Friday, August 17, 2018 | ePaper

China-Chile FTA boon to European business

  • Print
Xinhua, Santiago :
In geographical terms, Chile marks the farthest point from China, but the two countries have succeeded in forging a free trade agreement (FTA) that has brought them closer, and Europe in the bargain.
European firms eyeing China's market have opened plants in the South American country in hopes of taking advantage of Chile's trade deal with China.
Brueggen, a German cereal maker in business since 1868, recently invited Liu Rutao, economic and commercial counselor of the Chinese Embassy in Chile, to tour its Chilean plant.
According to Liu, the FTA between China and Chile is benefiting businesses not just in these two countries, but also in other parts of Latin America and even Europe.
Jose Manuel Ibanez, director of Brueggen America, told Xinhua: "China is very important to us. We developed this plant along with our partners in order to supply Chile, and also the rest of Latin America and the Asia-Pacific."
In 2015, Brueggen partnered with Latin American Foods in Chile, giving rise to Brueggen America, which aims to produce goods in Chile for China's market.
According to Ibanez, the idea is to replicate Chile's strong and long-running trade ties with China on homegrown products such as wine, copper and fruits.
Previously, Brueggen operated plants only in Germany, Poland and France, with the German facility producing cereals for the Chinese market.
The company, Ibanez said, has outlined a clear goal for its expansion in the Chinese market. "Our mission is to take granola to China." Highly popular in Germany, Europe and the United States, traditional granola which is made from a blend of oats, walnuts and honey that is then baked to a crunchy consistency, can be eaten alone or mixed with yogurt or milk and fresh fruits.
"We believe we can generate value in the supply chain for this market," said Ibanez, referring to China.
"We very much respect and value the way of doing things in China, and we feel that with this product we can generate not only value, but also a relationship that we would like to see last," said Ibanez. Chile offers companies with expansion plans certain clear advantages, he said, including its FTAs with countries around the globe, access to raw materials, and ports for shipping to "highly competitive markets like China's."
Chile is one of the world's most open markets, and has key international trade deals, such as its Partnership Agreement with the European Union and FTAs with the United States and China.
Former Chilean Ambassador to China Fernando Reyes Matta, who is currently director of the Center for Latin American Studies on China at Chile's Andres Bello University, said exports from Chile to China "have better competitive conditions than those arriving from Germany" thanks to existing Chile-China trade ties.
"This benefits those shipments, because even though they are coming from the southern tip of the world, the economic conditions for entry into China are totally different and much more favorable," said Reyes Matta.
Brueggen's plant in Chile has the capacity to process 650,000 kg of cereal, 220,000 tons of granola bars and a million granola-based products.
Reyes Matta noted the plant has "very advanced technology and, as a result, all the capacity to mass produce quality goods."
Chile plants some 576,000 hectares of cereals, 44 percent of which is wheat, 24 percent is corn and 22 percent is oats, according to the latest figures from the Ministry of Agriculture.
Today, distance is no longer an issue in trade, said the former diplomat, adding what matters is quality.
"There are no more borders in terms of the capacity of a product to go from one side of the globe to the other in optimum condition, due to refrigeration and transportation. The important thing is the quality that's on offer," said Reyes Matta.

More News For this Category

China online sales of home appliances rise in H1

Xinhua, Beijing :Online sales of home appliances in China registered fast growth in the first half of the year amid the country's e-commerce boom, a report showed.Total online sales

China to widen foreign access to A-shares

AFP, Shanghai :China's securities regulator said it will allow individual foreign investors working in the country to buy and sell yuan-dominated Chinese A-shares, the latest incremental step by Beijing

Syed Waseque Md. Ali, Managing Director of First Security Islami Bank Limited and Abda Hamid, CEO of Max Money SDN BHD (Malaysia), shaking hands after signing an agreement at SDN BHD head office in Kuala Lumpur recently. Under the deal, expatriates can send their remittance through the company to the Bank branches and agent banking locations favouring their beneficiaries in the form of cash pick up or account credit.

Syed Waseque Md. Ali, Managing Director of First Security Islami Bank Limited and Abda Hamid, CEO of Max Money SDN BHD (Malaysia), shaking hands after signing an agreement at SDN BHD head office in Kuala Lumpur recently. Under the deal, expatriates can send their remittance through the company to the Bank branches and agent banking locations favouring their beneficiaries in the form of cash pick up or account credit.

.

Turkey seeks to soothe markets over tensions with US

AFP, Istanbul :Turkey's finance minister Berat Albayrak will seek to soothe the markets about the lira's dramatic fall in the wake of escalating tensions with the United States via

UK annual inflation accelerates to 2.5% in July

AFP, London :Britain's inflation rate accelerated last month on higher transport costs, as workers' wages continued to lose purchase power, official data showed Wednesday.The Consumer Prices Index (CPI) 12-month

Md. Ataur Rahman Prodhan, Managing Director of Rupali Bank Limited, placing the floral wreaths at the portrait of Bangabandhu Sheikh Mujibur Rahman on the occasion of National Mourning Day at the city's Dhanmondhi Road No. 32 on Wednesday. Deputy Managing Director Mohammad Jahangir Alam, General Manager Kaisul Haque, Arun Kanti Paul, Saida Khatun, Jakia Sultana, Khan Iqbal Hossain and other employees of the bank were present at that time.

Md. Ataur Rahman Prodhan, Managing Director of Rupali Bank Limited, placing the floral wreaths at the portrait of Bangabandhu Sheikh Mujibur Rahman on the occasion of National Mourning Day at the city's Dhanmondhi Road No. 32 on Wednesday. Deputy Managing Director Mohammad Jahangir Alam, General Manager Kaisul Haque, Arun Kanti Paul, Saida Khatun, Jakia Sultana, Khan Iqbal Hossain and other employees of the bank were present at that time.

.

Nasrul Hamid, State Minister for Power, Energy and Mineral Resources, addressing the seminar on

Nasrul Hamid, State Minister for Power, Energy and Mineral Resources, addressing the seminar on "An overview of Nuclear Energy and Development status of Innovative Reactors" organized by Bangladesh Energy and Power Research Council (EPRC) at Biddut Bhaban in the city on Thursday. Mohammad Ali Julkarnine, ex Chairman of Bangladesh Atomic Energy Commission and Dr MA Rashid, retired Professor of BUET presented jointly the keynote paper. Dr. Tawfiq-e-Elahi Chowdhury, Energy Adviser to Prime Minister was also present.

.

Uber narrows loss

Uber narrows loss

Reuters :Uber Technologies Inc said on Wednesday it narrowed its quarterly losses from a year earlier, although the ride-hailing company is still a long way from proving it can

Walton glass door deep fridge getting huge response

Business Desk :Deep fridges as well as Tempered Glass Door frost fridges of the country's electronics giant 'Walton' have been turned into the customers' top choices in the following

Tawfiq for setting small power plants by using modular reactors

Tawfiq for setting small power plants by using modular reactors

Economic Reporter :Prime Minister's Power, Energy and Mineral Resources Adviser Dr Tawfiq-e-Elahi Chowdhury, Bir Bikram, on Thursday urged the Science and Technology Ministry to look into whether small power