Modernization of the FTA between Chile and Canada enters into force
On Tuesday, two new agreements that modernize the Free Trade Agreement (FTA) between Chile and Canada entered into force (in force since 1997, being the first FTA signed by Chile with a developed country). These incorporate new disciplines such as sanitary and phytosanitary issues, technical barriers to trade, modifications to the Chapter on Public Procurement and Investment, as well as a Gender and Trade Chapter (the first in the case of Canada).
"The foreign policy of Chile, which defines President Sebastián Piñera and executes our Foreign Ministry, seeks concrete benefits for Chilean citizens. Modernizing this FTA with Canada is undoubtedly a contribution to Chilean entrepreneurs, which results in more opportunities, a more dynamic economy and more jobs, "said Foreign Minister Roberto Ampuero.
"With the entry into force, the agreed measures begin to govern, which we are sure will be of great benefit to our exporters. For example, within the chapter of Technical Barriers to Trade, provisions are established that facilitate trade in organic products, "said Direcon's Director General, Rodrigo Yáñez.
Regarding the modifications to the Public Procurement Chapter of the Agreement, a new ground was agreed that allows reducing the deadlines for the submission of bids provided that the bidding process is carried out entirely by electronic means, thus facilitating more expedited processes
In relation to the new Investment Chapter, Chile and Canada negotiated a series of modifications to improve the legal regime for reciprocal investments; very important improvements all over time that Canada is the seventh foreign investor in Chile.
With respect to the Gender and Trade Chapter, its purpose is to increase the participation of women in international trade, through the implementation of joint actions and promotion of new measures to achieve this goal. This is the first chapter of this type signed by Canada and the second by Chile, which already included this topic in the agreement signed with Uruguay in 2016.
Close collaboration
The close bilateral relations between Chile and Canada are broad and based on shared values, including commitment to democracy, human rights, free trade and multilateral cooperation. This translates into the different working groups that participate in multilateral organizations such as the WTO and APEC. They are also part of the commercial blocks in CPTPP and Alianza del Pacífico, where Canada is in the process of negotiating to become an Associate Member of the bloc.
In addition, Canada invited Chile to be part of a group of similar countries of the World Trade Organization, which seeks to strengthen and modernize it so that it continues to play a critical role in the promotion of global trade.
Trade and investments
According to Direcon figures, the 2018 exports to Canada reached US $ 1.041 million, highlighting the growth of silvoagricultural exports with US $ 119 million (13% with respect to 2017), and industrial exports with US $ 401 million (15% ).
As of December of 2017, direct Chilean investment materialized in Canada places this country as the seventh destination, reaching US $ 1.825 million, or an 1,5% of the total investment abroad.
The main recipient of these investments is the Mining sector, with an 81,2% share of total investments, or US $ 1.482 million of investment.
Chilean Fruit Exports to Canada
While there is a percentage of fruit that arrives in Canada through the United States, statistics from ASOEX show that during the 2017-2018 campaign, Chile sent 58.082 tons of fresh fruit to that northern market, a figure that was 4,24% higher than the 2016-2017 exercise.
The main species exported from Chile to Canada are apples, table grapes, blueberries, nectarines, plums, tangerines, kiwis and peaches.
Share (%) of the Main Fruits Sent by Chile to Canada
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