The Brazil-Chile free trade agreement and its expectations
The free trade agreement between Brazil and Chile, which focuses on boosting trade flows, both in goods, services and investments between the two countries, is on the agenda for the plenary of the Chamber of Deputies this week on May 24th. Brazilians and Chileans already have a trade agreement that has been in effect since 1996, which eliminates import tariffs for all products sold by the two countries. However, this new agreement, conceived in 2018, updates and brings new rules for commercial and investment relations. It has already been approved by the Chilean Congress and now needs the approval of the Brazilian Congress to materialize.
The current relationship between the two countries
Trade exchanges between Brazilians and Chileans are currently successful, with Chile being one of Brazil's main economic partners, second only to neighboring Argentina. According to the Brazilian government, in 2018, bilateral trade between the countries reached the mark of US$8.3 billion. Among the main products exported to Chile by Brazil are crude petroleum oils, meats, cars and tractors. On the other hand, we import mainly copper, salmon and wine products from Chileans.
Positive prospects for the new agreement
According to the National Confederation of Industry (CNI), with the adhesion to the new free trade agreement, Brazilian businessmen would have access to a market in Chile estimated at US$ 11 billion per year. In addition, according to the Ministry of Foreign Affairs of Brazil, the new agreement includes 17 topics of a non-tariff nature, such as: trade in services; e-commerce; telecommunications; sanitary and phytosanitary measures; technical barriers to trade; trade facilitation; intellectual property; and micro, small and medium-sized companies.
The importance of assistance from an international consultancy
Given the pandemic situation we are going through, this agreement could be essential for post-pandemic economic recovery. To take advantage of it, it is extremely important to plan seriously and assertively so as not to waste a good opportunity or money. In this case, an international consultancy, with market research and a well-defined strategy is essential.
By Guilherme Gomes on 05/26/2021
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