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Overview
Chile has shown a strong commitment towards green hydrogen and overall renewable energy development by launching a national strategy in 2020 that included goals such as achieving 25GW of electrolysis and annual export levels of USD 2.5 billion by 2030. These measures are aligned with meeting the commitment of reaching carbon neutrality by 2050, as shown in its Nationally Determined Contribution in 2020 and the Climate Change Framework Law in 2022.
Chile has the opportunity to offer green hydrogen at one of the most competitive prices worldwide, primarily due to the abundance of renewable energy resources, having the highest solar radiation on the planet in the north and high-speed winds in the south. This level of renewable natural sources represents a fundamental pillar for the development of green hydrogen production, positioning Chile as a country with great market appeal for projects related to clean energy transition.
A transition to clean energy underpins the government’s policies across numerous other sectors. For example, it aims to have all renewable powered public transport by 2040. It already prides itself on its network of electric buses, claiming to have more than anywhere outside of China. The government is developing its Decarbonisation Plan (for example, closing/converting coal-fired power plants) to generate green jobs, investment and community development in an environmentally sustainable way.
A significant challenge faced by Chile relates to energy storage, as well as a lack of transmission lines. We often hear from stakeholders that permitting required to develop renewable energy projects presents a challenge to doing business here, but a new Chilean law (the Energy Transition Law) seeks to support all the permits for the construction of new transmission infrastructure projects and to promote more investment in storage projects.
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.
Investment
UK and Chilean investors benefit from increased transparency and simplification of investment administration.
The UK has had huge success in attracting foreign direct investment in the offshore wind sector, contributing to the delivery of our world-leading ambitions, and securing our energy supply.
Find more detail on the investment provisions and how they can help businesses.
Tariff-free energy products
Many energy products, such as nuclear reactor parts and wind turbines, receive a 0% Most Favoured Nation (MFN) tariff duty. When using MFN tariff duties, there is no need for businesses to prove their product is originating from the UK. Please visit the check duties and customs procedures tool to find available tariffs for specific products.
The UK and Chile have committed to making trade administration documents, such as customs forms, available in electronic form and to accept electronic submissions of those documents. Paperless trading will reduce costs for UK technology businesses and will improve efficiency and transparency when exporting energy-related products to Chile.
The UK’s commitment to paperless trading was reinforced through the introduction of the Electronic Trade Documents Act in 2023, granting electronic trade documents the same legal status as paper trade documents. Visit GOV.UK to find out more about the Electronic Trade Documents Act.
Digital products are also free from import tariffs. This includes apps, software and other electronic products traded between the UK and Chile. For instance, software to monitor energy efficiency systems is tariff-free to export.
Find more information on tariffs and moving goods through customs.
If you are importing goods from Chile, you can use the Trade Tariff Look up tool on GOV.UK to find the current list of goods and duty rates. There is also a step by step guide on how to import on GOV.UK.
Electronic contracts and data
Data for business purposes can flow freely between the UK and Chile. Provided high personal data protection standards are upheld, you may collect, process and transfer data between the 2 countries with minimal red tape. For example, data on monitoring energy production in Chile can be transferred to the UK for analysis.
Both countries have agreed against unjustified data localisation, allowing you to store their data in either country. This prevents difficulties in arranging for local data hosting and saves costs on buying local storage.
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
Find further information on procurement.
Services
You will be treated on a level playing field to Chilean businesses (for sectors that are within scope), meaning you will operate under the same rules of Chilean competitors. You are not required to have a business presence, such as a subsidiary or branch office, in Chile to provide services. This would allow, for example, you to provide consultancy services on an energy project in Chile from the UK, without being excluded for being UK-based.
For further details please consult the relevant FTA chapters. For CPTPP, please see Chapter 10: Cross-border Trade in Services and Chapter 11: Financial Services in the agreement text (please note that this link directs you to the New Zealand Foreign Affairs and Trade Ministry which is responsible for the CPTPP agreement text). For the UK-Chile agreement please see Title III Trade in Services and Establishment.
For the UK-Chile FTA, Chile’s market access schedule can be found in Annexes VII (Schedule of Specific Commitments on Services), VIII (Schedule of Specific Commitments on Financial Services), and IX (Authorities Responsible for Financial Services).
Easier 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.
Find out more about temporary entry in Chile.
Product regulation
Products sold in Chile must meet Chilean product regulation requirements, regardless of whether they are exported to Chile under preferential tariff rates or not. While products will normally need to be shipped to Chile to undergo testing, UK based conformity assessment bodies are eligible to apply to carry out conformity assessments against Chilean regulations. Having testing carried out in the UK may save businesses time and money, by avoiding additional transportation costs.
UK manufacturers of energy products may be able to have their products tested against Chilean regulations in the UK in the future, under the shared commitments under CPTPP. UK conformity assessment bodies can apply for accreditation from the relevant Chilean accreditation body or government body, to carry out conformity assessments in the UK against Chilean regulations.
However, for those products requiring testing prior to market entry, the Instituto Nacional de Normalización (INN) maintains a complete list of accredited testing organizations (Directorio de Acreditados) – websites only in Spanish.
Chile’s government bulletin is the Diario Oficial (website only in Spanish). Once regulations are approved by the INN and the relevant Ministries and are officially accepted by Chile’s central government, they are published in the Diario Oficial. Only approved regulations are published. Proposed regulations are not published in the Diario Oficial.
Find further information on product regulation and testing.
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.