The Chilean Free Trade Agreement: An Overview
The Chilean Free Trade Agreement is a treaty that eliminates tariffs on goods and services traded between Chile and the United States. It was signed on June 6, 2003, and implemented on January 1, 2004.
The agreement was established to promote economic growth and investment opportunities for both countries. It is one of the most comprehensive trade agreements that the United States has with any country. The agreement has been successful in increasing trade and investment between the two nations.
Some of the key outcomes of the agreement include the elimination of tariffs on 87% of U.S. exports to Chile and 95% of Chile’s exports to the United States. The agreement also provides for the protection of intellectual property rights, the removal of barriers to trade in services, and the establishment of a framework for resolving disputes between the two countries.
One of the most significant benefits of the agreement has been the increase in U.S. exports to Chile. Since the implementation of the agreement, U.S. exports to Chile have tripled, reaching $17.6 billion in 2019. The agreement has also helped to increase foreign investment in both countries, with U.S. investment in Chile reaching over $31 billion in 2019.
In addition to promoting economic growth and investment, the agreement has also helped to strengthen the relationship between Chile and the United States. The two countries have collaborated on a range of issues, including environmental protection, science and technology, and security.
Despite the success of the agreement, there are some concerns about its impact on certain industries. Critics argue that the agreement has led to the loss of jobs in some sectors, particularly in the manufacturing industry. However, supporters of the agreement maintain that the overall benefits outweigh the costs.
Overall, the Chilean Free Trade Agreement has been a positive development for both countries. It has helped to increase trade and investment, promote economic growth, and strengthen the relationship between Chile and the United States. As the two countries continue to work together, the agreement is likely to remain an important part of their economic and political relationship.