructure, construction and security. She stressed that Chile is pleased to cooperate with Turkey in the midst of the economic crisis. For his part, Caglayan said that it is important for Turkey, a rising regional power, to sign a free trade agreement with Chile, an important country in Latin America. Caglayan added that the pact would boost mutual commerce and investments and bring opportunities for cooperation in third countries. He noted that Turkish Airlines (THY) is planning to start direct flights to Santiago soon. Saying that the free trade pact is Turkey's first on the American continent, Caglayan said that important developments would be seen in the energy, defense, construction and tourism sectors, and trade would double thanks to this agreement. Touting Turkey's remarkable performance in attracting foreign capital in recent years and Turkish banks' resistance to the global economic crisis, with the highest capital adequacy ratio in the world, Caglayan said the economic reforms of the last seven years made Turkey a very good place to invest. Touching on Turkey's recently introduced incentives for foreign investors, Caglayan said they offer great opportunities, and called on Chilean businesspeople to invest in Turkey. Also speaking at the ceremony, Fernandez said that the agreement was important for them, adding that Chile would be able to reach countries where 85 percent of global trade takes place. Fernandez said that they would send a trade delegation to Turkey by the end of this year, and open a commercial representation there early next year.