Proponents of the U.S.-Chile free trade agreement say the reduction of trade barriers resulting from the pact will lead to increased trade between the two countries. Developing countries, including Chile, have expressed two fundamental concerns about the inclusion of environmental and labour provisions in trade agreements: 1) that their sovereignty could be compromised if such agreements approve higher standards; and 2) that such provisions can be used to justify disguised protectionism. Proponents of free trade in the United States and other developed countries have expressed similar sentiments regarding the inclusion of environmental and labour provisions in trade agreements. From a trade strategy perspective, it has been suggested that a free trade agreement between the United States and Chile would support U.S. initiatives with the U.S. Free Trade Area (CETA) under negotiation, encouraging increased Support from Chile for U.S. issues and, perhaps, helping to define important negotiating parameters (e.g. B the work and environmental provisions) that could set a precedent. (2) The U.S.-Chile Free Trade Agreement was also proposed as an irrefutative argument for the passage of VPA legislation, which would send a signal to the U.S.
commitment to pursue and conclude trade agreements for Latin America and the rest of the world. The U.S.-Chile Free Trade Agreement came into force on January 1, 2004. The U.S.-Chile Free Trade Agreement eliminates tariffs and opens markets, reduces barriers to trade in services, protects intellectual property, ensures regulatory transparency, ensures non-discrimination in digital trade, requires parties to maintain competition laws that prohibit anti-competitive business practices, and requires effective labour and environmental enforcement. As of January 1, 2015, all goods from the United States will arrive in Chile duty-free. The trade data reflect Chile`s open and independent trade policy. Exports to the world increased by 89% in the eight years 1993-2001 (see Chart 1) and imports increased by 56%. Although Chile is not a full partner of the Andean Community or a full partner of Mercosur, its export growth has been the fastest intra-regional, evidence of Chile`s trade strategy, which combines unilateral reductions in customs and non-tariff barriers with aggressive efforts towards bilateral agreements. From 1993 to 2001, Chilean exports to Latin America increased by 126%, compared with 100% for the United States, 43% for Japan, 70% for Asia and 71% for the European Union. Chile`s trade with Canada indicates another interesting trend. Although the value of the export dollar is very low, it has increased by about 380%, a subject that many in the United States have not lost.