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Canada-Chile Free Trade Agreement (Ccfta)

The Canada-Chile Free Trade Agreement (CCFTA) is a bilateral trade agreement between Canada and Chile, which came into effect on July 5, 1997. The agreement, which covers a wide range of goods and services, was the first free trade agreement that Canada signed with a South American country. Since then, it has played an important role in boosting trade between the two countries.

Under the CCFTA, almost all goods produced in Canada and Chile are eligible for duty-free treatment. This means that Canadian businesses can export a wide range of goods, including agricultural products, seafood, forest products, and manufactured goods, to Chile without paying any tariffs. Similarly, Chilean businesses can export a range of goods to Canada, including wine, fruits and vegetables, seafood, and manufactured goods, without paying any tariffs.

The CCFTA also covers several services sectors, including telecommunications, computer and related services, construction and engineering services, financial services, and tourism services. This means that Canadian businesses can provide these services to customers in Chile without any restrictions, and vice versa.

The CCFTA has been instrumental in promoting trade between Canada and Chile. Since its implementation, bilateral trade between the two countries has more than tripled. In 2019, Canada`s exports to Chile amounted to over $694 million, while Chile`s exports to Canada amounted to over $1.2 billion.

In addition to boosting trade, the CCFTA has also had several positive impacts on the economies of Canada and Chile. For example, it has helped to create jobs in both countries, particularly in the agricultural and manufacturing sectors. It has also encouraged investment between the two countries, as businesses in both Canada and Chile have a more stable and predictable trade relationship.

While the CCFTA has been largely successful, there have been some challenges. For example, some Canadian businesses have faced difficulties accessing the Chilean market, particularly in the areas of intellectual property and government procurement. Similarly, some Chilean businesses have faced barriers to accessing the Canadian market, particularly in the areas of agriculture and seafood.

Despite these challenges, the CCFTA remains an important part of the trade relationship between Canada and Chile. As both countries look to expand their trade relationships with other countries around the world, the CCFTA provides a solid foundation for continued cooperation and success.

Author

wandreh2015