MercoPress. South Atlantic News Agency

Brazil becomes Chile’s third largest trading partner

Brazil’s growing importance in Chile’s trade matrix is strongly related to reduce trade barriers.

Brazil has become Chile’s third largest trading partner, displacing Japan, according to recently released government trade figures. Total July trade between Chile and Brazil was US$547 million, compared to the US$446 million in trade between Chile and Japan during July.

Brazil achieved the third spot last May and held on to the position with the release of July import/export figures. Japan fell to the sixth spot, overtaken by South Korea and Argentina, in the fourth and fifth spots, respectively.

In July 2008 Brazil was Chile’s fourth largest trading partner, with US$931 million, while Japan had the third spot with US$1.05 billion. This July, however, Brazil overtook Japan by 5.5 percent. Japan had been Chile’s third-largest trading partner in July 2007 and July 2008.

Brazil’s growing importance in Chile’s trade matrix is strongly related to reduce trade barriers. “Tariffs are nearly zero for those who know how to comply with the rules,” said business leader Hugo Baierlein.

As for the top two spots, China edged out the United Sates as Chile’s top trading partner in July, after the U.S. maintained the top spot in July 2007 and 2008.

Although it did not rank among Chile’s top trading partners last month, Chile and India celebrated the second anniversary of its trade agreement, Acuerdo de Alcance Parcial, on Monday.

Trade between the two countries has quadrupled since 2004, from US$514 million to US$2.24 billion in 2008, reports the Dirección General de Relaciones Económicas Internacionales (DIRECON).

By Meera Pandit (editor@santiagotimes.cl)