In January 2019, Chile became the first country in the world to sign a continuity trade agreement with the UK, safeguarding market access preferences for British companies. This was part of an extensive government effort to strengthen transition agreements the UK was part of as an EU member, ensuring certainty for businesses, consumers and investors.
After its entry into force, we have held series of bilateral trade dialogues and technical discussions, where we have discussed ways to improve our agreement but also to optimise its usage. At end of 2022, the British Embassy in Santiago commissioned a study on the utilisation of the UK Chile agreement. Seeking to measure usage by companies, assess utilisation by different industries and understand priorities for companies in cross-border trade. We also considered country specific issues to identify and address. Chile is somewhat of an exception in world-trade with a flat 6% MFN tariff for imports, much lower than most neighbours; a country open to trade with agreements with 35 economies; and particular tax incentives for some goods.
In February 2023, the research process concluded with a workshop for selected companies, custom agents, experts and trade associations in an interactive exercise at the Deloitte Greenhouse office. The British Ambassador, Louise De Sousa, and Rodrigo Yañez, Lead Partner at Deloitte Global Trade and Investment (Chile), gave remarks to attendees highlighting the contributions to increasing Chile UK trade that the research envisages and encouraging attendees to discuss primary findings.
The research process concluded with a workshop for selected companies, custom agents, experts and trade associations in an interactive exercise at the Deloitte Greenhouse office.
A final report was drafted thereafter, including quantitative, qualitative research conducted before the workshop, complemented by additions made during the workshop.
The report identifies critical products and importers, classifying usage by products and companies. It pays attention to sector-specific findings in pharmaceutical and capital goods, where C19 issues are highlighted, as well as a particular, and parallel, regime exists allowing for capital goods imports in Chile.
As topics for further discussion for policymakers and the UK Chile business community are potential improvements to transit and rules of origin. Trade facilitation was the area most sought by companies to reduce administrative burden and increase overall usage.
