The Federal Government ratified the Brazil-Chile Free Trade Agreement signed in 2018. It covers trade and investment facilitation measures, as well as government procurement and other topics, seeking to promote bilateral economic cooperation.
The Federal Government, through Decree n.º 10.949/2022, ratified the Brazil-Chile Free Trade Agreement (FTA) signed in 2018, as the 64th Additional Protocol to the Economic Complementation Agreement n.º 35 (MERCOSUR-Chile). The scope of the FTA comprises 24 chapters, including trade facilitation (chapter 2), good regulatory practices (chapter 3), investment facilitation and cooperation (chapter 8), government procurement (chapter 12), and trade and environment (chapter 17).
The FTA is designed to promote the bilateral flow of goods and services, and bilateral investments, through the adoption of cooperation mechanisms, removal of barriers, and promotion of regulatory convergence. Brazilian companies may take part in Chilean public procurement processes, while their investments in the country are conferred national treatment and Most-Favored-Nation treatment conditions.
According to the Central Bank of Brazil (BCB), the stock of Chilean foreign direct investments (FDI) in Brazil totaled nearly US$ 7 billion in 2020, or around 1% of total FDI in Brazil, ranking Chile 22nd in Brazilian suppliers of investments, only behind Mexico in Latin America. On the other hand, Brazilian investments in Chile totaled nearly US$ 5 billion in 2020, ranking third in Latin American destinations (behind Panama and Uruguay), and 13th overall.
Concerning the bilateral trade in goods, according to the Ministry of Economy, Chile was the 6th most important trade partner of Brazil in 2021, only behind China, the European Union, the United States, Argentina, and India. Brazilian exports to Chile added up to US$ 7 billion, while imports from Chile added up to US$ 4.4 billion.
The scope of the agreement also comprises sanitary and phytosanitary measures, technical barriers to trade, trade in services, temporary entry of businesspeople, electronic commerce, regional and global value chains, trade and gender, and trade and environment.
