The Free Trade Agreement between the USA and Chile: An Instrument of US Commercial Interests Rodrigo Pizarro

[Working Paper No. 02/2006]

The endorsement of a free trade agreement between Chile and the United States is not built upon the concept of trade gains. The agreement constitutes an important part of the institutional peg to the structural reforms begun by the military government, and thus is an additional restriction to make it impossible to rethink the current development strategy. In the best-case scenario, trade benefits to Chile from the FTA will be marginal, even if we add the possibilities of attracting foreign investment. On the contrary, there seems to be direct costs, in intellectual property for instance, and also considerable political costs. In the case of the United States, on the other hand, the purpose of the FTA is clear; it is an instrument to further its influence in the region. The FTA maximizes opportunities for critical and basic sectors of the US economy such as information technologies, telecommunications and other leading technologies, basic industries, capital equipment, medical equipment, services, agriculture, environmental technology and intellectual property.

WP_02_2006 (Download the full text in PDF format)