As the world continues to become more interconnected, trade agreements between nations are becoming increasingly important. A recent example of this is the trade agreement between the United States and Chile.
The U.S.-Chile Free Trade Agreement was signed in 2003 and went into effect in 2004. The agreement was the first of its kind between the United States and a South American nation.
One of the main objectives of the agreement was to eliminate barriers to trade between the two countries. This meant reducing or eliminating tariffs on goods and services, making it easier for businesses in both nations to sell their products in each other`s markets.
Since the implementation of the agreement, trade between the United States and Chile has increased significantly. In 2019, the United States exported over $8 billion worth of goods to Chile, while importing over $15 billion worth of goods from the country.
The agreement has also had a positive impact on job creation in both countries. According to the U.S. Chamber of Commerce, the agreement has created over 300,000 jobs in the United States alone.
One sector that has benefited greatly from the agreement is agriculture. Prior to the agreement, Chilean agricultural products faced high tariffs when being imported into the United States. With the elimination of these tariffs, Chilean fruits and vegetables are now more readily available in the United States, providing American consumers with access to a wider range of fresh produce.
The agreement has also opened up opportunities for American businesses in Chile. The reduction or elimination of tariffs has made it more cost-effective for American companies to export their goods to Chile. This has led to an increase in American exports to the country, creating more jobs and economic growth in the United States.
Overall, the U.S.-Chile Free Trade Agreement has been a success, benefiting both nations in terms of increased trade, job creation, and economic growth. As the world continues to globalize, trade agreements like this one will become increasingly important in facilitating commerce between nations.