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  HOME | Brazil (Click here for more)

Brazil, Chile Agree to Negotiate New Trade Pact

BRASILIA – Brazil and Chile have decided to negotiate a new pact that eliminates all trade barriers, Brazilian President Michel Temer said after meeting on Friday with Chilean counterpart Sebastian Piñera.

“Today we welcomed Piñera’s proposal to negotiate a new, more ambitious free trade agreement,” Temer said following the talks. “It’s not (just) about eliminating tariff barriers. We want to go beyond that and break down all regulatory barriers.”

He pointed out that Brazil and Chile have already scrapped tariffs on each other’s exports and credited the existing accord with having allowed bilateral trade to grow 20 percent last year to about $8.4 billion.

“That converts Brazil into Chile’s most important trading partner in the region and makes Chile our second-largest trading partner in the region,” Temer said.

Two agreements signed Friday in Brasilia – one to open government procurement in Chile and Brazil to firms from both countries, the other to liberalize financial services – will allow trade to grow even more, he said.

Temer highlighted that Brazil is the top destination for Chilean outward investment.

“Our businesspeople know each other very well and interact with total fluidity,” he added. “Our role as government is to provide the conditions to continue incentivizing such relationships.”

 

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