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Brazil and Chile want commercial approach and ratify agreement.

Brazil and Chile promise to intensify rapprochement between Mercosur (Brazil, Argentina, Paraguay and Uruguay, as Venezuela is temporarily suspended) and the Pacific Alliance (Chile, Colombia, Costa Rica, Mexico and Peru) for a free trade area . From July, Brazil will hold the pro tempore presidency of Mercosur and Chile will lead the Pacific Alliance.

In Santiago, on the last day of their visit to Chile, President Jair Bolsonaro and Chilean President Sebastián Piñera ratified the terms of the free trade agreement between the two trade blocs.

The governments of Brazil and Chile intend to build a road corridor to link the Midwest region and the seaports in northern Chile, “passing the bridge to be built between Porto Murtinho and Carmelo Peralta, the Paraguayan Chaco and the Argentine northwest” , as detailed in joint note.

Partnership

Bolsonaro and Piñera made a joint statement in which they advocate for trade and joint action at the launch of the South American Forum for Progress (Prosul), created to replace Unasur. “We are seeing in South America the displacement of the ideological issue,” said Bolsonaro, referring to the more pragmatic action for the integration of the continent.

“Prosul can only participate in countries that have a commitment to democracy, freedom and human rights,” Piñera said in reference to Venezuela whose government of Nicolás Maduro is considered illegitimate by Chile and about 50 nations, including the Brazil.

Data

In his speech, Piñera made a brief history about the proximity between Chile and Brazil and reinforced economic relations. According to him, “Brazil is Chile’s main trading partner in Latin America” and it is also “Chile’s main destination for investments abroad, with over US $ 35 billion”.

According to the Ministry of Economy’s trade balance data, in 2018, Brazil and Chile had a trade flow (sum of exports and imports) of US $ 1.3 billion. Last year Brazil had a trade surplus of 278 million.

One-third of Brazil’s exports to Chile were crude petroleum oils, but the agenda includes beef, passenger cars, cargo vehicles, chassis and tractors. Brazil imports from Chile copper and salmon, especially.

 

 

Source: GGN Journal

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