MEDIA RELEASE

22 July 1999 (Santiago, Chile)

FOR IMMEDIATE RELEASE

TRADE MINISTER SIGNS INVESTMENT AGREEMENT WITH CHILE

Trade Minister Lockwood Smith says that the Investment Promotion and Protection Agreement signed today with Chile's Minister of Foreign Affairs, Juan Gabriel Valdés, is an important step in encouraging greater flows of investment between New Zealand and Chile.

"One of the biggest obstacles to attracting inward investment is uncertainty regarding national treatment of investments," Dr Smith said.

"Chile is New Zealand's second largest outward investment destination - not just across the region, but in the whole world. New Zealand has an estimated US$4 billion invested across all sectors of Chile's economy, particularly in forestry and dairy processing.

"The Investment Promotion and Protection Agreement protects the interests of existing investors from either country by providing greater transparency in investment regimes.

"The Investment Promotion and Protection Agreement will also promote further investment between our two countries. By providing guidelines for the fair treatment of investments, clear rules regarding repatriation of profits and procedures for settlement of disputes, the Agreement sends a clear signal to potential investors in Chile that their investment in New Zealand will be welcomed.

"New Zealand has an excellent relationship with Chile, and concluding the Investment Promotion and Protection Agreement will contribute toward further development of our economic links," Dr Smith concluded.

Dr Smith departs Chile today, and arrives back in New Zealand on Saturday, 24 June 1999.

ENDS

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