The trade data reflect Chile`s open and independent trade policy. Exports to the world increased by 89% in the eight years 1993-2001 (see Chart 1) and imports increased by 56%. Although Chile is not a full partner of the Andean Community or a full partner of Mercosur, its export growth has been the fastest intra-regional, evidence of Chile`s trade strategy, which combines unilateral reductions in customs and non-tariff barriers with aggressive efforts towards bilateral agreements. From 1993 to 2001, Chilean exports to Latin America increased by 126%, compared with 100% for the United States, 43% for Japan, 70% for Asia and 71% for the European Union. Chile`s trade with Canada indicates another interesting trend. Although the value of the export dollar is very low, it has increased by about 380%, an issue that has not escaped many U.S. business representatives of a U.S.-Chile free trade agreement, who argued that the Chile-Canada Free Trade Agreement has put a competitive disadvantage on the face of a similar or better-quality agreement with the United States. There are also questions about the legal power to enforce immigration legislation. Some question whether the legislation`s Laws 106 and 107 would allow an international body to repeal decisions made by officials of the Ministry of Homeland Security or the Attorney General regarding the rejection of visa applicants from Chile and Singapore. The USTR replied that the panel set up by the free trade agreement would be binational and would deal only with cases brought by one of the parties to the agreement in which there was a model infringement. A summary of the agreement`s policy objectives, including “CONTRIBUTE on Hemispheric Integration and Achieving the Goals of the U.S.

Free Trade Area” Following the entry into force of the U.S.-Chile Free Trade Agreement in 2004, 80% of U.S. exports of consumer and industrial goods to Chile were exempt from tariffs. Tariffs on other products have almost been abolished. To be treated duty-free under free trade agreements, products must comply with applicable rules of origin. In addition to the benefits expected by U.S. businesses, investors and consumers, a free trade agreement with Chile was also seen as an opportunity for the United States to support economic and trade reforms in Latin America, of which Chile had become a regional model. Trade has been a major part of Chile`s history of economic growth and development and has been directly linked to higher productivity, a higher standard of living, greater diffusion of technology and a complete modernization of the country. That is why the United States should, it was said, support these achievements, as they form the basis for sustainable economic, social and political stability and sustainable progress in the region.

Trade agreements have also been presented as a role in development and have the added benefit of “including” reforms, giving economic and political conditions a sense of stability that promotes the attraction and maintenance of foreign trade and investment.

Menu