The Chilean Senate approved on Tuesday (04.09.2019) a bilateral partnership agreement between Chile and the United Kingdom that will protect Chilean exporters in the event that Brexit finally materializes, the Ministry of Foreign Affairs reported.
This instrument was signed between both countries in January of this year in Santiago de Chile and after being approved last June by the Chamber of Deputies, it was ready to enter into force after the approval of the Senate obtained today..
The treaty transfers the conditions of the existing Association Agreement (AA) between Chile and the European Union (EU) to a bilateral one with the United Kingdom, which would only come into force if there is Brexit.
In this way, if the UK's exit from the EU is effective, Chilean exporters will continue to enjoy the benefits they have had since 2003 through the AA to be able to access the British market preferentially, explained Chile's Foreign Minister, Teodoro Ribera.
The minister added that The agreement with the United Kingdom means "protecting bilateral trade, small and medium-sized businesses, exporting companies and, above all, safeguarding jobs."
He also highlighted that "Chile became the first country in the world to sign such an agreement with the United Kingdom," when both nations signed it last January.
As regards trade in goods, the agreement maintains the same tariff preferences for access of Chilean products to the British market.
Meanwhile, quotas remain the same for beef, poultry, pork, sheep and goat meat.
Thus, it contains an evolutionary clause on agricultural goods, which establishes that within a period of two years, and every two years thereafter, the parties will review the situation of tariff liberalization for agricultural products, with the possibility of improving the conditions and taking full advantage of their wide potential.
Trade between Chile and the United Kingdom in 2018 reached 1.360 billion dollars, which represents 19% more than the previous year.
Chile's exports to the United Kingdom grew by 17% (685 million dollars) in 2018 compared to the previous year, composed mainly of fruit, bottled wine and processed foods (excluding salmon).
Meanwhile, imports increased by 21% during the same period (675 million dollars) compared to 2017.
Aduana News is the first Argentine customs newspaper to launch its digital version. With 20 years of experience, its publications and initiatives aim to provide the most relevant knowledge on customs issues in order to contribute to safe trade in the region.
