Us Chile Free Trade Agreement

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Second, a slight shift towards a production-based value-added approach to export promotion may limit long-term economic growth, a point developed by a study by the Inter-American Development Bank (TSA), which argues that the relatively low income growth of commodity-exporting countries is due to this lack of export diversification. Although many Latin American countries have expanded their intra-regional trade, deeper integration with developed economies appears necessary to achieve greater export diversification. There appear to have been competing positions on the appropriateness of a free trade agreement between the United States and Chile. A look at Chile`s economic development is a way to address many, if not all, of the above issues, precisely because Chile has been an early and aggressive reformer of economic and trade policy in Latin America. In this context, to the extent that the well-being of Chilean society has improved through economic openness, this could indicate that freer trade can support a wide range of economic and political objectives. With this in mind, this report incorporates a debate on Chile`s economic growth and development, with trade policy issues raised in the United States and Chile. The policy of “open regionalism” took shape in the early 1990s, when Chile signed economic complementarity agreements with Bolivia, Mexico, Venezuela, Colombia and Ecuador under the guidelines of the Latin African Integration Association (ALADI). Similar agreements followed with Peru and Argentina. Chile has signed free trade agreements with Canada, Mexico and Central America. In April and October 2002, Chile concluded negotiations for a free trade agreement with the European Union and South Korea. It is currently courting other countries such as Japan, New Zealand and Singapore and is concluding an agreement with the European Free Trade Association (EFTA), see Appendix D. All are seen as part of a strategy to open up the industrial economy to Chilean exports.

Chile joined Mercosur in 1996 as an associate member and limited its commitment, in part because of Mercosur`s increased external tariffs. Chile is also an active participant in the World Trade Organization (WTO) and sees it as a place where controversial issues, less suited to regional or bilateral discussions, can be resolved. In keeping with its long-standing policy, CalChamber supports global free trade, the development of international trade and international investment, fair and equitable access to the California product market abroad, and the removal of barriers to the international competitiveness of California`s operations. New multilateral, sectoral and regional trade agreements ensure that the United States can continue to access global markets, improving the economy and increasing American employment. Chile`s sensitivity to anti-dumping investigations in the United States was based on their “frequent and sometimes unjustified use,” and Chile argued that the mere submission of dumping charges had opened a proceeding involving significant non-refundable costs, regardless of the outcome of the investigation. In recent years, anti-dumping investigations have been conducted on Chilean salmon, mushrooms, grapes and raspberries.