UK-Chile Trade Deal Gets Under the Microscope
The British Embassy in Santiago has kicked off a deep dive into the 2019 UK-Chile trade agreement. The study, launched at the end of 2022, looks at how well British firms are cashing in on this deal.
Chile: First to Seal the Deal Post-Brexit
Back in January 2019, Chile became the very first country to ink a continuity trade agreement with the UK. This move locked in market access perks for British businesses after the UK left the EU. The deal aimed to keep trade flowing smoothly for companies, consumers, and investors.
Digging Into the Details
Since the deal took effect, the UK and Chile have held numerous trade talks to fine-tune and boost the agreement’s use. The British Embassy ordered a study to:
- Track how many companies are using the deal
- Evaluate usage across industries
- Identify priorities and roadblocks in cross-border trade
Chile stands out in global trade with a flat 6% most-favoured-nation tariff on imports—much lower than many neighbours. Plus, it’s got trade pacts with 35 countries and unique tax perks on some goods.
Workshop Spurs Action
In February 2023, a hands-on workshop at Deloitte’s Greenhouse office brought together businesses, customs agents, and trade experts. British Ambassador Louise De Sousa and Deloitte’s Rodrigo Yañez highlighted how the research helps boost Chile-UK trade and encouraged lively debate on key findings.
The final report combined data and insights from before and during the workshop. It zeroed in on critical products and major importers, with a spotlight on pharmaceuticals and capital goods—especially taking Covid-19 disruptions into account.
What’s Next for UK-Chile Trade?
Policymakers and the business community are eyeing improvements in transit procedures and rules of origin. The big takeaway? Companies want smoother trade facilitation to cut red tape and ramp up deal usage.
