Canada and Chile Free Trade Agreement: An Overview

Canada and Chile have enjoyed a strong trade relationship for many years. In 1997, the two countries solidified their partnership by entering into a free trade agreement (FTA), which has since been updated to reflect changing economic conditions. The Canada-Chile FTA is a comprehensive agreement that covers a wide range of sectors, including goods, services, and investments.

Benefits of the Canada-Chile FTA

The Canada-Chile FTA has been a boon for both countries. Since the agreement was first signed, bilateral trade has increased significantly. In 2019, Canada’s exports to Chile were worth over CAD 1.1 billion, while imports from Chile totaled CAD 2.3 billion. Both countries have benefited from increased access to each other’s markets, as well as greater certainty and predictability in trade relations.

The FTA has also helped to create jobs and spur economic growth. By eliminating tariffs and other trade barriers, businesses in both countries have been able to expand their operations and increase their competitiveness. This has led to the creation of new jobs and the growth of existing businesses.

Key Provisions of the Canada-Chile FTA

The Canada-Chile FTA covers a wide range of sectors, including agriculture, energy, forestry, and mining. Some of the key provisions of the agreement include:

1. Tariff Elimination: The FTA eliminates tariffs on the vast majority of traded goods between Canada and Chile. Some sensitive products, such as certain agricultural goods, remain subject to tariffs, but these are gradually being phased out.

2. Rules of Origin: To qualify for preferential treatment under the FTA, goods must meet certain rules of origin. These rules specify the percentage of local content or value added that a product must have to be considered as originating from one of the two countries.

3. Services and Investment: The FTA provides for increased access to each other’s markets for services and investment. This includes provisions on market access, national treatment, and most-favored nation treatment.

4. Intellectual Property: The FTA includes provisions on intellectual property rights, including patents, trademarks, and copyrights. It provides for protection and enforcement of these rights in each country.

5. Dispute Settlement: The FTA contains provisions for settling disputes between the two countries. These provisions include a consultative process, mediation, and binding arbitration.


The Canada-Chile FTA has been a significant success story for both countries. By eliminating trade barriers and increasing access to each other’s markets, the FTA has helped to boost trade, create jobs, and stimulate economic growth. As both countries continue to look for opportunities to expand their trade relationships, the Canada-Chile FTA will undoubtedly play an important role in their future economic success.