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Brazil and Chile: diplomatic alliance unites politics and economy

published: Nov 21, 2018 01:10 PM, last modified: Nov 24, 2018 10:08 AM
Brazilian government signs new free trade agreement with Chileans during official visit
Brazil and Chile: diplomatic alliance unites politics and economy

Trade relations between Brazil and Chile should grow with free trade agreement - Photo: Archive/APPA - Credit: APPA / Disclosure

Brazil and Chile will expand trade and diplomatic relations on Wednesday (21 November). Accompanied by members of his cabinet, President Michel Temer will attend the signing of diplomatic agreements in Santiago with Chilean authorities.

The new treaty will create tariff exemptions, harmonise rules for exports and imports, and facilitate business between companies from the two countries. The second largest buyer of Brazilian products in South America, Chile saw its imports of Brazilian products rise 20% between 2017 and 2018.

Brazil and Chile: diplomatic alliance unites politics and economyAnnual two-way trade between the two countries amounts to approximately US$ 8 billion. Last year alone, Brazil sold US$ 5 billion worth of goods to its neighbours, chiefly driven by imports of crude oil (US$ 1.51 billion), beef (US$ 279.4 million) and automobiles (US$ 262.2 million).

On the other direction, Brazil's top imports from Chile were copper cathodes (US$ 957.6 million), Pacific salmon (US$ 508.2 million) and copper ore (US$ 499 million). But relations and cooperation between the two countries go beyond trade.

Strategy

In addition to commercial interests, the Brazil-Chile alliance also extends to military cooperation and diplomatic relations. For example, Chile has openly supported Brazil's bid to join the Organisation for Economic Cooperation and Development (OECD).

“Brazil and Chile also cooperate in the military area. Chile is still an important gateway for Brazil's access to research in the Antarctic base," said Brazil's ambassador to Chile, Carlos Sérgio Sobral Duarte.

Tourism

According to travel agent Felipe Ortiz de Freitas, Brazilians usually visit the country in winter to see some snow and enjoy winter activities. The historical part of Chile is also much sought after by tourists from Brazil.

Brazil also offers a number of attractions to Chileans. Physical education teacher Javiera Osorio plans to take advantage of the country's tourist destinations next year, her third time on Brazilian soil. "I went to Rio [Janeiro] and I really enjoyed it. The beaches are wonderful. Everything delighted me," she said.