Brazil-Chile agreement fosters trade, investment and tourism

As of Wednesday (21 November), Brazil and Chile will establish 24 non-tariff areas as part of a free trade agreement between the two countries. The signing ceremony will be led by presidents Michel Temer and Miguel Juan Sebastián Piñera in Chile.

The two nations already had an agreement, in place since 1996, that zeroed tariffs. Now rules will be harmonised, which will provide incentives and greater predictability for trade and investment flows. The text will be signed by Development and Foreign Affairs ministers Marcos Jorge and Aloysio Nunes on the Brazil side (respectively), and by chancellor Roberto Ampuero on the Chilean side.

“After more than 20 years since the signing of the 1996 agreement that eliminated tariff barriers in flows between Brazil and Chile, we noted the need to further decrease non-tariff barriers and adjust it to reflect new dimensions of international trade," said minister Jorge.

He also explained that the agreement is an innovation for Brazil in this type of negotiation. "It will be the first time Brazil is committing at a bilateral level on issues such as e-commerce, good regulatory practices, regional and global value chains, trade and gender, environment and labour issues," he said.

Next-generation rules

According to Brazil's Foreign Trade Secretary Abrão Neto, the new agreement creates "next-generation rules", with instruments that will help expand and encourage bilateral trade and investments. "This agreement will serve as a reference for several negotiations in which Brazil participates or will participate," he said.

The Itamaraty (the headquarters of the Brazilian Foreign Affairs Ministry) explained that the agreement will cover regulatory issues and stated that it is more ambitious in some areas than the standard established by the World Trade Organisation (WTO).