Last week, the Chilean Senate of Valparaiso finally approved a Free Trade Agreement with Argentina, known as Protocol 61, after almost a year of negotiating. The new deal aims to deepen economic integration between the two countries as well as strengthen ties with the Pacific Alliance, composed of Chile, Peru, Colombia and Mexico. It will take about 90 days to formalize the legal framework of the agreement.

The treaty is forecast to open doors to Asian markets for Argentina via Chilean ports for Argentina, as well as increase the volume of cargo traded between the two countries and omit mobile roaming charges. Of the total volume of agricultural, fishing and industrial manufacturing goods exported by Argentina, over three-quarters were sent to neighboring Chile. In 2017, Argentina earned US2.62bn in export revenues from Chile.

Supporting sources:

https://chileherald.com/final-free-trade-agreement-approved-by-chile-and-argentina/1597/

Final free trade agreement approved by Chile and Argentina

After over a year of negotiations, last week the Chilean Senate of Valparaiso finally approved a Free Trade Agreement between Chile and Argentina.

The agreement had been given the all-clear on Argentina’s side in December 2018, but this final approval means that over the next 90 days, Chilean president Sebastián Piñera and his Argentine counterpart Mauricio Macri will be charged with organising the legal framework of the agreement.

“This is a great step forward with elements of the latest innovation with regards to commercial and economic agreements, which Chile and Argentina are going to strengthen to the maximum,” Argentine ambassador to Chile, José Octavio Bordón, told Infobae.

The agreement, named Protocol 61, includes new rules for electronic commerce and public consumerism, reported El Diario Sur, as well as the incorporation of regulations on gender, SMEs, the environment and labour laws.

“Protocol 61 constitutes a new stage in the process of economic integration between Argentina and Chile, which started in 1995, and reached free trade in 2014,” stated the Argentina Chancellery when the agreement was approved on their side in December.

“With this new tool not only can we promote the deepening and broadening of exchange between Argentina and Chile, but we can also fulfil an important step in the objective to strengthen ties with the countries in the Pacific Alliance.”

The Pacific Alliance links Chile, Peru, Colombia and Mexico with the Mercosur trade bloc of Brazil, Paraguay, Uruguay and Argentina, however there is much uncertainty as to the future of Brazil’s role in Mercosur after the inauguration of Jair Bolsonaro as president.

It is expected that this new agreement will increase the amount of imports and exports between the two countries. Exportations of Argentine gas to Chile are set to increase, as well as opening a door from Argentina to Asia. This is an important step as Chile is one of the primary destinations for Argentine goods, with the Argentine government putting the total at US$2.62 billion in 2017, as well as sending the neighbouring country 75% of their agricultural, fishing and industrial manufacturing goods.

One of the agreements that will make travel between the countries much easier is the removal of mobile roaming costs. This means that mobile phone providers must charge the same tariffs in either Chile or Argentina regardless of the mobile company or the plan being used.

Specialist in international commerce Marcelo Elizondo spoke to Infobae about how this new agreement is a positive move towards Argentina becoming a larger player in the international market.

“As well as free trade, what we need to look for with Chile are less restrictions in administrative, management, operational and even logistical terms,” he explained. “Chile is a high-importing country which has free trade agreements with 80% of the world economy, whereas we [Argentina] have barely 10%.”

Putting Argentina more squarely into free trade agreements across the globe will strengthen Argentina’s economic clout and will help the country drag itself out of the economic crisis it has been experiencing. It is a further advantage that this agreement with Chile comes with further strengthening of ties with the neighbouring countries within the Pacific Alliance.

https://www.cancilleria.gob.ar/es/actualidad/noticias/el-congreso-de-la-nacion-aprobo-acuerdo-comercial-entre-argentina-y-chile

El Congreso de la Nación aprobó acuerdo comercial entre Argentina y Chile

La Cámara de Diputados sancionó el proyecto de ley mediante el cual se aprueba el Protocolo Adicional N°61 entre la Argentina y Chile que ya había obtenido media sanción de la Cámara de Senadores el pasado 10 de octubre. Este nuevo acuerdo comercial de última generación busca promover mayor intercambio comercial, crecimiento de las inversiones y desarrollo sostenible en ambos lados de la cordillera.

Su implementación beneficiará a los exportadores argentinos a partir de la agilización de los trámites del comercio exterior, la eliminación de barreras para productos agropecuarios y manufacturados y la reducción de costos de transacción (transparencia, simplificación de procesos, certificados digitales, beneficios para operadores confiables, etc.).

El acuerdo profundiza y mejora el marco normativo existente en materia de comercio de servicios, medidas sanitarias y fitosanitarias, normas técnicas, entre otros. Asimismo, establece reglas nuevas para comercio electrónico, compras públicas, facilitación del comercio e incorpora por primera vez para la Argentina disposiciones sobre género, PYMEs, medio ambiente y temas laborales.

El Protocolo N°61 constituye una nueva etapa del proceso de integración económica entre Argentina y Chile, que comenzó en 1995, y alcanzó el libre comercio en 2014. De esta forma complementa una serie de entendimientos vigentes, como el Acuerdo de Complementación Económica 35 MERCOSUR-Chile (ACE 35) y el Acuerdo para Evitar la Doble Tributación (en vigencia desde octubre de 2016).

El tratado refuerza el vínculo estratégico existente entre ambos países: Chile es el cuarto destino de las exportaciones argentinas (US$ 2.621 millones en 2017), el tercer destino para las ventas de las PYMEs al exterior, y un comprador importante de manufacturas industriales y agropecuarias nacionales (el 75% de los envíos al país trasandino). Es, a su vez, el quinto inversor extranjero en Argentina con un stock de IED de US$ 4.000 millones (2016), radicado principalmente en la industria manufacturera, comercio, transporte y minería.

Mediante este nuevo instrumento no sólo se promueve la profundización y ampliación del intercambio de la Argentina con Chile, sino que se cumple un paso importante en el objetivo de estrechar los vínculos con los países de la Alianza del Pacífico.

https://panampost.com/marcelo-duclos/2019/01/14/argentina-and-chile-agree-to-free-trade-agreement/

Argentina and Chile Agree to Free Trade Agreement

It is a great day for free trade and free markets in the Cono Sur.

In December of 2018, the Argentine Congress gave final approval to the deal. Last week the Chilean Parliament did the same. Now, both countries must deal with some regulatory formalities, which is expected to take approximately 90 days, for the commercial treaty to be put into effect. Argentina and Chile formalized a Free Trade Agreement that promises to spearhead something of even more importance at the regional level.

Argentine President Mauricio Macri has repeated on several occasions that Mercosur has not lived up to its expectations, and that he wants to see the world “as an opportunity and not as a threat.” For now, the achievements have been modest. Although the Pacific Alliance (Chile, Peru, Colombia, and Mexico), accepted Argentina as an “observer country” two years ago, the main objective set by the government of Macri’s Cambiemos Party is now on standby. This is the free trade agreement with the European Union that the president of France, Emannuel Macron, has currently put on the back burner, due to the powerful influence of the agricultural lobby of his country.

The new commercial ties between Argentina and Chile will soon bear fruit, with a considerable increase in the exchange of goods, as well as the elimination of bureaucracy and red tape in customs offices on both sides of the Cordillera.

There are other interesting features of the agreement as well. One of these is the end to roaming charges for Argentine cell phone users in Chile and vice-versa. Another is the reduction in barriers to electronic commerce between the two countries.

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