What’s the Australia-Chile Free Trade Agreement?
In recent years, Australia and Chile have been building their relationship, developing their diplomatic ties and forming their trade relation.
As part of Latin America, Chile has to break norms and misconceptions about their region when it comes to foreign affairs and trade. But now, with their connection with Australia and their growing economic stand in the global scene, Chile has opened its doors to share its resources and culture. Meanwhile, Australia has strengthened its economy because of its continuous effort to promote it, build relations and form trade agreements with Latin America. And one is the Australia-Chile Free Trade Agreement.
An Overview: Australia-Chile Free Trade Agreement
After years of establishing trade between Australia and Chile, The Australia-Chile Free Trade Agreement was signed on March 6, 2009.
This free trade agreement covers a different aspect of the business, doing trade in goods, services, and investment. With all the agreements that Australia had negotiated, the Australia-Chile Free Trade Agreement is said to be the most comprehensive one, tackling trade with another agricultural producing country, like Chile.
And because of this agreement, from the start of 2015, all tariffs were eliminated, except sugar. It still has its six percent for Australian exports, imposed because of Chile’s price-band system. This is only one of the good results of the agreement. After it entered into force, there has been an apparent increase of Australian investors and businesses operating in Chile. It has also expanded the engagement between the two countries, opening new markets.
Australian has gained a wider Latin American market. Meanwhile, Chile has attracted businesses to enter their country. Australian has gained a wider Latin American market. Meanwhile, Chile has attracted businesses to enter their country. With Chile obtaining over 120 Australian companies, there is a well-worn path for establishing a sustainable presence in this market.
This also opened exports from Australia to Chile. These goods include coal, civil engineering equipment, specialized machinery, and vehicles. Working together, Australia and Chile have created new opportunities in different sectors of their economy, including trade and investments in the following sectors:
- mining and energy technology and services
- engineering and consulting services
- education and training
- information technology
- chemicals and industrial products and technologies
Australia and Chile have also tapped into the sectors of energy, agriculture, and trades on food and beverages, especially wine.