Chile and Pakistan may sign a free trade agreement (FTA) within six months.
This would enable Pakistan to enhance exports of its textiles, leather, surgical and sports goods to the South American country.

Pakistan participated in a recent exhibition in Chile displaying textile, agriculture, sports, surgical instruments, marbles, gems and jewelry, carpets and furniture, and beauty products.

This is part of several initiatives taken by Pakistan to explore Latin American markets. Chile is one of the most free and liberal economies in South America.

Pakistan has a positive trade balance with Chile. Pakistan’s main exports to Chile are cotton yarn, yarn and thread of synthetic fibers, cotton fabrics (woven), synthetic fabrics, made-up articles of textile materials, carpets and rugs and apparel and clothing. Main imports are wood pulp, seeds, chemicals and machinery and electrical equipment, chemical elements and compounds.

Chile is interested in joint partnerships with Pakistan in the field of technology, exploration and diversification of its export mix, while Pakistan is looking to expand its export base in non-traditional markets.

The current trade flows are much below the trade potential between the two countries.

Both sides have agreed to the formation of a joint feasibility group to explore the possibility of a free market arrangement between the two countries.