The Advantages Of Free Trade Rules With The Neighboring Country Include Facilitation Of Telecommunications, Investments, And Reduction Of Technical And Sanitary Barriers.
The agreement between Brazil and Chile, which came into force on January 25, 2022, represents a milestone in the trade relations between the two countries. Aiming to boost bilateral trade, the agreement brings benefits for both nations, allowing for a significant increase in exports and imports between them. Moreover, the treaty aims to facilitate access to products and services, promoting an environment of greater cooperation and economic integration.
The agreement signed between Brazil and Chile is another important step towards greater integration among Latin American countries. With this pact, the two nations reinforce the commitment to strengthening trade relations and expanding markets. Thus, the convention represents a unique opportunity to boost economic development and mutual prosperity, opening new possibilities for business and investment.
1. (Fewer) Technical Barriers: Organic Products Now Have Free Trade
The goal of facilitating bilateral trade between Brazil and Chile has been reinforced with each agreement, treaty, and convention established between the two countries. One of the main advantages of the Free Trade Agreement Brazil-Chile is the reduction of technical barriers in exports.
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What is considered organic in Brazil is also recognized in Chile. Products with approval from the certifying authority of one country can be marketed in the other, dispelling the need for certification from the buyer in the country of origin. The equivalent certifications are: Brazilian System for the Evaluation of Organic Compliance and National System of Certification of Organic Agricultural Products.
2. Sanitary And Phytosanitary Measures: Automatic Recognition And Duty-Free Areas
In addition to technical issues, sanitary or phytosanitary measures are essential for Chilean and Brazilian exports. The agreement between the countries reinforces and enhances the commitments of the Agreement on the Application of Sanitary and Phytosanitary Measures, known as the SPS Agreement, at the WTO.
One of the innovations is the automatic recognition, by the importing country, of companies authorized by the exporting country to market their agricultural products, called pre-listing. Brazil is one of the first Latin American countries to have this mechanism with Chile.
3. Telecommunications: International Roaming Is Now Free
The ease of telecommunications is a positive point of the Free Trade Agreement between Brazil and Chile. Since July 25, 2023, Chilean operators can only charge the same prices for mobile services in their own country, eliminating the charges for international roaming. This measure benefits the service sector and travelers between the two countries.
4. Government Procurement: US$ 12.5 Billion Market Open For Suppliers
One of the significant opportunities generated by the Agreement is access to the Chilean government procurement market, which represents an amount of US$ 12.5 billion annually. The text of the agreement promotes better competitive conditions for the private sector in Brazil in the neighboring market, receiving the same treatment as Chilean suppliers.
5. Investments: Safer And Simplified Rules
Regarding investments, the agreement reinforces legal security and simplifies procedures for Brazilian investors wanting to operate in the Chilean market and vice-versa. The rules of the Free Trade Agreement between Brazil and Chile also allow transfers without delays, in a freely usable currency according to the exchange rate in the market on the date of transfer.
6. Regional And Global Value Chains: Inclusion Of MSMEs Encouraged
Another highlight of the agreement is the encouragement for the inclusion of micro, small, and medium enterprises in regional and global value chains. The priority for 2023 is on sectoral linkages in the bioindustry, health complex, and information technology. This opens doors for the expansion of MSMEs in international markets.
Extra: Business Visa And Intellectual Property Recognition Made Easier
In addition to the advantages for key economic sectors, the agreement also brings benefits in terms of business visas and intellectual property recognition.
Source: National Confederation of Industry (CNI)
Source: Industry Portal

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