U.S.-Chile Free Trade Agreement

The U.S.-Chile FTA was signed into law by President George W. Bush on September 3, 2003, and came into force on January 1, 2004.  Alongside the U.S.-Singapore FTA, it is the first commercially significant free trade agreement entered into by the United States since the North American Free Trade Agreement in 1994, and the U.S.-Chile agreement is arguably the most comprehensive now in force.  The U.S. Chamber led the private sector effort to secure Congressional approval of the U.S-Chile FTA in a collaborative effort with the 400-member U.S.-Chile Free Trade Coalition, for which the Chamber served as Secretariat.  The multi-faceted campaign to secure the FTA’s approval included hundreds of face-to-face meetings with members of Congress, publication of a unique “Faces of Trade with Chile” book highlighting small businesses already benefiting from trade with Chile, and events in key cities around the country to highlight opportunities created by the agreement.

The FTA presents significant benefits for workers, farmers, consumers and businesses in both countries, as witnessed by official statistics showing double-digit growth in two-way trade in the first months of 2004.  In addition, the FTA sends two important signals to other Latin American nations.  First, it demonstrates that the United States still has the political will to enter into FTAs with its Latin American neighbors, lending support for current bilateral, regional, and global trade negotiations. Second, the FTA will demonstrate that the United States favors nations that embrace free-market reforms, as Chile has done in bold and creative ways, by offering them closer commercial ties.

 Contributions on the U.S.-Chile FTA by the U.S. Chamber and AACCLA (PDF)