Only six months after Brazil and Chile committed themselves to make a new free trade deal happen, presidents Michel Temer and Sebastián Piñera inked an agreement at Santiago’s Palácio de la Moneda. “Few deals in the world have been initiated, negotiated and signed in such a short time span,” said Mr. Piñera. “This is the result of a natural convergence between our governments,” replied Mr. Temer. Now, the Brazil-Chile free trade deal only needs approval from both countries’ parliaments, which should come without much resistance.
Besides updating the terms of a 1996 trade deal, this new one remove tariffs from 17 key areas, including the elimination of international roaming charges between Brazilian and Chilean mobile lines for calls and data transmission (which will have an impact on tourism and business between the two countries) and the protection of origin seals such as “Brazilian Cachaça” or “Chilean Pisco.” The accord includes chapters on the temporary entry of people into both countries and e-commerce, which will facilitate the operation of Chilean digital products and services.