The Chile-U.S. FTA: success beyond expectations

It has been just over a year since the Chile-U.S. Free Trade Agreement (FTA) went into effect and by all accounts, its success has exceeded expectations.

The Chile-U.S. FTA has proven that open trade, clear rules and increased opportunities can enhance healthy and sustainable economic growth, reduce poverty and strengthen democratic institutions.

In terms of bilateral trade the figures show strong and balanced growth: Chilean exports to the United States grew 32 percent while U.S. exports to Chile rose 35 percent in 2004. The increase in U.S. exports to Chile in 2004 was stronger than most of Chile’s other trading partners, even those with which it has an FTA. Although Chile is a small market for the United States, this impressive growth in bilateral trade indicates that U.S. businesses and workers are increasing their share of the Chilean market.

Trade figures for the first quarter of 2005 reconfirm the healthy nature of our trade relationship. Between January and March U.S. exports to Chile grew at a rate of 54 percent, while Chilean exports grew by 27 percent.