Brazil Chile Trade Agreement

Brazil and Chile Trade Agreement: What You Need to Know

Brazil and Chile, two of the largest economies in South America, have recently signed a trade agreement that aims to boost bilateral trade and investment between the two nations. The agreement, which was signed on November 21, 2018, in Santiago, Chile, covers a wide range of areas, including trade in goods and services, investment, technical cooperation, and dispute settlement.

Here are some important highlights of the Brazil and Chile trade agreement:

Trade in Goods

Under the agreement, Brazil and Chile will eliminate tariffs on 90% of their bilateral trade within ten years. This means that products such as beef, pork, soybeans, and fruit, which are some of Brazil`s main exports to Chile, will benefit from lower or zero tariffs. Similarly, Chilean exports of copper, wine, and salmon will enjoy greater market access to Brazil.

Trade in Services

The agreement also aims to facilitate trade in services, such as tourism, financial services, and telecommunications. By eliminating regulatory barriers and promoting transparency, Brazil and Chile expect to increase their cooperation in these areas.


The Brazil and Chile trade agreement includes provisions to protect and encourage investment between the two countries. This means that investors from Brazil and Chile will have greater security and predictability when investing in each other`s markets. Additionally, the agreement establishes a set of rules for the treatment of investors, the resolution of disputes, and the enforcement of investment-related decisions.

Technical Cooperation

Brazil and Chile have agreed to enhance their cooperation in areas such as science, technology, education, and culture. This includes initiatives to promote research and development, innovation, and the exchange of experts and knowledge.

Dispute Settlement

The agreement establishes a mechanism for the settlement of disputes between Brazil and Chile. This mechanism allows the parties to resolve disputes through consultations, mediation, and, ultimately, arbitration.

In conclusion, the Brazil and Chile trade agreement is a significant step towards closer economic ties and greater cooperation between these two important South American economies. By reducing trade barriers, promoting investment, and enhancing technical cooperation, Brazil and Chile expect to benefit from increased trade and investment flows, as well as greater economic growth and development.