UK-Chile Trade Deal Under the Microscope
The British Embassy in Santiago has dug into how well the UK-Chile trade agreement, signed in 2019, is working for businesses. The study launched at the end of 2022 aims to see if British firms are making the most of the pact.
Chile: The UK’s First Continuity Trade Partner
Back in January 2019, Chile became the world’s first country to ink a continuity trade deal with the UK, protecting key market advantages for British companies post-Brexit. This move was part of a wider UK government push to secure smooth trade transitions after leaving the EU.
Since the agreement kicked in, the UK and Chile have held several trade talks and technical meetings. They discussed boosting the deal’s benefits and making it easier for businesses to use.
Deep Dive Into Trade Usage
The Embassy’s 2022 study examined how many companies are using the deal, which sectors are benefiting, and what obstacles remain. Chile’s flat 6% Most Favoured Nation tariff on imports stands out compared to neighbours. Plus, Chile is open to deals with 35 economies and offers unique tax breaks on some goods.
In February 2023, a workshop at Deloitte Greenhouse in Santiago brought together companies, customs agents, and trade experts. British Ambassador Louise De Sousa and Deloitte’s Rodrigo Yañez welcomed the group, encouraging discussions on how to boost Chile-UK trade.
Key Findings & Future Steps
The final report highlights key products and importers leveraging the deal, with a sharp focus on pharmaceuticals and capital goods. It notes challenges linked to COVID-19 and Chile’s special regime for importing capital goods.
Businesses called for easier transit rules and clearer rules of origin to cut red tape and expand trade. Trade facilitation topped the list as the biggest area where companies want improvement.
Bottom line: the UK-Chile trade agreement is working but could work better with some tweaks to cut bureaucracy and help more businesses cash in.
