Chile and UK seal trade continuity agreement as Brexit looms

Chile is the first country to sign a post-Brexit deal with the UK. On Wednesday 30th January, representatives of the two countries met in Santiago to seal a bilateral trade continuity agreement to protect Chilean exports from the impacts of Brexit. The Chilean Government press release states that the agreement mimics the conditions of the current trade deal that Chile has with the EU, this finding a positive solution to a potentially highly complex situation. The agreement also includes a series of instruments to amplify and modernize its coverage.

“This new agreement contains a general evolutionary clause to ensure that every two years discussions will take place on how the trade relationship can be improved,” said Rodrigo Yáñez, director general of the Chilean Foreign Relations Ministry.

Trade between the UK and Chile was worth US$1.36 billion in 2018 – up 19% from the previous year. Chilean exports climbed 17%, mainly driven by fruit, wine and processed food.