The Free Trade Agreement (FTA) between the Government of Canada and the Government of the Republic of Chile is a landmark agreement that has opened up new opportunities for trade and investment between the two countries. The agreement was signed on December 5, 1996, and came into force on July 5, 1997.
The FTA aims to eliminate tariffs on nearly all goods traded between Canada and Chile, with some exceptions for sensitive products. It also provides for the elimination or reduction of non-tariff barriers to trade, such as restrictions on the importation of goods, services, and investments.
The FTA has had a positive impact on the bilateral trade relationship between Canada and Chile. Between 1997 and 2019, bilateral trade between the two countries increased from $696 million to $2.7 billion, representing an increase of nearly 300%.
In addition to facilitating trade in goods and services, the FTA has also increased investment flows between Canada and Chile. Canadian investment in Chile has grown significantly since the agreement came into force, with Canadian companies investing in sectors such as mining, energy, and telecommunications.
The FTA has also had a positive impact on the people of Canada and Chile. It has created new job opportunities in both countries, increased access to goods and services, and stimulated economic growth.
However, the FTA is not without its challenges. Some Canadian stakeholders have expressed concerns over issues such as environmental standards and labour rights in Chile. These concerns have led to calls for the inclusion of stronger environmental and labour provisions in the agreement.
Despite these challenges, the FTA between Canada and Chile remains an important agreement that continues to benefit both countries. As the global economy becomes increasingly interconnected, trade agreements such as the FTA will continue to play a vital role in promoting economic growth and prosperity.