Tokyo (VNA) - Japan and Chile are expected to sign a free trade agreement (FTA) on Mar. 27 on the occasion of Chilean Foreign Minister Alejandro Foxley's visit to Tokyo .

This will be the first Japanese FTA with a country in South America . Japan and Chile are seeking to bring the agreement into effect in September this year after gaining approval from their parliaments.

The two countries began negotiating the accord last February and reached a basic agreement on its framework in September 2006.

Once the FTA comes into effect, Chile will immediately scrap its 6 percent tariffs on Japanese vehicles, machines and electric appliances. Meanwhile, Japan will immediately do away with its tariff on 80 percent of Chilean items to be shipped to the country.

Tokyo will also lower a 17.6 percent tariff on bottled Chilean wine over a period of 12 years, while reducing tariffs on salmon and trout over 10 years, Japan ’s Kyodo News reported.-Enditem