Editing Economy of Chile (section)

===Trade policy===

Chile is strongly committed to free trade and has welcomed large amounts of foreign investment. Chile has signed free trade agreements (FTAs) with a network of countries, including an FTA with the United States that was signed in 2003 and implemented in January 2004.<ref>{{cite web|url=http://www.ustr.gov/Trade_Agreements/Bilateral/Chile_FTA/Final_Texts/Section_Index.html |title=MAX - Unsupported Browser Warning |access-date=13 July 2013 |url-status=dead |archive-url=https://web.archive.org/web/20160328045456/https://ustr.gov/trade_agreements/bilateral/chile_fta/final_texts/section_index.html |archive-date=28 March 2016 }} USA–Chile FTA Final Text</ref>

Chile unilaterally lowered its across-the-board import tariff for all countries with which it does not have a trade agreement to 6% in 2003. Higher effective tariffs are charged only on imports of wheat, wheat flour, and sugar as a result of a system of import price bands. The price bands were ruled inconsistent with Chile's [[World Trade Organization]] (WTO) obligations in 2002, and the government has introduced legislation to modify them. Under the terms of the U.S.–Chile FTA, the price bands will be completely phased out for U.S. imports of wheat, wheat flour, and sugar within 12 years.<ref name="countrystudies"/>

Chile is a strong proponent of pressing ahead on negotiations for a [[Free Trade Area of the Americas]] (FTAA) and is active in the WTO's [[Doha Development Round|Doha round of negotiations]], principally through its membership in the [[G20 developing nations|G-20]] and [[Cairns Group]].<ref name="countrystudies"/>

Most imports are not subject to the full statutory tariff, due to the extensive preferences negotiated outside the multilateral system through Regional Trade Agreements (RTAs). By the last version of the World Trade Organization's Trade Policy Review (October 2009), Chile had signed 21 RTAs with 57 countries and the number has continued to rise in recent years<ref name="tpr">[http://www.wto.org/english/tratop_e/tpr_e/tp320_e.htm Trade Policy Review Chile], 2009, World Trade Organization.</ref>

More recently, Chile has also been an active participant of deeper plurilateral trade agreement negotiations. Notably, Chile is currently in talks with eleven other economies in the [[Trans-Pacific Partnership]] (TPP), a proposed agreement that would stem from the existing P-4 Agreement between Brunei, Chile, New Zealand and Singapore. Chile has signed some form of bilateral or plurilateral agreement with each of the parties at TPP, although with different degrees of integration.<ref>[http://www.direcon.gob.cl/acuerdos-comerciales/ Directorate of International Economic Relations website], Trade Agreements (in Spanish).</ref>

Chile is also a party in conversations to establish the [[Pacific Alliance]] along with Peru, Mexico and Colombia.<ref>[https://www.economist.com/blogs/americasview/2013/04/growing-pacific-alliance "The growing Pacific Alliance, Join the club" ''The Economist'', April 29, 2013].</ref>

====Foreign trade====
[[File:Antiguas reservas wine.jpg|thumb|Chile is the world's fifth largest [[Wine#Exporting countries|exporter of wine]] and the [[Wine#Production|eighth largest producer]].<ref>{{cite web|url=http://en.mercopress.com/2010/06/25/chile-ranks-fifth-globally-in-wine-exports-and-eighth-in-production|title=Chile ranks fifth globally in wine exports and eighth in production|work=[[Santiago Times]]}}</ref>]]
2006 was a record year for Chilean trade. Total trade registered a 31% increase over 2005. During 2006, exports of goods and services totaled US$58&nbsp;billion, an increase of 41%. This figure was somewhat distorted by the skyrocketing price of copper. In 2006, copper exports reached a historical high of US$33.3&nbsp;billion. Imports totaled US$35&nbsp;billion, an increase of 17% compared to the previous year. Chile thus recorded a positive trade balance of US$2.3&nbsp;billion in 2006.<ref name="countrystudies"/>

The main destinations for Chilean exports were the Americas (US$39&nbsp;billion), Asia (US$27.8&nbsp;billion) and Europe (US$22.2&nbsp;billion). Seen as shares of Chile's export markets, 42% of exports went to the Americas, 30% to Asia and 24% to Europe. Within Chile's diversified network of trade relationships, its most important partner remained the United States. Total trade with the U.S. was US$14.8&nbsp;billion in 2006. Since the U.S.–Chile Free Trade Agreement went into effect on 1 January 2004, U.S.–Chilean trade has increased by 154%. Internal Government of Chile figures show that even when factoring out inflation and the recent high price of copper, bilateral trade between the U.S. and Chile has grown over 60% since then.<ref name="countrystudies"/>

Total trade with Europe also grew in 2006, expanding by 42%. The Netherlands and Italy were Chile's main European trading partners. Total trade with Asia also grew significantly at nearly 31%. Trade with Korea and Japan grew significantly, but China remained Chile's most important trading partner in Asia. Chile's total trade with China reached U.S. $8.8&nbsp;billion in 2006, representing nearly 66% of the value of its trade relationship with Asia.<ref name="countrystudies"/>=

The growth of exports in 2006 was mainly caused by a strong increase in sales to the United States, the Netherlands, and Japan. These three markets alone accounted for an additional US$5.5&nbsp;billion worth of Chilean exports. Chilean exports to the United States totaled US$9.3&nbsp;billion, representing a 37.7% increase compared to 2005 (US$6.7&nbsp;billion). Exports to the European Union were US$15.4&nbsp;billion, a 63.7% increase compared to 2005 (US$9.4&nbsp;billion). Exports to Asia increased from US$15.2&nbsp;billion in 2005 to US$19.7&nbsp;billion in 2006, a 29.9% increase.<ref name="countrystudies"/>

During 2006, Chile imported US$26&nbsp;billion from the Americas, representing 54% of total imports, followed by Asia at 22%, and Europe at 16%. Mercosur members were the main suppliers of imports to Chile at US$9.1&nbsp;billion, followed by the United States with US$5.5&nbsp;billion and the European Union with US$5.2&nbsp;billion. From Asia, China was the most important exporter to Chile, with goods valued at US$3.6&nbsp;billion. Year-on-year growth in imports was especially strong from a number of countries – Ecuador (123.9%), Thailand (72.1%), Korea (52.6%), and China (36.9%).<ref name="countrystudies"/>

Chile's overall trade profile has traditionally been dependent upon copper exports. The state-owned firm CODELCO is the world's largest copper-producing company, with recorded copper reserves of 200 years. Chile has made an effort to expand nontraditional exports. The most important non-mineral exports are forestry and wood products, fresh fruit and processed food, fishmeal and seafood, and [[Chilean wine|wine]].<ref name="countrystudies"/>

====Trade agreements====
[[File:Chile FTA.png|thumb|Nations that have an FTA with Chile appear in dark blue, those that have not ratified a negotiated FTA in light blue, and those in FTA negotiations in purple. Chile is in red.]]
Over the last several years, Chile has signed FTAs with the European Union, South Korea, New Zealand, Singapore, Brunei, China, and Japan. It reached a partial trade agreement with India in 2005 and began negotiations for a full-fledged FTA with India in 2006. Chile conducted trade negotiations in 2007 with Australia, Malaysia, and Thailand, as well as with China to expand an existing agreement beyond just trade in goods. Chile concluded FTA negotiations with Australia and an expanded agreement with China in 2008. The members of the P4 (Chile, Singapore, New Zealand, and Brunei) also plan to conclude a chapter on finance and investment in 2008.<ref name="countrystudies"/>

Successive Chilean governments have actively pursued trade-liberalizing agreements. During the 1990s, Chile signed [[free trade agreement]]s (FTA) with Canada, Mexico, and Central America. Chile also concluded preferential trade agreements with Venezuela, Colombia, and Ecuador. An association agreement with Mercosur-Argentina, Brazil, Paraguay, and Uruguay-went into effect in October 1996. Continuing its export-oriented development strategy, Chile completed landmark free trade agreements in 2002 with the European Union and South Korea. Chile, as a member of the Asia-Pacific Economic Cooperation (APEC) organization, is seeking to boost commercial ties to Asian markets. To that end, it has signed trade agreements in recent years with New Zealand, Singapore, Brunei, India, China, and most recently Japan. In 2007, Chile held trade negotiations with Australia, Thailand, Malaysia, and China. In 2008, Chile hopes to conclude an FTA with Australia, and finalize an expanded agreement (covering trade in services and investment) with China. The P4 (Chile, Singapore, New Zealand, and Brunei) also plan to expand ties through adding a finance and investment chapter to the existing P4 agreement. Chile's trade talks with Malaysia and Thailand are also scheduled to continue in 2008.<ref name="countrystudies"/>

After two years of negotiations, the United States and Chile signed an agreement in June 2003 that will lead to completely duty-free bilateral trade within 12 years. The U.S.-Chile FTA entered into force 1 January 2004, following approval by the U.S. and Chilean congresses. The FTA has greatly expanded U.S.-Chilean trade ties, with total bilateral trade jumping by 154% during the FTA's first three years.<ref name="countrystudies"/> On 1 January 2014, Chile-Vietnam Free Trade Agreement officially took effect.<ref>{{cite web|url=http://wtocenter.vn/other-agreement/vietnam-chile-free-trade-agreement-vcfta|title=Vietnam-Chile Free Trade Agreement (VCFTA) – WTO and International trade Policies|website=wtocenter.vn|access-date=22 March 2018|archive-url=https://web.archive.org/web/20170920043903/http://wtocenter.vn/other-agreement/vietnam-chile-free-trade-agreement-vcfta|archive-date=20 September 2017|url-status=dead}}</ref>