The Chile-Turkey Free Trade Agreement (FTA) became effective Tuesday, with 98 percent of bilateral trade now tax-free and the rest to follow suit within six years.

It is Chile's 21st valid trade agreement described as a win-win deal, under which the South American country hopes to gain greater access to the vast markets of oil-rich Middle East and Central Asia. Meanwhile, Turkey regards the agreement, its first FTA with a Western hemisphere country, as a way to explore the opportunities in the other side of the world.

Under the pact signed on July 14, 2009, 92.6 percent of Chile's exports to Turkey, or 26 percent of total Chilean exports, will get tax benefits.