TRADE AGREEMENTS OF CHILE

Chile is by far the nation most open to foreign trade in Latin America, and one of the most liberal economies in the world. This keynote has been actually a feature of Chile, interrumpted from 1930 to 1974, where the economy was closed to the world. After the Great Depression of the 1930's hit badly Chile, and the whole of Latin American countries, the governments of these nations, started an economic policy protecting local industries. So, high duties and very expensive barriers helped to develop new industries and more employment. But by the end of 1960's social problems, poverty, uneymployment and unstability were causing political struggles in many Latin American countries. Just producing for the domestic market wasn't enough to raise the standar of living of the common people.

Then after 44 years of a closed economy, Chile leaded the way in Latin America to return to the path of free trade, starting in 1974 reducing duties and taxes. In 2008, after 34 years of a road open to the world, the average duty to importation doesn't exceed 6% (six per cent). Some trade agreements have cero duty. There isn't any tax to exportations.

There are several trade agreements with the most important nations of the world economy.

Free Trade Agreements

United States
Canada
Mexico
Central America
Panama
China
Japan
South Korea
Norway
Island
Liechtenstein
Swiss

Association Agreements

The European Union
New Zealand
Singapore
Brunei

Complementation Agreements

Argentina
Peru
Bolivia
Ecuador
Colombia
Venezuela
Mercosur ( Brazil, Argentina, Uruguay, Paraguay)

Partial Scope Agreements

India ( Eventual Free Trade Agreement on the next years)