Chile Tariffs

1290 WordsMar 27, 20156 Pages
Tariffs in Chile From 1930 through 1960 the Chilean economy was highly protected with import and export quotas, import permits, tariffs, noninterest-bearing import deposits and multiple exchange rates imposed by the government. The Central Bank negotiated, with each importer, which exchange rate to apply to each transaction. Moreover, imports included only intermediate and capital goods and a few essential consumer goods. Guidelines to approve products from other countries were followed and several goods were prohibited for importation. Because of this situation, there were three attempts to eliminate tariffs and all restrictions. By 1974, changes started taking place. Trade liberalization allowed Chile to develop where they had a…show more content…
Also, Chile has a Trans-Pacific Agreement known as P-4 with New Zealand, Singapore and Brunei Darussalam. The Trans-Pacific Strategic Economic Partnership Agreement, also named P4 or TPP, is a trade agreement between Chile, Brunei, New Zealand and Singapore signed in 2005 and has been in force since 2006. It was designed to liberalize trade between the economies of the Asia-Pacific region. However, since 2010 negotiations have taken place to expand the original trade union to incorporate eight other countries including Mexico, USA, Canada and Australia. Chile’s economy has benefit from trading with countries in the TPP. In 2012, almost $16 billion of Chile’s overall $79 billion worth exports went to TPP countries. At the same time, Chile imported $25 billion in return. Since 2003, Chile’s trade with TPP nations has grown by 16% each year. Chile and USA entered into the U.S.-Chile Free Trade Agreements on January 1, 2004. This agreement eliminates tariffs and open markets, reduces barriers for trade in services, provides protection for intellectual property, ensures regulatory transparency, guarantees nondiscrimination in the trade of digital products, commits both parties to maintain competition laws that prohibit anticompetitive business conduct and requires effective labor and environmental enforcement. Through duty elimination, the agreement allows U.S. textile and apparel exporters to
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