Course summary United States - Chile Free Trade Agreement (FTA):
US Free Trade Agreements
The United States-Chile FTA eliminates tariffs and opens markets,
reduces barriers for trade in services, provides protection for intellectual
property, ensures regulatory transparency, guarantees nondiscrimination in the
trade of digital products, commits the Parties to maintain competition laws that
prohibit anticompetitive business conduct, and requires effective labor and
environmental enforcement.
The United States-Chile Free Trade Agreement (FTA) entered into force on
January 1, 2004.
More than 85% of bilateral trade in consumer and industrial products
becomes duty-free immediately upon entry into force of the Agreement,
with most remaining tariffs eliminated within four years.
Many agricultural products received tariff free access upon
implementation. Three-quarters of U.S. agriculture goods exported to Chile were
duty free by 2008 and full agricultural liberalization will occur by 2016.
In the seven years since the U.S.-Chile FTA went into effect, U.S.
exports to Chile increased by 300 percent, growing from $2.7 billion in 2003
to $10.9 billion in 2010. Principal U.S. exports to Chile in 2010 were
machinery, mineral fuel, oil, vehicles, electrical machinery, and plastic. U.S.
exports of services to Chile have also grown substantially, reaching over $2
billion in 2009.
In 2010, bilateral trade between the United States and Chile reached US$
17.9 billion, an over 150% increase over bilateral trade levels before the
U.S.-Chile FTA took effect. U.S. exports to Chile in 2010 reached US$ 10.9
billion while imports from Chile reached US$ 7 billion.
- Chile was the United States' 24th largest goods export
market in 2010.
- Chile was the United States' 38th largest supplier of goods imports in 2010
Example of the course United States - Chile Free Trade
Agreement (FTA):
Master in International Business for US Students
The United States remains the single largest direct investor in Chile,
representing 24.2% of all net foreign direct investment, from 1974 to 2010.
Spain follows closely with 20.8%, and Canada is third at 18.5%. U.S.
foreign direct investment (FDI) in Chile (stock) was $22.6 billion in 2009
(latest data available), a 37.8% increase from 2008. The agreement will
establish a secure, predictable legal framework for U.S. investors operating in
Chile.
The FTA employs product-specific rules of origin similar to those
contained in the NAFTA.
The commitments in services cover both cross-border supply of services (such as
services supplied through electronic means, or through the travel of nationals)
and the right to invest and establish a local services presence.
Protection of copyrights, patents, trademarks and trade secrets is
state-of-the-art, going farther than previous free-trade agreements.
Source: The Office of the United States Trade Representative (USTR)
EENI International Business
Course learning materials: 
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