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Events > UK-Chile Association Agreement
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UK-Chile Association Agreement

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Chile is an important and growing partner for the UK with the potential to increase and diversify our trade and investment relationship. Following the UK’s departure from the European Union (EU), the countries have agreed to enhance this relationship through the UK-Chile Association Agreement. The agreement took effect on 1st January 2021, when the existing EU agreement ceased to apply to the UK.

The treaty covers key points such as:

  • Certificates and Declarations of Origin

  • Preferential Tariff Rates on Goods

  • Sanitary and Phytosanitary Certification

  • Cumulation of Origin 

  • Goods in Transit in an EU Country

The UK and Chile have an annual Trade Dialogue that examines ways to boost bilateral trade. The work is led by Ministers and, at the 2021 Association Council, they agreed to a modernisation exercise to review elements of the UK-Chile Association Agreement. You may find treaty documents and more relevant information about Trade with Chile at the UK-Chile Association Agreement page at GOV.UK.

 

Facts and Figures on UK-Chile Trade

  • In 2020, Chile was the UK’s fourth largest trading partner in Latin America with total bilateral trade worth £1.4bn (Source: ONS, 2021).

  • Since liberalisation started in 2003, trade in products and services between the two countries has increased by an average of 9% annually (Source: Press release DIT, 2019).

  • UK exports to Chile have increased on average 16% per year, and by 351% since the EU agreement took effect in 2003 (Source: Press release DIT, 2019).

  • Commitments on preferential tariffs for both the UK and Chile have been transitioned without changes, remaining the same as in the EU Agreement (Source: Parliamentary Report, 2019).

  • Exports of UK capital goods to Chile are now tariff-free (Source: Parliamentary Report, 2019).

  • Tariff-rate quotas (TRQs) negotiated under the UK-Chile FTA allow a certain volume of British cheese, fish, hake and salmon to enter the Chilean market at preferential tariffs (Source: Parliamentary Report, 2019).

 

Key sectors

  • Financial Services in Chile represent 5.9% of the country's GDP, the highest ratio in Latin America and above the OECD average (Source: Banco Central de Chile, 2020).

  • The Food & Drink sector in Chile accounts for 10.4% of the country's GDP with products such as wine and salmon, making the country a Latin America hub for food processing and distribution (Source: Programa Estratégico Nacional Transforma Alimentos, 2020).

  • The Creative Industries in Chile are primed for growth, as a public-private plan to promote R&D investments in technological development is implemented. The plan will focus on Start-ups and SMEs (Source: OECD, 2020). 

  • The Chilean Government has plans for large public investment in the Infrastructure sector as part of their COVID-19 pandemic recovery plan (Source: Chilean Government's Economic Recovery Plan, 2020). 

  • Chile is currently running 81 Infrastructure projects, becoming the second largest country in Latin America in for total amount of infrastructure investment with a total of £28.9bn (Source: BNAmericas, 2020).

  • In the Energy sector, the Chilean government plans to decommission all thermoelectric generators by 2040, and achieve 70% of net generation from renewable energy by 2030 (Source: Comisión Nacional de Energía, 2020).

  • The Biopharmaceutical Competitiveness and Investment Attractiveness Index put Chile as the top ranking nation in Latin America, signalling promising opportunities for the Life Sciences industry (Source: Biopharmaceutical Competitiveness and Investment Attractiveness Index, 2017).

  • Chile offers great opportunities for UK Agriculture & Livestock exporters of animal genetics – in fact, the UK is the only country in Europe which is authorised to export ovine and caprine embryos (Source: DEFRA/SAG, July 2021).

  • The Education sector in Chile has tradition and prestige in Latin America. During 2021, new players are expected to enter the business due to the opportunities opened up by online education and digital transformation, increasing its turnover by over 50% (Source: AGITECH, Association of EdTech Companies in Chile).

Businesses looking for support in trading overseas may wish to use the services and tools available at GOV.UK assisting importers and exporters:

Trade with the UK          Check How to Export Goods 

 

More information

The Department for International Trade (DIT) has overseas staff based in British Embassies and Consulates across Latin America and the Caribbean (LatAC). Our role is to increase the UK’s prosperity and to champion free trade globally.

If you would like more information on how this agreement may apply to your business and sector, contact us in case you are:

Interested in Chile          Interested in the UK

 

Published 21/09.

Last updated 21/09.