For New Zealand, Chile is in the third rank of export markets in Latin America, behind Mexico and Venezuela, but interestingly ahead of both Brazil and Argentina. Greentek - has designed an innovative electric water heater specifically for the Chilean market, responding to the demand for safe and environmentally friendly energy systems in Santiago. I believe these are examples of the new kind of commercial relationships we are going to see develop between Chile and New Zealand. New Zealand uses this term of a Closer Economic Partnership, instead of the more common term Free Trade Agreement, deliberately. We do so because such agreements go beyond traditional questions of tariffs on merchandise goods.
Market access is certainly a fundamental aspect of such an agreement.
But to respond to the dynamics of modern business, these agreements also embrace matters of investment, competition, intellectual property rights, government procurement and behind the border measures which can be impediments to trade, as well as providing for consultation and dispute settlement if and when difficulties arise. We are facing a new world of more open markets, more cross-border competition and cooperation, new technologies and new challenges. We have so much in common we should seize the opportunity before us to identify where we can each benefit from enhanced cooperation. When our leaders discussed this possibility in Brunei last October, President Lagos said that in any process towards a CEP the way forward would need to meet Chilean concerns about open trade in dairy products. The two leaders agreed to embark on a programme of bilateral cooperation in the dairy sector.