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Overview
Over the past 30 years, Chile has sought to improve its infrastructure through major projects, including airport terminals, reservoirs, hospitals and highways. Operating under a concession agreement system, 103 projects have been awarded with 74 currently in force and totalling approximately $25.5 billion in committed investment.
Chile has been prominent in the Latin American region in pioneering Public-Private Associations (PPAs) and incentives, becoming a stable and attractive ecosystem for investment. As of 2023, multinationals from 16 countries are operating in Chilean industries.
A push for modernisation, both building new and replacing old, to support economic growth has led to a growth in demand for high quality infrastructure services. Services such as data collection and analysis, programme and project management, and consulting have been important aspects of collaborative and sub-tenders.
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.
Services
The UK joining CPTPP brings significant benefits for the UK services sector including legal guarantees on using electronic payment card services, on the supply of insurance by postal insurance entities and cross-border portfolio management services, all of which go beyond existing commitments under the World Trade Organization (WTO). There are also a far broader range of commitments and benefits under CPTPP which enable UK financial services providers to do business in and with Chile with even greater confidence. Under CPTPP, UK investors will be treated the same as domestic investors when disposing of financial institutions or investing in financial institutions in Chile.
Procurement
Government procurement allows UK businesses to sell goods or services to foreign governments and public bodies at the central and local 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
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.
Ease of business travel
Within CPTPP, Chile provides access for the following categories of businesspersons:
- Business Visitors
- Intra-Corporate Transferees
- Investors
- Independent Professionals and Technicians
- Contractual Service Suppliers
In addition, for all categories of businesspersons, 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 businesspersons. 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.
Find out more about temporary entry in Chile.
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.
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.