Canada-Chile Free Trade Agreement
Signed on December 5, 1996, and implemented on July 5, 1997, the Canada-Chile Free Trade Agreement (CCFTA) is a comprehensive agreement that covers trade in goods and services, as well as the bilateral investment relationship. The CCFTA was Canada’s first Free Trade Agreement (FTA) with a South American country, while for Chile it was the first comprehensive FTA concluded with any country.
The CCFTA is the cornerstone of Canada’s strong and growing trade and investment relationship with Chile. Since its launch in 1997, the CCFTA has brought benefits to both countries. Two-way merchandise trade has more than tripled, reaching almost $2.5 billion in 2012. Additionally, a study on the Economic Impact of the Canada-Chile Free Trade Agreement released in May 2013 concluded that Canada’s overall economic welfare gains from this agreement were approximately $250 million annually.
Efforts to modernize and broaden the CCFTA are ongoing. In 2008, a new government procurement chapter came into force, and in 2010, Canada and Chile signed a Note of Interpretation on Indirect Expropriation. On September 30, 2013, an agreement to amend the CCFTA came into force to include a financial services chapter and update the chapters on government procurement, dispute settlement and custom procedures. Work is ongoing to update the rules of origin in the Agreement and both sides have agreed to explore the possibility of further broadening the CCFTA.
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