Australia-Chile Free Trade Agreement

Chile market snapshot

  • GDP:US$248.4 billion (2011)
  • GDP per capita:GDP per capita: US$14,403 (2011)
  • GDP growth:5.9 per cent (2011)
  • Population:17.2 million (2011)
  • Trade with Australia:AU$2.1 billion (2011-12)

About the Australia-Chile Free Trade Agreement

The Australia-Chile Free Trade Agreement entered into force on 6 March 2009. It was Australia's fifth FTA and the first with a Latin American country.

The FTA covers goods, services and investment. By 2015, all tariffs will be eliminated except sugar, which retains a tariff of six per cent for Australian exports to Chile. Since its entry into force there has been a significant increase in Australian companies operating in Chile and expanding their business in Latin America more broadly.

Then Minister for Foreign Affairs, Stephen Smith and his Chilean counterpart, Alejandro Foxley, signed the Australia-Chile FTA in Canberra on 30 July 2008. The text of the Agreement was tabled in the Australian Parliament on 17 June 2008.

Key interests and benefits

  • Elimination of tariffs on all existing merchandise trade by 2015
  • National treatment for Australian goods, services and suppliers in the Chilean market for procurements above agreed value thresholds.
  • Locks in both sides' liberal services and investment regimes.
  • Locks in both sides' high standards of IP protection for patents, trademarks, geographical indications and copyright.

Map of Chile - quick facts

Map of Chile

Escondida

The world's largest copper producer. Its mine is 57.5 per cent owned by BHP Billiton and 30 per cent owned by Rio Tinto.

Santiago de Chile

The capital and largest city in Chile. It is home to the largest concentration of Australian businesses in Latin America.

Chile

During the Australian Gold Rush in the 1880s Chile exported wheat to help feed Australia's rapidly growing population.

News

Government Procurement

New Government Procurement thresholds became effective from 1 January 2012

ANNEX 15-A

Notification of Adjusted Threshold Values

Section 1: Central Government Entities

  1. This Chapter applies to central government entities listed in each Party’s Schedule to this Section where the value of the procurement is estimated, in accordance with Article 15.5, to equal or exceed the thresholds specified below:
  2. The monetary thresholds set out in paragraph 1 shall be adjusted in accordance with Section 8 of this Annex
(a) For the procurement of goods and services, adjusted thresholds as of 1 January 2012
Central Government Entities (Section 1) AUD$ 80,000 CLP 38,569,000
Sub-Central Government Entities (Section 2) AUD$573,000 CLP 274,730,000
Other Covered Entities (Section 3) AUD$402,000 CLP 192,844,000
*(b) For the procurement of construction services (all entities), adjusted thresholds as of 1 January 2012
Central Government Entities (Section 1) 9,570,000 CLP 3,870,613,000
Sub-Central Government Entities (Section 2) 9,570,000 CLP 3,870,613,000
Other Covered Entities (Section 3) 9,570,000 CLP 3,870,613,000

* Note: the Australian dollar value of procurement of construction services will remain at the 2010 threshold level until advised otherwise.

The next adjustment of the threshold values will be made in two years and become effective on January 1, 2014.

Australia-Chile FTA comes into force - 5 March 2009

The FTA eliminates immediately Chile's tariffs on almost 92 per cent of tariff lines covering 97 per cent of goods currently traded.

This includes Australian exports of coal, meat, wine and key dairy products. Tariffs on all existing merchandise trade will be eliminated by 2015.

Reflecting the Government's increasing focus on helping services suppliers, the FTA includes commitments by Chile to maintain an open and non-discriminatory market for Australian services, including in important sectors for Australia such as education, professional services, mining, engineering, management consulting and financial services.

Chile is Australia's third largest trading partner in Latin America and there are approximately 120 Australian companies actively trading with Chile.

Media release

For business

The Australian Trade Commission’s (Austrade) AClFTA website has further information about the agreement.

For more information on doing business in Chile and about specific export opportunities, go to the Austrade website. As well as country-specific information, the Austrade website also has a database that can be searched by industry.

A key Chilean implementing agency for the FTA is the General Directorate of International Economic Affairs in the Chilean Ministry of Foreign Affairs (known as DIRECON).

Information from DIRECON on the Australia-Chile FTA

Australian exporters seeking to access new opportunities under the Australia-Chile FTA may wish to obtain more information on rules of origin and other requirements from the Australian Customs Service.

Resources

Contact us

Requests for further information and advice should be directed to:

South America and COALAR Section
Americas and Africa Division
Department of Foreign Affairs and Trade

  • Phone: (02) 6261 3236
  • Fax: (02) 6261 3629