Free Trade Agreement Argentina Chile

Growing trade with neighbouring Chile will help pull Argentina out of its economic crisis and consolidate its strong export market. Chile also has a strong and open trade presence in the world, from which Argentina can learn. Previous protectionist measures have prevented the country from participating in international trade, like other Latin American economies. Chile has signed more or less comprehensive free trade agreements with the United States, Canada, the European Union, EFTA, South Korea, Japan, Central America and Mexico. In June 2005, a four-year agreement was concluded with Brunei`s Pacific neighbours New Zealand and Singapore (P-4). In June 2006, it signed a free trade agreement with Panama. In February 2010, it signed a contract with Guatemala. Chile sends only 1.3 percent of exports to Argentina worth about $690 million. Chile sends a quarter of all exports to China and the value of these exports increased from $10.5 billion in 2017 to $19.2 billion in 2017. This impressive trade relationship was facilitated by a free trade agreement signed in 2005 between China and Chile. Chile was the first Latin American country to sign a free trade agreement with China and has reaped the benefits since then. Chile has also concluded bilateral “supplementary economic agreements” with Bolivia, Peru, Venezuela, Argentina, Ecuador, Colombia and Mercosur, as well as a partial agreement with Cuba. In comparison, Chile is Argentina`s third largest export destination.

Plant products and foodstuffs account for more than a third of Argentina`s exports to Chile. Agriculture is the key to Argentina`s export market. Argentinian wine and beef are famous all over the world. Argentine gas exports to Chile will increase with the new trade agreement. Given the lucrative free trade agreement between Chile and China, these exports will then be able to reach Asian markets. This is an exciting opportunity for Argentina to establish its trade relations with Asia and promote its exports. The first round of negotiations was held in Buenos Aires, Argentina, from 8 to 9 March 2017. The second round of negotiations was held in Santiago de Chile from 8 to 10 May 2017. The third round of free trade negotiations took place from 21 to 23 June 2017.

Negotiations continued in Santiago, Chile, where the fourth round of negotiations was held from 16 to 18 August 2017. At the end of this round, the two countries reached agreement on nine chapters of the future agreement. Argentine President Mauricio Macri has repeatedly said that Mercosur has not met his expectations and wants to see the world “as an opportunity and not as a threat.” For the moment, the successes have been modest. .