Chile could supplant Argentina as Brazil’s main trading partner

Brazil and Chile They are on the verge of closing a commercial agreement very large, which would mean sales to sectors of the Trans-Andean state estimated at around US $ 11 million per year. The only thing that remains is the approval of the Brazilian Chamber of Deputies.

The agreement also includes commitments for the authorization of export establishments without prior individual inspection (pre-registration), which will contribute to the agro-industrial sales Brazilians in Chile. In addition, there is a market opening for the provision of services, the mutual recognition of qualifications and the facilitation of the temporary entry of persons for companies.

Although Brazil’s main trading partner in the region is largely Argentina, Chile remains in second place as the export destination of Mercosur’s main partner and is, in turn, the second largest importer. Indeed, last year trade between the two countries reached 6.7 billion US dollars, a considerable distance from the 16.7 billion US dollars they had achieved with Argentina. However, the volume of business promised by the approval of the treaty would significantly narrow the gap and even the Trans-Andean countries could rank as Brazil’s first trading partner in Latin America.

Brazil and Chile signed a free trade agreement

The approval was delayed (the bilateral treaty was signed in 2018) but the National Confederation of Industry (CNI, the Brazilian equivalent of the UIA) trusts its rapid approval which would open an important export channel. . According to the CNI, the approval of the treaty “will help stimulate trade flows, both of goods and services and of investment between the two countries”.

To ratify the good relations between the two countries, and in a clear message to lawmakers and to President Jair Bolsonaro himself, Brazilian industrialists launched the Brazil-Chile Business Council (CEBRACHILE), at an event attended by the foreign ministers of the two countries. countries.

Ernesto Araújo, The Brazilian Minister of Foreign Affairs stressed that “our governments share the values ​​of promoting democracy, defending human rights and respecting the principles of free trade and market economies”. Through, Andrés Allamand, his Chilean counterpartHe stressed that for entrepreneurs “there are opportunities that we can take advantage of on both sides”, while considering Brazil “a great trading partner and also a strategic ally in the region”.

Chile, the new gold mine for Brazilian beef

Although the agreement is bidirectional, the interest of Brazilian industrialists is not so much for what they could import from Chile but for the opening of an interesting export market, with a particular emphasis on the program of government procurement of the governed country. Piñera.

Brazil and Chile have a trade agreement in effect since 1996 that eliminates import tariffs for all products sold by the two countries, but the 2018 agreement, pending approval in Brasilia, updates and brings new rules for trade and investment relations.

“The implementation of the agreement is a priority for the business sector, which has worked with the Brazilian government to conclude it,” said CNI industrial development superintendent João Emilio Gonçalves.

RM CP