Jump to:
Overview
Chile has a solid financial system which has shown resilience to recent economic shocks. It is characterised by its depth, accessibility, and efficiency and sits between developing and developed on the Financial Development Index Database.
Total UK exports in services to Chile in the 4 quarters up to the end of Quarter 4 2023 were valued at £714 million, an increase of 22.9%. The total UK outward direct investment was valued at £1.3 billion in 2021. Financial services have emerged as a significant component of the UK's exports to Chile, reflecting the deepening collaboration between the 2 nations in this sector.
Regulated by the Financial Market Commission (FMC), Chile’s financial landscape boasts a robust regulatory framework conducive to innovation and growth. The FMC is responsible for ensuring that supervised persons or entities comply with laws, regulations, bylaws, and other provisions that govern them from their inception to their winding-up, ensuring market integrity and investor confidence.
Trade agreements with Chile
The UK has 2 Free Trade Agreements (FTAs) with Chile:
- the UK-Chile Association Agreement, henceforth referred to as the UK-Chile FTA, which entered into force on 1 January 2021
- the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a trade agreement including 12 countries (Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the UK and Vietnam) which entered into force between the UK and Chile on 15 December 2024
The UK-Chile FTA should be read in conjunction with the EU-Chile Association Agreement because the UK-Chile FTA incorporates provisions of the EU-Chile Association Agreement. The following Parliamentary Report provides information about significant differences between the two.
The UK-Chile FTA will remain in force alongside CPTPP. At times, you will need to specify which agreement you choose to trade under (notably when applying rules of origin), but benefits from either agreement will mostly apply automatically. Our guides attempt to highlight where businesses may need to make an explicit decision.
CPTPP entry into force and ratification
As of 24 December 2024, CPTPP is in force between the UK and:
- Australia
- Brunei
- Chile
- Japan
- Malaysia
- New Zealand
- Peru
- Singapore
- Vietnam
This means that the UK can access CPTPP provisions with said countries.
The following countries have not yet ratified the terms of the UK’s accession:
Canada and Mexico.
This means that the UK cannot yet access CPTPP provisions with those countries.
This guidance will be updated following each of the remaining countries’ ratification of the terms of the UK’s accession to CPTPP and will include when CPTPP will enter in force between the UK and the relevant remaining country.
Opportunities for UK financial services suppliers in Chile
Pension funds: assets of pension funds as a percentage of Chilean GDP amount to just over 80% as of 2019, more the 50% of which is invested in developed countries. There is opportunity for UK asset managers to work with Chilean pension funds in a similar fashion to BP in Brazil.
FinTech: in 2023, a FinTech Law was approved (expected implementation July 2024) which puts Chile in first position in Latin America for regulatory support and modernity when it comes to open finance. Due to the new regulation, consolidated UK businesses could be at an advantage when entering the market to meeting increasing demand from banks and insurance companies to incorporate fintech products and solutions.
Insurance companies: across several core sectors (renewable energy, agriculture, healthcare), Chile has experienced growth in demand. For example, more than 500,000 people have switched from private healthcare providers to the public healthcare system in the past 3 years.
Sustainable finance: Chile has pioneered the way for sustainable finance in Latin America, releasing the first sovereign green bonds (GBs) in the region and in 2023 an additional $44.5 million ESG bonds were released. Opportunities lie in:
- diversification of investment portfolios
- tech solutions for monitoring and reporting environmental impacts of projects financed by GBs
- efficiency enhancing green technologies
- UK-Chilean partnerships on green projects, such as technology transfer and local capacity building
- expertise in certification and standardisation
Financial Services
CPTPP includes a standalone financial services chapter. Various commitments in the chapter go beyond the General Agreement on Trade in Services (GATS) and create the conditions, across regulatory regimes, for financial services firms to have confidence when entering and operating in CPTPP Parties’ markets.
The chapter ensures that firms can provide new products and innovative services to CPTPP markets on a level playing field with domestic firms. It commits Parties to promoting regulatory transparency in financial services including a commitment for Parties to make decisions regarding the authorisation of firms to supply a financial service within a period of 120 days of a completed application. CPTPP provisions also help encourage more dynamic business models, such as provisions on the performance of back-office functions, avoiding restrictions on residency requirements, and measures that help liberalise cross-border trade including to protect the free flow of financial information.
CPTPP also allows portfolio managers, in which the UK has historic strengths, to manage funds across the world from the UK. The UK’s position as a leading global asset management hub supports the wider financial services ecosystem by encouraging other sectors such as trading and investment banking to conduct their activities in the UK.
Investment
UK and Chilean investors benefit from increased transparency and simplification of investment administration. A more detailed explanation on the investment provisions and how it can help businesses can be found in our investment explainer.
Ease of business travel
Within CPTPP, Chile provides access for the following categories of business persons:
- Business Visitors
- Intra-Corporate Transferees
- Investors
- Independent Professionals and Technicians
- Contractual Service Suppliers
In addition, for all categories of business persons, excluding Business Visitors, Chile will allow a family dependent (spouse, parent, or offspring) to enter Chile for the same length of time as the covered business persons. Accompanying dependents may also apply for the right to work while residing in Chile, subject to meeting the relevant requirements and approval by the Government of Chile.
Learn more about temporary entry in Chile.
Electronic contracts and trading digitally
As members of CPTPP, the UK and Chile have made commitments on trade conducted through digital means. These commitments can support UK businesses across the financial, professional and business services sector. CPTPP guarantees the use of electronic contracts, electronic signatures and authentication without fearing that they will be rejected purely because they are in electronic form. Businesses also have freedom in determining the appropriate methods for completing your transactions in electronic form.
Opportunities for digital trading
Electronic authentication and electronic signatures
Electronic signatures and electronic authentication increase trust in e-commerce by helping to verify that transactions, and the people behind them, are genuine. Strengthening the legal validity of electronic signatures provides greater confidence that transactions can be concluded through electronic means.
By using electronic signatures and/or electronic authentication, you can complete transactions in a matter of minutes regardless of where your counterpart is, reducing costs and simplifying processes.
CPTPP ensures that electronic signatures are considered valid by all CPTPP countries, and individuals and businesses can confidently use them.
However, CPTPP countries might impose specific criteria regarding electronic signatures, including some circumstances where electronic signatures are not accepted. You should check local regulations for more information.
You have the freedom to determine the best way of authenticating your transaction. However, for some transaction categories, there can be specific requirements.
Paperless trading
Paperless trading refers to the conduct of trade activities using electronic rather than paper documents. This reduces administrative costs and improves efficiency of processes, benefiting UK businesses across all sectors.
The UK and CPTPP countries are committed to facilitating the flow of trade activities using electronic trade documents.
CPTPP countries have committed to making trade administration documents available in electronic form and to accept electronic versions of those documents. This refers to documents which are required in connection with the import or export of a good and must be presented to customs authorities.
Beyond CPTPP, the UK also enables commercial trade documents that use English law to be accepted in electronic form. This includes documents such as bills of lading, promissory notes, and bills of exchange. This was enabled by the Electronic Trade Document Act.
This complements the commitments made on paperless trading related to trade administration documents required by the UK government or other CPTPP countries as part of the import-export process. Find more information about the UK’s Electronic Trade Documents Act.
Different countries are at different stages of legislating for paperless trading and trade digitalisation. The United Nations Economic and Social Commission for Asia and the Pacific has created an interactive Model Law on Electronic Records (MLETR) tracker where you can view different countries’ progress.
Procurement
Government procurement allows private UK businesses to sell goods or services to foreign governments and public bodies at the central and level.
The agreements the UK has with Chile provide further opportunities, ensuring systems for procurement are open, transparent and accessible. They work to:
- set out clear framework and timelines for procuring entities to award government contracts
- ensure procurement is done according to rules agreed by both countries
- provide schedules describing what goods and services are covered by the relevant agreement and are therefore subject to the agreed rules, known as Market Access Schedules
- to treat each other’s suppliers fairly when they are competing for contracts
Department for Business and Trade support
The Department for Business and Trade (DBT) helps businesses export, drives inward and outward investment, negotiates market access and trade agreements, and champions free trade. Helpful links, tools and services available from DBT and wider government include:
Export Support Service (ESS) team
Get support on how to do business abroad. You may also be eligible for 1-2-1 support from a local International Trade Adviser. Businesses in Wales can also access support from Business Wales.
Export Support Service – International Markets (ESS-IM)
DBT's overseas in-market export support service for SMEs with high-export potential. Our International Market Advisers provide tailored support and market introduction information to new and current UK exporters looking to enter or expand into new markets. The service may be accessed globally with International Markets teams in South Asia, China, the Middle East, Africa, Eastern Europe, North America and Latin America.
Sign up to access free training on how to grow your international sales.
Information on finance and insurance for UK exports.
Trade and investment factsheets
The latest statistics on trade and investment between the UK and individual overseas partners.
Overseas business risk profiles
Information for UK businesses on political, economic and security risks when trading overseas.
Advice and warnings about travel abroad, including entry requirements, safety and security, health risks and legal differences.
Check or report a trade barrier
If you encounter an issue when exporting to any country – report the issue and UK government officials will be able to assess the issue and consider the options we have open to addressing it as appropriate
Search for your specific product to find applicable tariffs for each market, explore rules of origin and step-by-step help on customs procedures
Check import duties and allows you to check the status of available tariff rate quotas
Useful resources
You can find more information about export opportunities, business culture and any existing trade barriers on our Chile market guide.
Prior to export, you must be aware of local regulations and import conditions in Chile that apply to your goods or services. This can include tax considerations, labour laws, intellectual property rules, labelling and packaging regulations, among others.
To seek further information related to local regulations, business culture, or to find a local lawyer, translator, importer or distributor, you can use the following contacts:
- DBT’s Export Support Service International Markets team
- get in touch with DBT at the local British Embassy
- get in touch with the British Chamber of Commerce in Chile
To see information on political, economic and security risks when trading with Chile, please see:
Note:
This guidance contains data as reported by the UK from the Office for National Statistics (ONS) data source for total trade: UK total trade data (seasonally adjusted). Users are advised to use UK-reported data where possible for consistency between partners. This data is subject to asymmetries, for example, the value of UK exports to Chile (reported by the UK) may not match the value of Chilean imports from the UK (reported by Chile). Data is in nominal terms, meaning no adjustment has been made to account for changes in inflation or exchange rate. The totals may not exactly match the sum of their parts due to rounding.