On December 14, 2020, Chilean officials announced a new agreement with the United States that will expand trade and investment opportunities between the two countries. The agreement, known as the U.S.-Chile Digital Economy Agreement, aims to promote e-commerce, digital trade, and cross-border data flows.
This agreement is significant because it will eliminate tariffs on digital products and services, such as software, music, and movies, and protect intellectual property rights. It will also encourage cooperation on cybersecurity and data privacy issues.
The agreement builds on a previous free trade agreement between the two countries, which has been in place since 2004. Since then, bilateral trade has increased by over 300%. Chile is currently the United States` fifth-largest trading partner in Latin America and the Caribbean.
The U.S.-Chile Digital Economy Agreement comes at a time when the global economy is increasingly reliant on digital technologies. With more people working remotely and relying on e-commerce, the agreement will help to further modernize trade relations between the two countries.
Additionally, the agreement creates new opportunities for small and medium-sized enterprises (SMEs) to access international markets. SMEs make up a significant portion of Chile`s economy, and the agreement will allow them to expand their reach and compete with larger companies.
Chile`s government has been actively seeking to expand its trade relationships beyond Latin America. Earlier this year, Chile signed a free trade agreement with Canada, and the country is currently negotiating a trade agreement with China.
Overall, the U.S.-Chile Digital Economy Agreement is a promising step towards furthering economic cooperation between the two countries. By promoting digital trade and protecting intellectual property rights, the agreement will help to modernize trade relations and support the growth of small businesses.