Upon entry into force of the U.S.-Chile Free Trade Agreement (FTA) in 2004, 80 percent of U.S. consumer and industrial goods exports to Chile immediately became duty free. Tariffs on the remaining products have been phased out, with 100% of products duty free as of January 1, 2015. To be eligible for tariff-free treatment under the FTA, products must meet the relevant rules of origin.
The FTA also provides favorable access for U.S. service suppliers and guarantees of protection to U.S. investors and U.S. copyrights, trademarks and patents registered in Chile. In addition, Chile has opened up significant government procurements to U.S. bidders.
Chile’s open economy and strong democratic institutions make it one of the most stable countries for doing business in the region. The U.S.-Chile FTA also provides a framework that makes Chile an ever better place to do business.
U.S. goods exports to Chile increased 513 percent in the 11 years since the FTA went into effect, from $2.7 billion in 2003 to $16.6 billion in 2014. In 2014, Chile's economy grew by 1.8% and its inflation rate rose to 4.4%.
Principal U.S. exports to Chile in 2014 were mineral fuel and oil, machinery and parts, aircraft and parts, vehicles, and electrical machinery. U.S. exports of services to Chile have also grown substantially, reaching over $3.6 billion in 2013.