Brazil-Chile free trade agreement gets the go-ahead from Chilean senate

Last Tuesday, August 11, the Chilean Senate approved a free trade agreement with Brazil that complements a pact made in the 1990s with the Mercosur trading bloc and incorporates issues related to telecommunications, electronic commerce, the environment, and SMEs.  “Today, more than ever, it is essential to strengthen our trade alliances to drive economic recovery,” said Chilean Foreign Minister Andrés Allamand after the agreement was approved.  He went on to say the treaty “will incorporate new cutting-edge terms, update existing ones and allow small and medium-sized Chilean companies to have equal access to the large Brazilian public procurement market.”

The agreement also provides for the elimination of ‘roaming’ between the two countries, Chile’s Ministry of Foreign Affairs said in a note.  Brazil is Chile’s largest trading partner in Latin America. In 2019, Chilean exports to the country totaled US$3.157 billion, equivalent to 30% of total shipments to Brazil.  The following graphs show the main commercial exchanges between Brazil and Chile, based on DataLiner data:

Main Goods Imported by Brazil from Chile / Jan to Jun 2020

Main Goods Exported by Brazil to Chile / Jan to Jun 2020

Chile, the world’s largest copper producer, has about thirty trade agreements with 65 markets worldwide. In 2019, it was the main supplier to Brazil of products such as copper cathodes, salmon and wine, while receiving meat, car chassis and iron or steel products from its neighbor.

Source: Reuters

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