Trade between Brazil and Chile stands out due to the billionaire transactions that take place every year.
The trade and distribution of products through road transport in Latin America is a very strong point of Brazil that has been explored. After all, the request for this type of service has grown in recent years and heated up the road transport sector, especially in relation to international companies in Chile.
According to data from the Foreign Trade Secretariat (Secex), linked to the Ministry of Economy, Brazil recorded an impressive increase of over 81% in sales to Chile in 2021, equivalent to more than US$ 6,99 billion. This significant increase has highlighted even more the importance of the free trade agreement between Brazil and Chile, which favors and reduces bureaucracy in relations, especially in relation to road transport for companies.
Understand a little more about the importance of the free trade agreement between Brazil and Chile and how it helps the exports of Brazilian companies with the video below
The free trade agreement between Brazil and Chile was created in 2018, still under the government of Michel Temer, but entered into force in January 2022
This agreement between the countries has existed since 2018, when it was signed and put into practice by Michel Temer, the president at the time. It was voted on and, in September 2021, was approved by the National Congress, taking effect from January 2022. The agreement is broad and covers several topics to reduce bureaucracy in trade relations between the two Latin American countries, especially under the Services.
The document is so complete that it brings topics such as geographical indications, sanitary and phytosanitary issues, customs procedures, purchases made by governments, services, types of investments and issues related to import and export. With the force of this agreement, Brazilian companies have an open and easy way to close business with other companies in Chile.
The international flow of goods and services, in addition to road transport, will be boosted with this agreement
The president of ABC Cargas, one of the largest road transport companies in Brazil, Danilo Guedes, brings very optimistic reports about this new agreement in the country. He points out that this will generate a great boost in business after the pandemic and bring the economy of both countries closer together.
“In addition, the agreement brings several benefits to companies that provide this type of service, such as simplified documentation, and fewer technical and sanitary barriers, since the document provides for the creation of rules that authorize the use of digital documents and many others” .
Danilo Guedes, President of ABC Cargas (2022)
Chile is the fifth largest destination for Brazilian products, and facilitating the export of our products will only bring more profit to national companies. In addition, the goods that go there are the most diverse, ranging from beef and oil to cars and heavier machinery. That is, the agreement comes to feed even more a market that is already expanding.
Road transport will be favored and will generate competitiveness for international companies in Chile
The agreement closed and in force is modern in terms of determinations. This has positive impacts on the road transport sector, which suffered greatly from bureaucracy and the imposition of high export taxes.
"Cargo road transport suffers a lot from bureaucratization and slowness at the borders, and this facilitation is something that the entire logistics chain, exporters, importers and logistics operators were waiting for to move forward with negotiations for greater services in the country”
Danilo Guedes, President of ABC Cargas (2022)
That is, with this new scenario, national companies will be encouraged to close business with Chile and will be more competitive in the country with local suppliers. The company ABC Loads had a 65% increase in international business in 2021, and is already working to contemplate its new contracts with Chilean companies and closing contracts favored by the Federal Government agreement.
