Describes trade agreements this country is a party to. Includes resources where U.S. companies can get information on how to take advantage of these agreements.
Chile continues to be a critical partner in promoting U.S. foreign policy goals throughout the region. In January 2010, Chile became the 31st member of the OECD and the first, and only, South American member at that time. Chile is also a member of the WTO and the Cairns Group. The U.S.-Chile Free Trade Agreement (FTA) entered into force on January 1, 2004 and was fully implemented on January 1, 2015.
Chile has negotiated 30 trade agreements, covering 70 markets, representing 88 percent of the world’s GDP. These agreements include 17 FTAs (United States; Canada; Mexico; Central America, which includes Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua; Korea; EFTA which includes Iceland, Liechtenstein, Norway, and Switzerland; China; Panama; Australia; Colombia; Turkey; Malaysia; Vietnam; Hong Kong; Thailand, Uruguay, and Argentina); 3 Economic Association Agreements (European Union, which includes its 27 member countries; Japan; and P-4, which includes New Zealand, Singapore, and Brunei Darussalam); 6 Economic Cooperation Agreements (Bolivia, Cuba, Ecuador, Venezuela, Peru, and Mercosur, which includes Argentina, Brazil, Paraguay, Uruguay, and Venezuela); one Partial Association Agreement (India), and a Commercial Protocol with the Pacific Alliance (Colombia, Perú and Mexico). The most recent trade agreement is an Economic Association Agreement with the United Kingdom that went into effect on January 1, 2021. Pending ratification by the Congress is the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CP-TPP) Australia, Brunei, Canada, Japan, Malaysia, Mexico, New Zealand, Perú, Singapore and Vietnam), to which Chile was a founding member and continues to seek with other Asia-Pacific members post-U.S. withdrawal. Chile’s participation in the Digital Economy Partnership Agreement, DEPA, is being discussed in Congress (presented in April 2021).
This network of trade agreements has significantly improved market access for Chilean products and exports. According to the Chilean Vice Ministry for International Economic Relations, Chile’s total exports in 2020 increased by 7% reaching a total of $73.4 billion. Over 94% of exports went to countries with which Chile has free trade agreements (93.4% during 2019). The main export markets were China, 40%; the United States, 13.7%; the European Union, 9.8%; Japan, 8.7%; and Mercosur, 5.7%. The Chilean Vice Ministry of International Economic Relations has complete information on Chile’s trade agreements and international trade.