No new trade agreement can begin until the transition is over. Trade agreements also aim to remove quotas – limiting the amount of goods that can be traded. The agreement avoids unnecessary tariffs that ultimately save consumers money. Without this agreement, tariffs on Chilean wine arriving in the UK would cost the industry about $9.2 million. A free trade agreement aims to promote trade – usually with goods, but also sometimes with services – by making it cheaper. This is often achieved by reducing or eliminating so-called tariffs – taxes or taxes on cross-border trade. In addition, this means that cooperation between the United Kingdom and Chile will continue. Trade in goods and services between the United Kingdom and Chile has increased by an average of 9% per year since the provisional implementation of the agreement in 2003. The UK`s exports to Chile have increased by an average of 16% per year since the beginning of the agreement, with a total export increase of 351%. Any existing EU agreement, which will not be rushed, will end on 31 December and future trade will take place on WTO terms until an agreement is reached. Chilean fruits, nuts and especially wines are a very important part of this trade, as British customers have bought more than 100 million bottles of Chilean wine worth more than $700 million in the last 12 months. Similarly, trade agreements can be insecure as a result of legislative or governmental changes, as businesses are marginal.
The effects of new or amended trade agreements must be carefully assessed. For this reason, Chile remains a very interesting goal for your investment. If you need personalized business assistance to enter the Chilean market, please contact one of our local experts at the Biz Latin Hub. We offer back-office and market entry solutions to ensure your commercial success in new markets. Contact us here for more information. Talks between the EU and the UK are under way to reach a post-Brexit free trade agreement before the end of the year. Good news, but we need the same thing with the United States, Argentina, South Africa and the biggest of them – Europe! The Chilean and British wine industries can benefit from this agreement and their importance in each other`s wine markets will increase. The Wine and Spirit Trade Association has confirmed that wine exports contribute nearly $19 billion to the UK economy, while supporting some 190,000 jobs. To date, more than 20 of these existing agreements, covering 50 countries or territories, have been shaken up with the exception of the I.V. and will begin on 1 January 2021. Based on 2018 figures, this represents about 8% of total trade in the UK.
But it is clear that new agreements with some countries will not be ready in time. As the UK (UK) prepares to leave the European Union (EU), all EU trade agreements under the EU will no longer exist. The UK is now committed to new agreements to maintain the diversification of its economy. One country that has recently collaborated with the United Kingdom is Chile, known as the Trade Continuation Agreement. Cooperation between these two countries is powerful in their own rights and offers positive trade benefits to businesses. Find out what the UK trade deal with Chile means for businesses and potential investors. It can therefore be concluded that the conclusion of the agreement implies not only basic trade based on import taxes, but also easier access to the countries of other countries.