In an agreement signed 25 June 1996, Chile was allowed associate membership in the South American trade area with the Mercosur states, namely, Argentina, Brazil, Paraguay and Uruguay. The agreement, which went into effect 1 October 1996, reduces tariffs on imports by an average of 6%, leading to zero-rate tariff on most goods within eight years.
An agreement to liberalize trade between Chile and the European Union was signed on 21 June 1996, but is not yet effective. The agreement has been approved by the Chilean parliament, but still requires approval by each of the member states of the European Union.
A free trade zone agreement has been signed between Chile and Canada, but is not yet effective. The agreement is due to be sent to Congress for approval during March 1997.
Chile has also recently entered into negotiations to establish free trade zones with some of the Central American countries including Costa Rica, Honduras, Guatemala, El Salvador and Nicaragua. The agreements signed with Honduras and Costa Rica have been approved by the Chilean parliament.
This article was correct as of 1 April 1997.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
For further information contact Anthony Cook, Deloitte & Touche, Santiago, Chile on Tel: +56 2 638 4186, Fax: +56 2 639 1522