Upon entry into force of the U.S.-Chile Free Trade Agreement (FTA) in 2004, 80 percent of U.S. consumer and industrial goods exports to Chile became duty free. Tariffs on the remaining products have been nearly phased out. To be eligible for tariff-free treatment under the FTA, products must meet the relevant rules of origin.
The FTA also provides favorable access for U.S. service suppliers and guarantees of protection to U.S. investors and U.S. copyrights, trademarks and patents registered in Chile. In addition, Chile has opened up significant government procurements to U.S. bidders.
Chile’s open economy and strong democratic institutions make it one of the most stable countries for doing business in the region. The U.S.-Chile FTA also provides a framework that makes Chile an ever better place to do business.
U.S. goods exports to Chile have nearly recovered to the record level of $12 billion in 2008 before the global financial crisis slowed the pace of overall U.S. trade. In 2010, Chile’s economy grew by 5 percent and its inflation remained below 2 percent.
In the seven years since the U.S.-Chile FTA went into effect, U.S. exports to Chile increased by 300 percent, growing from $2.7 billion in 2003 to $10.9 billion in 2010. Principal U.S. exports to Chile in 2010 were machinery, mineral fuel, oil, vehicles, electrical machinery, and plastic. U.S. exports of services to Chile have also grown substantially, reaching over $2 billion in 2009.