日別アーカイブ: 2022年3月20日

The UK Chile Association Agreement: What You Need to Know

In recent years, the UK government has been working hard to secure trade agreements with countries outside of the EU, with particular focus on Latin America. One such agreement that has recently come into effect is the UK Chile Association Agreement. In this article, we`ll take a closer look at the agreement and what it means for businesses and consumers in both countries.

Background

Chile is the UK`s oldest trading partner in Latin America, and the two countries have a long-standing relationship. In 2018, trade between the two countries was worth over £1.6 billion, with the UK importing products such as wine, fresh fruit, and copper, and exporting goods such as cars, pharmaceuticals, and machinery.

The UK Chile Association Agreement was signed in January 2019, just before the UK officially left the EU. It is a continuity agreement that essentially replicates the terms of the pre-existing EU Chile Association Agreement, which had been in place since 2003. The UK government has described the deal as “a crucial step in ensuring UK businesses can continue to trade freely with Chile after we leave the EU.”

Key Provisions

The UK Chile Association Agreement covers a wide range of areas, including trade in goods and services, investment, intellectual property, government procurement, and competition. Some of the key provisions of the agreement include:

– Tariff reductions: The agreement removes tariffs on 99% of goods traded between the UK and Chile, representing a significant saving for businesses. This includes goods such as seafood, wine, and clothing.

– Rules of origin: To benefit from tariff-free trade, goods must meet certain rules of origin criteria, which ensures that they have a sufficient level of input from either the UK or Chile.

– Services: The agreement provides for the liberalisation of trade in services, including financial services, telecommunications, and transport.

– Investment: The agreement includes provisions to protect UK and Chilean investors, including protections against expropriation and the free transfer of funds.

– Intellectual property: The agreement provides for the protection of trademarks, patents, and other intellectual property rights.

– Government procurement: The agreement opens up government procurement markets in both countries, allowing companies to bid for public contracts on an equal footing.

– Competition: The agreement includes provisions on anti-competitive practices, ensuring that businesses in both countries are operating on a level playing field.

Impact on Businesses and Consumers

The UK Chile Association Agreement is good news for businesses and consumers in both countries. By removing tariffs and increasing market access, it is likely to lead to increased trade between the two countries and a boost to the economy. For UK businesses, it provides certainty and continuity, ensuring that they can continue to trade freely with Chile after the UK`s departure from the EU. For Chilean businesses, it provides access to a large and sophisticated market in the UK.

Consumers in both countries can also expect to benefit from the agreement. With increased competition, businesses may be incentivised to offer better prices and quality products, which in turn benefits consumers. For example, with the removal of tariffs on Chilean wine, UK consumers may be able to enjoy lower-priced Chilean wines.

Conclusion

The UK Chile Association Agreement is an important step in strengthening the trade relationship between the UK and Chile. By removing barriers to trade and increasing market access, it is likely to benefit businesses and consumers in both countries. Although the agreement is a continuity agreement, it provides certainty and stability for UK businesses trading with Chile after Brexit. As the UK government continues to negotiate new trade agreements, it is likely that we will see similar agreements with other countries in the region in the future.