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DEC. 2, 2021

Foreign Affairs Ministers of Chile and Paraguay sign Free Trade Agreement between the two countries

Chile’s Foreign Affairs Minister, Andrés Allamand received his Paraguayan counterpart, Euclides Acevedo, in Santiago to sign an agreement that modernizes the regulatory framework and the existing bilateral relationship, which, until now, were governed by the Economic Complementation Agreement ACE 35.

Chile’s Foreign Affairs Minister, Andrés Allamand, received his Paraguayan counterpart, Euclides Acevedo, in Santiago today, in a meeting aimed at deepening trade ties and strengthening the bilateral agenda. 

During the visit, the foreign ministers signed a Free Trade Agreement between the two countries. The negotiations were finalized last October and reaffirmed the strategic link between Chile and Paraguay. 

This pact updates the regulatory framework and the existing bilateral relationship, which, until now, were governed by the Economic Complementation Agreement ACE 35, signed by Chile and MERCOSUR (Southern Common Market) countries in the 1990s, particularly focused on tariff liberalization. 

In addition to contributing to increased trade with Paraguay, the new agreement concludes a series of negotiations that Chile has already successfully carried out with other MERCOSUR countries – Uruguay, Argentina and Brazil – with the aim of complementing production schemes. 

“This agreement includes measures aimed at increasing trade and promoting job creation in our countries, which will have a positive impact on post-pandemic economic reactivation. It also incorporates matters such as gender, labor issues and the environment,” Minister Allamand stated. 

In the ceremony held at the Foreign Affairs Ministry, the ministers also signed five bilateral agreements: The Reciprocal Recognition and Exchange of Driver’s Licenses; Cooperation in the Defense Sector; Strengthening the Prevention, Investigation and Assistance to Victims of Human Trafficking; Cooperation in the area of Telecommunications and Digital Economy; and Cooperation between the Diplomatic Academies of both countries. 

As recognition of his work advancing constructive relations between the two nations, Minister Acevedo presented Minister Allamand with the National Order of Merit, awarding him the “Extraordinary Grand Cross” on behalf of the Government of Paraguay. 

“I proudly accept this award with which Paraguay is honoring me and I hope to continue working actively to diversify our already broad bilateral agenda, thus strengthening relations between our countries,” Minister Allamand said. 

“These are characterized by collaboration and reciprocal support at the regional and multilateral levels, as well as cooperation and technical assistance in various areas, and physical integration. Chile considers it important to advance the implementation of the Bi-Oceanic Corridor, in order to improve regional connectivity and the flow of people and goods between our countries and the Asia-Pacific markets. I should point out that the Warehouse and Free Trade Zone in Antofagasta, established in 1968, is available for this purpose. It would also be important to count on Paraguay’s participation in the Humboldt Project, which will digitally connect the Southern Cone with Asia,” he added. 

Minister Acevedo expressed Paraguay’s support for the Humboldt Project and stressed, “we put particular emphasis on the Bi-Oceanic Corridor that will link the Atlantic with the Pacific and will have Chile’s ports as its main destination and technical stopover. For Paraguay as a landlocked country, this has an undeniable and at the same time immeasurable transcendence.”