Argentina and Chile Agree to Free Trade Agreement

Argentina and Chile Agree to Free Trade Agreement

With the decline of Mercosur, Argentina is looking westward towards its Pacific allies, as it signs a landmark free trade agreement with Chile.

It is a great day for free trade and free markets in the Cono Sur.

In December of 2018, the Argentine Congress gave final approval to the deal. Last week the Chilean Parliament did the same. Now, both countries must deal with some regulatory formalities, which is expected to take approximately 90 days, for the commercial treaty to be put into effect. Argentina and Chile formalized a Free Trade Agreement that promises to spearhead something of even more importance at the regional level.

Argentine President Mauricio Macri has repeated on several occasions that Mercosur has not lived up to its expectations, and that he wants to see the world “as an opportunity and not as a threat.” For now, the achievements have been modest. Although the Pacific Alliance (Chile, Peru, Colombia, and Mexico), accepted Argentina as an “observer country” two years ago, the main objective set by the government of Macri’s Cambiemos Party is now on standby. This is the free trade agreement with the European Union that the president of France, Emannuel Macron, has currently put on the back burner, due to the powerful influence of the agricultural lobby of his country.


The new commercial ties between Argentina and Chile will soon bear fruit, with a considerable increase in the exchange of goods, as well as the elimination of bureaucracy and red tape in customs offices on both sides of the Cordillera.

There are other interesting features of the agreement as well. One of these is the end to roaming charges for Argentine cell phone users in Chile and vice-versa. Another is the reduction in barriers to electronic commerce between the two countries.

End Mercosur and see a true alliance in the region