Presidents Piñera and Temer formalize working group for a Chile-Brazil Free Trade Agreement
The Presidents held a meeting at the Planalto Palace in Brasilia and signed agreements to promote bilateral trade, boost public procurement and facilitate financial investments. "This visit has been short, but it’s been very productive, and it has been a successful trip. We have reached important agreements between Brazil and Chile,” stated President Piñera.
The President of Chile, Sebastián Piñera, accompanied by his Brazilian counterpart, Michel Temer, announced on Friday the beginning of negotiations for a Free Trade Agreement (FTA) focused on tariff liberalization, in order to modernize the existing bilateral relationship between the two countries.
The agreement, work on which is expected to conclude over the course of the present year, will seek to incorporate standards in terms of facilitating trade, regulatory aspects, e-commerce and trade in services, among others.
"We are beginning urgent talks on a free trade agreement between Brazil and Chile right away. This is something both countries have always wanted, and we are going to make it a reality," said President Piñera.
The signing of this agreement will provide greater legal certainty in different areas of trade, helping to further diversify the current export basket.
Brazil is currently Chile’s third largest trading partner, surpassed only by China and the United States. In 2017, trade between Chile and Brazil exceeded US$9 billion.
"Chile is Brazil’s second biggest trading partner in South America with a level of trade that is not only very robust but is also demonstrating strong growth. Moreover, Brazil is the first destination of Chilean investments abroad, with more than US$30 billion," said the President.
Along with the FTA, a public procurement agreement was signed between Chile and Brazil that will establish a common framework of principles and rules for bilateral trade in this area, with a view to expanding commercial opportunities, all under conditions of transparency, equality and non-discrimination. This will allow for economic growth to be stimulated in both countries, in addition to boosting bilateral investments, the competitiveness of the companies of each country in global markets and efficiency on the part of public procurement institutions.
Brazil is the largest public procurement market in the entire region, with transactions equivalent to between 10% and 15% of its GDP, according to data provided by the Brazilian Planning Ministry, and which represents between US$179.6 billion and US$269 billion.
An agreement was also signed to ensure the non-discrimination of financial services investors and investments from both countries, thus guaranteeing equal treatment with domestic investments and investors.
Furthermore, bilateral fora will be established in terms of social security, energy, Antarctic cooperation, biofuels, education and entrepreneurship.