Brazil-Chile trade keeps breaking records and may grow even more with new trade agreement

Brazil-Chile trade set new records in 2021, with significant increases in trade flow (export+import), Brazilian exports, and surplus. Bilateral trade flow totaled US$ 11.421 billion, the highest in the series’ history, driven by US$ 6.999 billion in Brazilian exports, with a US$ 2.547 billion balance in favor of Brazil.

Chile, in 2021, was the fifth leading destination for Brazilian exports and the twelfth-largest supplier to Brazil. Moreover, forecasts indicate that the two parties will have an even stronger relationship in 2022, as the free trade agreement designed at the end of President Michel Temer’s administration and approved by the National Congress in September entered into force on January 28.

The expanded Brazil-Chile agreement, which covers services, investments, government procurement, geographical indications, customs simplification, and sanitary and phytosanitary barriers, is considered the most modern ever signed by the country with one of its South American neighbors.

According to the CNI, one of the main benefits of the new agreement might be access to a Chilean market worth US$ 11 billion in government purchases per year. The Confederation assumes that Brazilian industries will have special access to Chilean government tenders in port services, information technology, and civil construction, among other areas.

Another industry that is likely to benefit from the agreement is agribusiness. According to the Ministry of Agriculture, Livestock, and Supply (Mapa), the agreement establishes “pre-listing,” a practice that eliminates the need for individual inspections at slaughterhouses, as well as creates the possibility of conducting joint authorization of new exporting meat plants based on the criteria adopted by Brazilian health authorities.

In 2021, the business flow between Brazil and Chile had the best since 1997. According to data from the Foreign Trade Secretariat (Secex) of the Ministry of Economy, Brazilian sales to Chile registered an expressive increase of 81.8%, compared to 2020, and totaled US$ 6.999 billion.

Chilean exports also showed a relevant increase of 52.7% to US$ 4.422 billion. Chile was the final destination for 2.49% of Brazil’s total exports and corresponded for 2.02% of Brazilian imports in the period.

Source: Comex do Brasil

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