On 30 January 2019, the Department of International Trade announced the signing of the Agreement establishing an Association between the United Kingdom of Great Britain and Northern Ireland and the Republic of Chile (UK-Chile Agreement), a trade continuity agreement between Chile and the UK. The UK-Chile agreement will insure that each countries’ goods will continue to benefit from preferential trading arrangements after the UK exits the EU on 29 March 2019, or after an implementation period, if UK-EU negotiations are successful. The UK expects to sign a number of other agreements due to be agreed in the coming weeks. The announcement said:
UK manufacturers benefit from preferential access to the Chilean market to sell their goods, and UK consumers benefit from lower prices on Chilean goods, such as wines, fruits and nuts and other products.
Trade in goods and services between the UK and Chile has grown by 9% per year on average since the agreement was provisionally applied in 2003. UK exports to Chile have grown by 16% on average each year and a total increase of 351% since the agreement was provisionally applied.
The agreement also protects intellectual property rights and maintains preferential market access for trade in services.
It will also allow British and Chilean companies to bid for some public sector contracts in each other’s countries, helping to create jobs and deliver better value for taxpayers.
The new UK-Chile Agreement replicates the existing trading arrangements as far as possible. It will come into effect as soon as the implementation period ends in January 2021, or on 29 March 2019 if the UK leaves the EU without a deal.