Chile Eyes Deeper Trade with Malaysia by Leveraging MCFTA, CPTPP Frameworks -- ProChile
KUALA LUMPUR, Nov 2 (Bernama) -- Chile is stepping up efforts to strengthen its trade relations with Malaysia, building on existing frameworks under the Malaysia-Chile Free Trade Agreement (MCFTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), according to its trade agency, ProChile.
ProChile director general Ignacio Fernandez said there are vast opportunities to diversify Chile’s exports to Malaysia to support both nations’ small and medium-sized enterprises (SMEs) and promote products with higher added value.
"At the same time, ProChile wants to position Chile as a gateway for Malaysian companies to enter Latin America, using its strong network of trade agreements and logistics advantages such as free trade zones.
"This includes promoting business missions, building stronger partnerships, and exploring new opportunities in key sectors so that both countries can benefit from expanded market access through the MCFTA and CPTPP," he told Bernama in an exclusive interview recently.
Fernandez noted that Malaysia is currently the third-largest destination for Chilean exports among ASEAN countries, which collectively receive less than one per cent of its exports globally.
"However, nearly 40 per cent of all our exports go to Asia, so we believe we have opportunities to build a stronger relationship in ASEAN, particularly in Malaysia, since we have a free trade agreement," he added.
He emphasised that Chile's high-quality exports are able to cross the ocean and reach markets in Asia, but are mainly concentrated in China, Japan, South Korea and India.
"We are confident that as the people and companies in Southeast Asia and Malaysia get to know more about Chile, they will want to do business with us," he said.
Potential sectors for collaboration
According to Fernandez, the country sees great potential for sectors such as food exports, including agri-foods and seafood products, since Chile already exports nearly 40 per cent of its production to Asia, while less than one per cent goes to ASEAN countries.
He said the services and innovation sector also offers possibilities for enhanced collaboration, as Chile is providing more services and innovation for agriculture, as well as mining, aquaculture, and other sectors.
"We have international expertise and have developed a network of companies that offer highly specialised technology and services.
"We are already exporting these services to other countries in the Americas and Europe. Last year, we exported a record of over US$2.9 billion (US$1=RM4.19) worth of services worldwide, and we are confident that we can also offer them to Malaysian businesses," he said.
Fernandez said ASEAN countries, including Malaysia, are key to Chile's export diversification goals.
"Chile is a reliable business partner, and we produce not only minerals but also healthy, safe and sustainably produced food, as well as world-class services and technology.
"Chilean companies are open for business, and we at ProChile are very excited to support them. So please reach out to our office in Kuala Lumpur and get to know Chile," he noted.
-- BERNAMA
