20 years after signing FTA, trade between Chile and the US has increased fivefold

According to ProChile, bilateral trade reached $35.4 billion in 2022, representing an annual average growth of 9.2% since 2003.

LOS ANGELES, Aug. 8, 2023 /PRNewswire/ -- Chile celebrates two milestones in its relationship with the United States in 2023: 200 years of diplomatic relations and 20 years of the Free Trade Agreement (FTA).

On June 6^th, 2003, Chile became the sixth country worldwide and the first from South America to have an FTA with the United States. It came into force on January 1^st, 2004, and since 2015, 100% of the bilateral trade enjoys free tariffs.

In the past two decades, trade between the countries has increased fivefold to $35.4 billion in 2022, with an annual average growth of 9.2% since 2003, according to ProChile, the government institution promoting goods and services abroad.

"As a small country, it was a historic milestone for us to sign this FTA. It not only gave us access to sell our products in the largest economy in the world, but it also deepened our strategy to develop an open, competitive, and export-oriented economy," said Ian Frederick, ProChile's Trade Commissioner in Los Angeles.

The United States is Chile's second-largest trade partner, and it's the biggest market for four export categories: food, non-traditional services, non-copper small and medium-sized export companies, and women-led export companies.

Chile was the leading supplier of 51 products for the US market last year, including fresh fruit such as grapes, cherries, oranges, and apples; salmon filet; mussels; lithium carbonate; and refined copper. 

According to Frederick, the government is making an effort for more non-traditional Chilean companies to enter the American market. "In the last few years, we have launched different soft-landing programs for service industries, including tech, education, and health. Chile is the most innovative country in Latin America, and our businesses have developed solutions that can be used in different markets, including the United States," he said.

ProChile will host multiple events in different US cities to celebrate the FTA's 20^th anniversary and 200 years of diplomatic relations, including a wine tasting in San Francisco, a cooking demo in New York, and a discussion panel with local authorities in Miami.

SOURCE ProChile