Chile: A Pioneer in Trade Policy

Abstract

Chile has followed one of the most aggressive trade policies in the world over the last three decades.’ It has engaged in unilateral trade liberalization, supported and participated in multilateralism, and pioneered in the negotiation of bilateral and plurilateral free trade agreements (FTAs).² Its FTA partners have included its neighbors in Latin America, but also the United States, Europe, and Asia. No partner seems too big or too powerful for the Chilean trade juggernaut, and few seem too small or too weak. As two trade experts said recently, “[w]hen it comes to trade and integration policies, Chile seems to be approaching ‘the end of the story.’ The pioneer of trade liberalization in Latin America and the Caribbean has probably gone far beyond any other developing country … The journey to free trade … was not without setbacks, but Chile’s trade policies these days are as close to textbook recommendations as they can get” (Mesquita Moreira and Blyde, 2006: 3).