The development of Chilean commerce

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Versión en Español El desarrollo comercial chileno

Chile is an excellent example of how well-structured commercial and trade agreements have a positive economic impact on a country.

For example, in 2008, commercial trade totaled USD127 billion, of which USD70 billion corresponded to exportation.  More than 90% of this trade was the result of international agreements.

In contrast, in 2000, before Chile had entered into agreements with the EU and the US, exports totaled on USD18 billion.

The network of trade agreements has also contributed to market diversification, whereby the export base expands as Chile effectively competes with other countries in marketing their goods and services abroad.

Benefits also improve credit conditions.  Chile has the lowest country risk in Latin America.  Part of the management of this risk is a result of the association of the Chilean economy with others in the developed world.

Commercial agreement timeline

1993
Bolivia, Economic Complementary Agreement
Venezuela, Economic Complementary Agreement

1994
Colombia, Economic Complementary Agreement (in 2006, it was extended to create a free trade agreement)

1995
Ecuador, Economic Complementary Agreement

1996
Mercosur, Economic Complementary Agreement (in 2008, a Services Chapter was included)

1997
Canada, Free Trade Agreement

1998
Peru, Economic Complementary Agreement (a subsequent free trade agreement was negotiated as of March 1, 2009)

1999
Mexico, Free Trade Agreement
Central American free trade agreement with Costa Rica, Guatemala, El Salvador, Honduras and Nicaragua

2003
European Union, Economic Association Agreement

2004
United States, Free Trade Agreement
P-4 (i.e., Chile, New Zealand, Singapore and Brunei), Economical Association Agreement
Korea, Free Trade Agreement
EFTA (i.e., Island, Liechtenstein, Norway, and Switzerland), Free Trade Agreement

2006
China, Free Trade Agreement (the chapter on investments is still being negotiated)

2007
India, Partial Reach Agreement
Japan, Economical Association Agreement
Panama, Free Trade Agreement

2008
Cuba, Economical Complementary Agreement

2009
Australia, Free Trade Agreement

Commercial agreements in process
Guatemala (FTA Bilateral Protocol), signed in 1999, in process of ratification by Congress

Negotiation rounds
Malaysia, Free Trade Agreement, negotiations started on June 2007
Vietnam, Free Trade Agreement, initiating negotiations
Turkey, Free Trade Agreement, negotiations started in 2008

This post is also available in Spanish