Chile is one of the few countries in the world that has free trade agreements with every NAFTA member. But how did this small South American country become so closely associated with NAFTA?
To answer this question, we need to understand the history of Chile’s trade relations with North America. Chile has been interested in expanding its trade partnerships since the 1970s. In 1994, shortly after NAFTA was established, the United States and Chile signed a bilateral free trade agreement, which was the first agreement of its kind between the US and a South American country.
Following this agreement, Chile continued to pursue free trade agreements with other countries in the region, including Mexico and Canada. In 2006, Chile signed a free trade agreement with Mexico, which was the first time a Latin American country had signed a free trade agreement with another country outside of its own region. This agreement strengthened trade relations between the two countries and also helped to reduce barriers to trade.
In 2017, Chile and Canada signed a modernized free trade agreement which updated the original agreement made in 1997. This new agreement expanded the scope of the original agreement to include areas such as e-commerce, environmental protection, and labor rights.
Chile’s free trade agreements with NAFTA members have been beneficial for all parties involved. The agreements have helped to increase trade and investment between the countries, while also reducing barriers to trade. The agreements have also helped to promote economic growth and development in Chile.
In conclusion, Chile’s close association with NAFTA is largely due to its pursuit of free trade agreements with North American countries. These agreements have been successful in increasing trade and investment between Chile and the NAFTA members, and have helped to promote economic growth and development in the region.