Chile continues to be a strong trading partner and export market for U.S. companies, largely due to its open market policies, zero tariffs, rule of law, and transparent business practices. The country’s history of economic and political stability, transparency, and strong democratic institutions allows for political discourse, public protests, and peaceful elections.With a presidential transition on the horizon in March 2026, polls show that the Chilean public and private sectors are largely focused on rising levels of crime and addressing safety and security concerns. Sitting President Boric (2022 – present), who cannot constitutionally run in this election, was largely unsuccessful in passing many of his ambitious tax reforms and efforts to expand the role of government in the economy due to his inability to form a supporting Congressional coalition. Some of his proposed reforms and proposals have created some uncertainty in the business community, and pending legislation could bring changes to business rules and regulations, particularly in industries such as mining, energy, water, healthcare, and financial services. Meanwhile, it is expected that Chile will continue to focus on being a Latin American leader in mining, energy and the energy transition, artificial intelligence, data centers, and 5G.
According to the OECD, macroeconomic imbalances from the COVID-19 pandemic in Chile have largely resolved, and inflation in Chile has fallen though it remains at about Chile’s desired rate of three percent. Growth averages about two percent a year, down from the rapid four percent Chile experienced a decade ago. Despite economic uncertainty, the overall perception of the Chilean market is good given global conditions. U.S. products and services are well regarded in the Chilean market, though price competitiveness is a top factor for consideration. Working with a local partner is often a key market entry strategy.
Bilateral trade in goods and services between the United States and Chile has quintupled since the inception of the United States - Chile Free Trade Agreement (U.S.-Chile FTA) over twenty years ago. As of January 1, 2004, under the FTA, duties were reduced to zero on 90 percent of U.S. exports to Chile, and in January 2015, all remaining tariffs were phased out, except for some alcoholic and non-alcoholic products and some luxury goods which are subject to excise taxes. In 2024, bilateral trade in goods and services between the United States and Chile totaled nearly $47 billion, and the United States had a goods trade surplus of $1.7 billion. Overall, bilateral trade flows between the United States and Chile are well-balanced, with the United States exporting mineral fuels and machinery in exchange for Chile’s copper and agricultural products.
Chile continues to pursue market-oriented strategies, expand global commercial ties, and actively participate in international issues and hemispheric free trade. Chile is a member of the Pacific Alliance, the Community of Latin American and Caribbean States (CELAC, successor to the Rio Group), the Organization of American States, Industrial Property Latin American (Propieded Industrial Latinoaméria or ProSur), the World Trade Organization, the Asia Pacific Economic Cooperation (APEC), and an associate member of Mercosur. Chile became the 31st member of the Organization for Economic Cooperation and Development (OECD) in 2010, only the second Latin American country to join after Mexico.
Political Environment
VisitState Department’s website for background on Chile’s political and economic environment.