Free trade agreement reinforces Brazil-Chile alliance

The signature of a free trade agreement between Brazil and Chile is another step towards strengthening the bilateral alliance, the presidents of the two countries said on Wednesday, adding that the new pact will lead to increases in investments, export, import and tourism related incentives.

In his speech, President Michel Temer said the diplomatic link between Brazil and Chile arises both from common interests and Brazil's Federal Constitution itself, which provides for integration among the nations of South America.

“In just six months, we were able to finalise and formalise this agreement. This is the result of a natural convergence that exists between our governments," said President Temer.

Even without sharing geographic boundaries, the two nations support each other and maintain a friendly relationship, said Chilean President Sebastián Piñera.

Better Business

Both leaders highlighted the speed with which the free trade agreement was finalised.

The document covers 24 non-tariff areas and will expand and strengthen free trade between Brazil and Chile. The 1996 agreement for zero tariffs was already in place, but now, with harmonised rules, there will be more incentives and greater predictability for trade and investment flows.

Retirement

After signing the agreement, Temer also announced a measure to benefit Chilean citizens who worked in Brazil and returned to their country of origin after retirement.

"I have determined to the Secretariat of the Federal Revenue of Brazil that, as a consequence of this trade agreement we celebrated, that we also waive the collection of these 25% from the Chilean retirees who worked in Brazil and came to Chile," he explained.