Analyzing Chile Trade Agreements … Essay
Pages: 7 (2230 words) | Style: n/a | Sources: 7
Chile Trade Agreements
Trade agreements can be delineated as any contractual agreement that is conjured up between states, regarding their trade relationships and associations. In particular, a great deal of the agreements signed by Chile have been free trade agreements (FTA). These sorts of arrangements encompass the collaboration and working together of at least two nations to decrease trade barriers and obstacles, such as tariffs and import quotas and also to increase the level and extent of trading of goods and services between such respective nations. It is imperative to note that trade agreements can be bilateral, that is between two states, or can be multilateral, that is between more than two states. For a great deal of the nations, international trade is more often than not controlled by numerous sorts of unilateral barriers, which include tariffs, non-tariffs and also consummate prohibitions. By having trade agreements, it becomes one of the ways in which nations decrease these sorts of barriers, and as a result, opening all entities to the profits and benefits of increased trade (Whalley 64). In recent periods as well as in the past, Chile has signed a number of trade agreements with different nations. This research paper seeks to evaluate what these trade agreements entail and what additional benefits these agreements could offer international companies producing in Chile.
Australia -- Chile Trade Agreement
The Free Trade Agreement between Chile and Australia came into effect on March 2009. Chile was the first nation in Latin America to have such an agreement with Australia. In particular, this trade agreement encompasses not only good, but also services and investment. From the outset of last year 2015, all of the tariffs that had been prevailing were all eradicated and removed, apart from the tariff on sugar. This is as a result of the price-band system effected by Chile and therefore the nation collects a tariff of 6% for all exports made from Australia. There are a number of benefits that this agreement offers international companies producing in Chile. For starters, there is nationwide treatment for Australian goods, services and traders or companies in the Chilean market for any procurement made beyond the approved value brinks. Secondly, approximately 92% of all tariff lines have been eradicated. This is largely beneficial to international companies for the reason that this encompasses 97% of good trade upon entry into force. In addition, the trade agreement between the two nations hems in high standards of internet protocol (IP) protection for aspects such as trademarks, copyrights, patents as well as geographical indications for both parties. Lastly, the trade agreement hems in the substantial services and investment regimes for both parties. From the time the agreement came into force, there has been a substantial rise in Australian companies coming into operation in Chile, bringing the number to more than 120 companies. More so, several of these companies have since then went on to expand their business operations extensively into Chile and into more Latin American nations (Department of Foreign Affairs and Trade).
United States -- Chile Free Trade Agreement
The Free Trade Agreement (FTA) between Chile and the United States initially came into effect in the year 2004. One of the main benefits is that upon effect, 80% of the United States consumer and industrial goods exports to Chile instantaneously came to be duty free. In addition, tariffs on the outstanding products have been eradicated and eliminated. One of the benefits for international companies is that at the start of 2015, 100% of products became duty free. The trade agreement also offers advantageous right of entry for U.S. service traders and assurances of protection to U.S. investors and U.S. exclusive rights, trademarks and copyrights enumerated in Chile. Furthermore, Chile has dug out important government procurements to U.S. dealers. Chile's open economy and robust self-governing institutions cause the nation to be one of the most unwavering and stable nations to do business, especially in the Latin America expanse. In addition, the trade agreement offers a charter, context and structure that make Chile to be an all the better area for international companies to undertake business. In addition, the trade agreement between the two nations hems in high standards of internet protocol (IP) protection for aspects such as trademarks, copyrights, patents as well as geographical indications for both parties. Statistics indicate that since its inception, the trade agreement has been very effective for both nations. Statistics indicate that American exports to Chile have increased by 513% since coming into effect to more than $16 billion. For instance, in 2014, owing to the trade agreement, the economy of Chile grew by 1.8% (Export.gov).
Canada -- Chile Free Trade Agreement
The Trade Agreement between Chile and Canada was contracted in 1996, but came into full effect the following year in July. The Canada-Chile Free Trade Agreement (CCFTA) is a wide-ranging arrangement that encompasses trade in goods and services, in addition to the bilateral investment association. In addition, the trade agreement between the two nations hems in high standards of internet protocol (IP) protection for aspects such as trademarks, copyrights, patents as well as geographical indications for both parties. This particular agreement was Canada's opening Free Trade Agreement (FTA) with a nation from South America, whereas for Chile it was the initial complete FTA finished with any nation. From the time the trade agreement came into effect, both of these nations have experienced several benefits. Bilateral merchandise trade more than tripled, coming close to the $3 billion mark in 2014. In addition, statistics indicate that international Canadian companies have attained roughly $250 billion annually in terms of economic welfare gains (Global Affairs Canada).
In the first ten years since its inception, the level of trade between the two countries increased by more than 300%. By the year 2010, investments by Canadian international companies in Chile surpassed $13 billion. This far, Canada has been the biggest source of new investment in the nation. One of the major benefits that international companies also enjoy is that since 2013, the prime minister of Canada and the president of Chile made the proclamation that as a result of the extension of the Chile-Canada Free Trade Agreement (CCFTA), Canadian international financial companies will enjoy privileged access to the Chilean market. As a result, these companies are now able to compete with other competitors on an equal and level playing field (Global Affairs Canada).
China -- Chile Trade Agreement
The Free Trade Agreement between China and Chile was signed in November 2005, but was implemented and came into effect the following year in October. This agreement entailed the aspect that Chile and China were to spread out zero duty treatment stage by stage to encompass 97% of products within the period of a decade up until the present year 2016. The FTA also entails the matter that the two nations will also additionally reinforce and fortify exchange and team work in different areas, for instance, economy, small and medium entities (SMEs), culture, education, science and technology, and ecological safety. In 2008, the president of China and the president of Chile countersigned the formal acceptance of The Supplementary Agreement on Trade in Services of the Free Trade Agreement between the Government of the People's Republic of China and the Government of the Republic of Chile. In addition, in the present periods, these two nations are having talks and advancing negotiations regarding investment (Wise).
The goals and purposes of this agreement are expounded more precisely through its principles and instructions, together with national handling, most-favored-nation (MFN) handling, and transparency. There are a number of goals that these two parties aim to attain through the agreement. For starters, they plan to embolden expansion and variation of trade between the two nations, eradicate obstacles to trade, and simplify the cross-border movement of goods between the nations. Another goal encompasses the promotion of state of affairs of fair competition in the free trade area, creation of operational procedures for the execution and solicitation of this agreement, for its dual running, and for the resolve of disputes. Lastly, the FTA purposes to continue instituting a charter for additional bilateral, regional, and multifaceted cooperation to enlarge and augment the welfares of this agreement. The agreement entails the objective that both nations shall make certain that all the required and essential measures are undertaken so as to ensure that the provisions delineated come into effect in their corresponding territories (China FTA Network).
Chile -- European Union Trade Agreement
The Free Trade Agreement between Chile and the European Union came into effect at the onset of 2003. Within the charter of the EU-Chile Association Agreement, there has been a committee created, referred to as the Association Committee and Special Committees. In particular, this committee conducts a meeting once each year to cope with any issues regarding the bilateral trade, any obstacles or aggravations and also to evaluate additional prospects for broadening trade and investment between the EU and Chile. The agreement between the two nations entails that both… [END OF PREVIEW]
Cite This Paper:
APA FormatAnalyzing Chile Trade Agreements. (2016, March 31). Retrieved May 20, 2017, from http://www.essaytown.com/subjects/paper/analyzing-chile-trade-agreements/5039045
MLA Format"Analyzing Chile Trade Agreements." 31 March 2016. Web. 20 May 2017. <http://www.essaytown.com/subjects/paper/analyzing-chile-trade-agreements/5039045>.
Chicago Format"Analyzing Chile Trade Agreements." Essaytown.com. March 31, 2016. Accessed May 20, 2017.