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In short, efforts have to be made in order to reduce the tariffs for fruits, fishing products, wine, apple and other juices, and value-added forestry products. But special care should be given when it comes to the agricultural products, considering the fact that Korea has a unique cultural adherence to domestic agricultural industry. That is, Korea might, in the worst scenario, give up the negotiation if its counterpart pushes the tariff schedule to be too demanding.

The first thing for the Chamber of Commerce to do to prevent this is to advise the Chilean government to take initiative in suggesting a gradual tariff schedule to Korea. This is a basic measure to show the Korean public that Chile also has concerns about Korean domestic agriculture and is doing its best to mitigate the impact on these industries.

There are two things to mention with respect to this. The schedule should not be longer than 10 years, which will virtually nullify the positive effect of an FTA. The schedule must take into account the Uruguay Round agreement on agriculture; but the tariff schedule for two countries after 2004 should be much less than the multilaterally agreed plan.[1]

The Chamber also has to see to it that the negotiators be careful with the concessions that could be granted in sensitive Chilean sectors, where Korea has advantages in terms of its economy of scale. These sectors are: chemicals, rubber manufactures, shoes, textiles, electronic products, and some automotive related products.

[1] Korea, as a developing country at that time, agreed on average tariff cut in 24%, minimum tariff cut in 10%, total AMS cut in 13%, and value of subsidies cut in 24% by 2004. World Trade Organization, Table: Numerical targets for cutting subsidies and protection, Introduction to Agricultural Trade in the WTO.