Korea's trade deficit with Chile expands in Q1

Korea’s trade deficit with Chile expands in Q1

Korea's trade deficit with Chile expanded to $327 million in the first quarter of 2004 as imports from the country surged following the free trade agreement. In January-March 2004 period, imports from Chile increased about 90% to $462 million while exports grew by just 4.3% and reached $134 million. Korea signed free trade agreement with South American country in February, lifting tariffs on more than 10'000 items over the next ten years. Chile is a pretty developed country in mining and therefore Korean manufacturers imported huge amount of material following the global rise in raw material prices earlier this year. Korea also imported $35 million worth of petrochemical products and $22 million worth of pulp for paper manufacturing. Exports to Chile saw a jump in textiles, chemical machinery, automobiles and mobile communication equipment.