The United Kingdom and Chile have recently reached a free trade agreement that has sparked interest from global traders. The agreement, which was signed on January 22nd, 2021, is seen as a significant milestone in the post-Brexit trading relationship between the UK and countries in the Latin American region.
With the UK’s departure from the European Union, there has been a renewed focus on securing bilateral trade deals that would help the country establish itself as a global trading hub. The UK Chile free trade agreement is seen as a crucial step in this direction, owing to Chile’s strategic position as a gateway to the wider Latin American market.
This agreement would enable UK businesses to trade with Chile on the same terms as they did when the UK was part of the European Union. It ensures that UK exporters will not face tariffs on 98% of goods traded with Chile and that the deal would help reduce non-tariff barriers, enhancing opportunities for UK businesses.
The agreement is also seen as a comprehensive trade deal that covers digital trade, intellectual property, and the environment, among other areas. This could further enhance the UK’s reputation as a trading partner that upholds ethical and environmental standards while promoting free trade.
The UK and Chile have enjoyed historic links since the early 19th century, with mining being a vital component of bilateral trade. The UK is currently Chile’s second-largest foreign investor, with over 400 UK companies operating in the country.
The free trade agreement is expected to boost trade in goods and services that include machinery, automobiles, and financial and legal services, among others. This could help create jobs and economic growth in the UK and Chile.
In conclusion, the UK Chile free trade agreement represents a significant milestone in post-Brexit trade as the UK looks to setting itself up as a hub for global trade. The agreement is expected to enhance the UK’s trading relationship with Chile and the wider Latin American region while promoting growth and job creation.