The evolving nature is an important aspect of the agreement, which contains a series of instruments to expand and modernize its coverage, including an evolving clause on agricultural goods.
Following the United Kingdom’s December 31, 2020 departure from the European Union, the Association Agreement between Chile and the United Kingdom becomes effective as of January 1, 2021. The instrument, which transfers the conditions of the agreement between Chile and the European Union, will safeguard the continuity of Chilean exports to the British market, providing certainty to exporters from both countries.
Upon signing the agreement approximately two years ago on January 31, 2019, Chile became the world’s first country to sign this type of agreement with the United Kingdom. The Undersecretary of International Economic Relations, Rodrigo Yáñez, noted that “the central aim of this agreement is to protect bilateral trade and safeguard jobs at SMEs and Chilean exporters, given the importance of their contribution to economic reactivation.”
The evolving nature is an important aspect of the agreement, which contains a series of instruments to extend and modernize its coverage, including an evolving clause on agricultural goods. This establishes that in a period of two years (and every two years, afterwards) the parties will review the situation of the tariff liberalization for agricultural goods. Since 86% of Chilean shipments to the UK are food, the clause makes it possible to improve conditions for our exporters and fully harness their broad potential.
Bilateral trade
In 2019, trade with the United Kingdom totaled US$1.2 billion. Since 99.9% of Chilean exports to the European country are non-copper goods, this is a strategic market for non-traditional export offerings. With an investment stock of US$11.9 billion as of 2018, the United Kingdom is the fourth largest European investor in Chile, representing 11% of European investment in the country. QUESTIONS AND ANSWERS ABOUT THE CHILE-UK ASSOCIATION AGREEMENT UK DEPARTMENT FOR INTERNATIONAL TRADE INFORMATION
Source: www.chilereports.cl