Chile is looking forward to better relations with Malaysia, with free trade and air service agreements soon to be ratified in the South American nation and a trade delegation due here next month.

“The relationship between Chile and Malaysia has been an excellent one, but we need a new start after the free trade agreement (FTA), after nominating a new ambassador here (who will present credentials very soon) and an air service agreement, which we believe would be crucial to boosting our respective economies,” its Undersecretary of Foreign Affairs, Fernando Schmidt, told Business Times in an interview here yesterday.

Schmidt, on a two-day visit to Malaysia, said the FTA, Malaysia’s first with a South American country, is on track to being ratified by the Chilean Congress by the year-end and is expected to raise the level of trade between the two countries.

A separate air service agreement (ASA), signed in May 2009, was recently unanimously ratified in the Congress’ lower chamber and now needs to be heard in the upper chamber, or Senate, he said.

Once approved, the ASA would enable Malaysia Airlines (MAS) or any other Malaysian carrier to fly to Chile, and vice versa.

“The service agreement will be ratified very soon and it is up to the airlines to use this facility,” Schmidt said, adding that it would definitely help in the mobilisation of goods and people amid increasing trade and tourism interest between the two countries.

Currently, the only South American city that MAS flies to is Buenos Aires in Argentina, while AirAsia does not operate flights to that side of the world.

Yesterday, Schmidt was scheduled to meet Deputy Foreign Ministers A. Kohilan Pillay and Datuk Richard Riot as well as Foreign Ministry secretary-general Tan Sri Mohd Radzi Abdul Rahman.

His visit is a prelude to “Flavours of Chile”, a two-day iniatiative organised by the Chilean Export Promotion Bureau (ProChile) and the Embassy of Chile, aimed at enhancing trade, exploring mutual business opportunities and promoting high-quality food and beverage products from Chile among Malaysian businessmen and consumers. It will be held at the Westin Hotel here starting November 10 and activities include business seminars and networking initiatives as well as technical visits.

ProChile will be leading a trade delegation of over 15 Chilean businesses, who are keen on establishing or expanding business relations with companies here.

“Our objective is to expand exports to Malaysia, especially value-added food and beverage products, and also inform Malaysians about business and investment opportunities in Chile,” ProChile director Felix De Vicente, who is heading the delegation, said in a press statement.

Trade between the two countries grew by 15.2 per cent to RM771.3 million between January and July this year, compared with the same period last year.–BTimes