WT/REG38/R/I  
 
27 February 2024  
(24-4540) Page: 1/14 
Committee on Regional Trade Agreements  Original: English  
 
 
CANADA  - CHILE  IMPLEMENTATION REPORT  
JOINT SUBMISSION BY THE PARTIES ON THE TRADE PILLAR OF THE  
CANADA -CHILE FREE TRADE AGREEMENT  
 This Implementation Report has been drafted in accordance with Article 15 of the 
Transparency Mechanism Decision of the World Trade Organization 's (WTO) Committee on Regional 
Trade Agreements (CRTA) and following the draft guidelines contained in JOB/REG/4 issued in 
January 2013.  
 
 This report does not prejudge the Parties' position on the concept and the duration of the 
implementation periods in Free Trade Agreements (FTAs) and their relationship to the "reasonable 
length of time" within the meaning of Art. XXIV:5(c) of the GATT 1994 or "the reasonable time -
frame" within Art. V:1(b) of the GATS.  
 
_______________  
 
 
1  BACKGROUND INFORMATION ON THE AGREEMENT  
1.1.  The Canada -Chile Free Trade Agreement  (CCFTA), otherwise referred to as the Agreement, 
was signed by Canada and Chile (the Parties) on December 5, 1996 and entered into force on July  5, 
1997. Since i ts entry into force in 1997, Canada and Chile have taken several steps to broaden and 
modernize the  Agreement . This includes several updates to the tariff phase -out periods for select 
products (in 1999, 2001 and 2004) which were designed to accelerate the elimination of tariffs 
between  the Parties , as well as updates to the applicable rules of origin for products. In 2008, 
Government Procurement Chapter came into force . Then i n 2010, the Parties signed a Note of 
Interpretation on Indirect Expropriation. In 2013, a new Financial Services Chapter and updates to 
the Government Procurement, Dispute Settlement chapters and customs procedures entered into 
force. 1 
1.2.  In 2017, in support of an open, inclusive and progressive rules -based trading environment  the 
Parties signed an Amending Agreements to modernize  the CCFTA . Amendments included a stand -
alone chapter on Trade and Gender , a new chapter on Sanitary and Phytosanitary Measures, and 
modernized the Rules of Origin and provisions on non -tariff barriers , as well as improvements to the 
existing Investment Chapter. Th e modernized CCFTA  came into force in 2019.2  
1.3.  Statistical data on trade in goods and on trade in services between the Parties as well as some 
indications of Parties' import coverage after ful l implementation of the Agreement can be found in 
Annexes 1 and 2 of this Report.  
2  PROVISIONS ON TRADE IN GOODS  
2.1 Market  Access for Goods   
2.1.  The Tariff Elimination Schedules between the Parties has been completed. Canada and Chile 
agreed to the immediate el imination of tariffs for a broad range of products. Canada and Chile also 
 
1 Changes were notified and circulated in WT/REG38/N/1/Add.2 – S/C/N/65/Add.1.  
2 Changes were notified and circulated in WT/REG38/N/1/Add.3 - S/C/N/65/Add.2.  WT/REG38/R/I  
 
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 agree d to maintain their respective duty drawback programs which allow for the refund of customs 
duties levied on imported materials and components incorporated into exported goods.  
2.2.  Tariffs on some industrial and resource -based goods were phased -out over a maximum of five 
years. For Chile, the Agreement also identified some industrial products with longer tariff phase -
outs, such as certain oils, used pneumatic tires, industrial tires and parts of tires. For textiles and 
apparel, the Agreement provided for a tariff phase -out of up to six years for Canada and five years 
for Chile, and a special safeguard provision to guard against import surges during the phase -out 
period. Footwear tarif fs were phased -out over six years in both countries.  
2.3.  Tariffs on a number of agricultural goods were eliminated immediately upon entry into force of 
the Agreement, while others were phased out over five years for Chile and a limited number of tariffs 
were phased out over six years for Canada. For Chile, the  original  Agreement  (1997)  also provided 
for longer tariff phase -outs of ten years or more on very sensitive agricultural products: over quota 
tariff for pork and vegetable oils (10 years) ; potato products ; corn flour and certain sugar products 
(10 years) ; beef over quota tariff (15 years) ; certain poultry preparations (15 years) ; cane or beet 
sugar (16 years) ; and, milling wheat and wheat flour (17 years). In addition, a limited number of 
agricultural goods identified further below were excluded from any tariff preferences.  
2.4.  During this implementation period, three additional protocols were signed, which made changes 
to the original liberalization schedules. On November 4, 1999, the first addit ional protocol was signed 
to accelerate tariff elimination on over 100 tariff lines for both Canada and Chile. These goods were 
free of customs duty effective January 1, 2000. On October 25, 2001, the second additional protocol 
was signed which provided fo r additional tariff elimination concessions by Chile, linked to Chile 's 
adoption of safeguard measures with respect to wheat. On November 8, 2004, the third additional 
protocol was signed which provided additional tariff concessions to Canada, as per Chile 's agreement 
to give Canada the same tariff treatment as the United States of America with respect to certain 
agricultural products, following the signature of the United States -Chile Free Trade Agreement . 
2.5.  The CCFTA prohibits any quantitative restrictions on the importation of any goods from the 
other Party, except in accordance with the Parties' rights and obligations under Article XI of GATT 
1994. A few exceptions are listed in Annex C -01.3 dealing with Chile's prohibition on imports of used 
vehicles and with Canadian measures regarding the prohibition on imports of any goods enumerated 
or referred to in Schedule VII of the Canadian Customs Tariff (re -enumerated as tariff items 
9897.00.00, 9898.00.00 and 9899.00.00 on 1 January 1998).  
2.1.1 Tariffs  
2.6.  Please refer to Annex C-02.2 of the Agreement:  
• Canada 's tariff elimination schedule:  
https://www.international.gc.ca/ trade -commerce/trade -agreements -accords -commerciaux/agr -
acc/chile -chili/fta -ale/02c.aspx?lang=eng   
• for Chile's tariff elimination schedule:  
http://www.s ice.oas.org/Trade/chican_s/Dindice.asp  
 
2.1.2 P roducts E xcluded from Liberalization  
2.7.  The products excluded from tariff elimination are identified with staging category "Y" in the 
Schedules to Annex C -02.2, and are limited to a number of dairy, poultry and egg products ( less 
than 100 tariff lines in each country's tariff elimination schedule ). Canada retained its Most Favoured 
Nation ( MFN) tariff quotas and MFN over -quota tariffs for certain dairy, poultry and egg pr oducts, 
while Chile retained its MFN tariffs for the same products.  
2.2  Export Duties and Charges, and Q uantitative Restrictions  
2.8.  The Agreement prohibits any restrictions on the exportation of any good from the other Party, 
except in accordance with the Parties ' rights and obligations under Article XI of GATT 1994. 
Exceptions are listed in Annex C -01.3 and Annex C -08. Annex C -01.3 refers to Canada's ability to 
apply export controls on logs, the application of restrictions relating to the export of unprocessed WT/REG38/R/I  
 
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 fish in certain provinces, and provisions in the Export Act  and Excise Act  relating to alcohol. 
Annex  C-08 of the Agreement provides an exception for Chile's copper and other reserves for 
national industry. The Agreement also prohibits duties, taxes or charg es on the export of a good, 
unless they are also applied to the good when destined for domestic consumption (i.e., goods not 
exported).  
2.3  Regulatory Provisions on T rade i n Goods  
2.3.1   Rules of Origin  
2.9.  On Janua ry 1, 2005 and October 15, 2021, a mendments to the CCFT A's rules of origin entered 
into force to align the Rules of Origin Chapter, product -specific rules of origin and other related 
annexes with more recent versions of the World Customs Organization 's Harmonized Commodity 
Description and Coding System  (HS). The 2021 amendments also included liberalizations to certain 
rules of origin that provided producers with more flexibility to source inputs for certain goods and 
updated the Agreement to incorporate policy improvements that Canada and Chile have adopted 
since 1997.  
2.3.2   Technical Barriers to Trade  
2.10.   A Technical Barriers to Trade  (TBT)  Chapter was added as a part of the 2019 amendments, 
this include d annexes on icewine and organic  products . The original Agreement covered a few 
aspects of TBT  measures with provisions related to import and export restrictions, wine, and distilled 
spirits as well as export taxes and other export measures.  
2.11.   The newly created chapter further details and builds on to the existing obligations with new 
provisions related to international standards, technical regulations , cooperation  in conformity 
assessment  and transparency . It also create d a Committee on Technical Barriers to Trade to monitor 
the implementation of th e Chapter and addr ess any issue arising under it. No meeting of the 
Committee on Technical Barriers to Trade has been necessary to date.  
2.3.3   Sanitary and P hytosanitary Measures  
2.12.   As part of the 2019 modernization, a Sanitary and Phy tosanitary  (SPS)  Measures Chapter was 
added  to the Agreement. The new SPS Chapter affirms the Parties ' rights and obligations under the 
WTO SPS Agreement and established a new SPS Committee to strengthen bilateral cooperation and 
address bilateral issues. The new SPS Committee held its  inaugural meeting on May 26, 2021. The 
SPS Chapter also includes provisions on SPS issue avoidance and resolution aimed at addressing 
and resolving issues expeditiously.  
2.3.4   Customs Procedures  
2.13.   The Customs Procedures that are in place under the Agreement have  been applied as of its 
entry into force.  Since the entry into force of the Agreement, there were no particular issues to 
report on.  
2.14.   As part of the Canada -Chile Amending Free Trade Agreement (2012), an amendment was 
made in Article E -02 to the timeframe fo r requesting a refund of duties paid on CCFTA eligible goods 
which extended the refund period beyond one year.  
2.3.5   Emergency Actions  
2.15.   The CCFTA requires that imports from the other Party be excluded from a global safeguards 
measure unless: (i) imports from the other Party account for a substantial share of total imports; 
and (ii) imports from the other Party contribute importantly to the serious injury, or threat thereof. 
This requirement has been followed by Canada, which excluded imports from Chile when ap plying 
global safeguards on certain steel products in 2018.  
2.16.   As a transitional measure, the CCFTA provided for bilateral safeguards for all goods as well 
as a textile and apparel specific safeguard. The transition period was six years for most goods, 
except  where the tariff phase out was longer than six years, in which case the transition period WT/REG38/R/I  
 
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 equalled the length of the tariff phase out (e.g., 17 years for Chilean imports of wheat flour). The 
transition period is expired for all goods and bilateral safegua rds can no longer be applied. Canada 
did not take any safeguard actions against Chile under the Agreement. Chile undertook one action 
in 2001 with respect to wheat imported from Canada.  
3  PROVISIONS ON INVESTMENT, SERVICES AND RELATED MATTERS  
3.1  Investment  
3.1.  Among WTO -plus features of the Agreement, the Investment Chapter provides National 
Treatment and Most -Favoured Nation treatment commitments at the pre -establishment phase, 
protections against expropriation, guarantee of a minimum standard of treatment in acco rdance with 
customary international law, and other common investment protections. As part of the 2019 
modernization, the Investment Chapter underwent a number of changes designed to improve legal 
clarity of certain obligations, as well as operation of the investor -state dispute settlement. There 
have been no particular issues to report since the entry into force of the original Agreement or its 
modernization.  
3.2  Services (Cross -Border Trade in Service, Financial Services)  
A. COMMITMENTS  
 
3.2.  The Cross -Border Trad e in Services Chapter (Chapter H) in th e Agreement covers two and a 
half modes of supply (mode 1, mode 2, and presence element of mode 4), while the Investment 
Chapter covers mode 3 and the chapter on Temporary Entry for Business Persons covers the "entry " 
element of mode 4  (i.e. at -the-border matters such as economic needs testing, etc.) . Commitments 
under this chapter are taken on a negative -list basis.  
3.3.  There are certain exceptions to the coverage of the chapter, specifically financial services, air 
services (except aircraft repair and maintenance services and specialty air services), government 
procurement, subsidies and grants, and access to the other Party 's employment market or 
employment on a permanent basis.  
3.4.  Chapter H requires that each Party accor d non -discriminatory treatment to cross -border service 
suppliers from Canada and Chile. This includes commitments on National Treatment, Most -Favoured 
Nation treatment, and Local Presence. Parties are also committed to obligations requiring 
transparency re garding quantitative restrictions, with a goal of progressive liberalization. 
Reservations or exceptions are listed in the appropriate annexes to the Chapter.  
B. REGULATORY PROVISIONS  
3.5.  Chapter H also contains provisions related to domestic regulation and r ecognition, and provides 
Parties with the ability to deny benefits of the Chapter in certain situations.  
3.3  Financial Services  
3.6.  A standalone Financial Services Chapter (Chapter H bis) was created a s part of the 2013 
modernization.  It contains tailored provis ions that reflect the unique regulatory environment of the 
financial sector. Chapter H  bis includes: specific trade and investment protection commitments that 
provide a level playing field for financial institutions; flexibility to implement domestic measu res to 
protect consumers and the integrity and stability of the financial sector; and tailored dispute 
settlement commitments to reflect the highly regulated and systemically important nature of the 
financial services sector.  
3.7.  The Financial Services Chapter reflects the core commitments in the Investment and Cross -
Border Trade in Services Chapters (Chapter G and H respectively), but tailors them to unique nature 
of the financial services sector. The Financial Services Chapter al so incorporates certain provisions 
of Chapters G and H (e.g., transfers, expropriation and compensation, denial of benefits ). WT/REG38/R/I  
 
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 3.4  Telecommunications  
3.8.  The Telecommunications Chapter supports enterprises that rely on telecommunications 
infrastructure in the trad e of their goods and services by ensuring that they will have ongoing and 
fair access to and use of telecommunications services. It also includes transparency commitments 
to ensure that the Parties make publicly available their measures applicable to telec ommunications.  
3.9.  Canada and Chile also agreed to a common approach for standards -making and conformity 
assessment procedures. The Agreement includes safeguards to prevent a monopoly provider of 
telecommunications services to engage in anti -competitive behavi our and a commitment to technical 
cooperation by the Parties.  
3.10.   Since the CCFTA came into force, there have been no substantive issues under this Chapter, 
nor have the Parties made any changes to the Chapter.  
3.5  Temporary Entry for Business Persons  
3.11.   The CCFTA temporary entry commitments facilitate the temporary entry of business persons, 
including by providing some core activities that can be performed by work permit -exempt  business 
visitors, and economic needs testing for traders/investors, professio nals and intra -company 
transferees.  
3.12.   Other obligations include the publication of information on temporary entry under the CCFTA 
and the establishment of a Temporary Entry Working Group (TEWG). The CCFTA TEWG has not 
formally met, given the absence of items  for discussion.  
3.13.   Since the entry into force of the Agreement, there have been no substantive issues to report 
on and no changes have been made to the Agreement in this area.  
4  OTHER PROVISIONS IN THE AGREEMENT  
4.1  Competition Policy, Monopolies and State Enter prises  
4.1.  This Chapter establishes obligations for the Parties to:  
• maintain measures proscribing anti -competitive conduct ;  
• consult on the effectiveness of the measures ; and   
• cooperate on matters of competition law enforcement policy  
 
4.2.  Neither Party has recou rse to dispute settlement  under this Chapter . Investors do not have 
recourse to investor -state arbitration under the CCFTA for any matter arising under Article J -01: 
Competition Law.  
4.3.  This Chapter also provides that designated monopolies must act in accorda nce with commercial 
consideration and provide non -discriminatory treatment in the purchase of goods or services. 
Similarly, state enterprises are required to provide non -discriminatory treatment.  
4.2  Government Procurement  
4.4.  The Agreement includes procedural r ules that support the principles of non -discrimination, 
fairness and transparency in procurement. In 2019, Canada and Chile made technical amendments 
to the Government Procurement Chapter in order to allow for reduced time period for submitting 
tenders, wh en electronic tendering is used. Otherwise, since the entry into force of the Agreement, 
there have been no particular issues to report on related to government procurement.  
4.3  Trade and Gender  
4.5.  The 2019 modernization of the Agreement included the addition of  the Trade and Gender  
Chapter . The Chapter includes an article on cooperation activities (Article N bis-03) under which 
Canada and Chile have developed a work plan, which is updated every 2 years, for implementing 
activities on trade and gender. Under this  Chapter, Canada and Chile have implemented activities WT/REG38/R/I  
 
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 to advance trade and gender, including workshops, video conferences, GBA+ training, and other 
activities.  
4.6.  The Chapter also establishes a Trade and Gender Committee (Article N bis-04). The 
Committee 's meetings serve as an opportunity for Canada and Chile to review their progress 
regarding the implementation of activities with respect to the work plan and discuss ways to better 
advance trade and gender bilaterally, plurilaterally and multilaterally, for e xample under the Global 
Trade and Gender Arrangement (GTAGA) and at the WTO.  
4.4  Antidumping and Countervailing Duty Matters  
4.7.  The Agreement provides, uniquely among Canada 's FTAs, that neither Party may initiate any 
anti-dumping investigations or reviews nor impose any new anti -dumping measures with respect to 
goods of the other party (Article M -01). Canada has fully implemented these obligations under its 
domestic law and i nvestigative practices.  
4.8.  The Agreement also establishes a Committee on Trade Remedies and requires the Parties to 
meet within five years of the Agreement 's implementation to determine if any changes should be 
made to an of its provisions. Since CCFTA 's entry into force, there have been no substantive issues 
raised on anti -dumping and countervailing duty matters and no changes have been made to the 
Agreement in this area.  
4.5  Institutional Arrangements and Dispute Settlement  
4.9.  The Agreement establishes a Free Trade Commission under Article N -01, which is designed to: 
(a) supervise the implementation of the Agreement; (b) oversee its further elaboration; (c) resolve 
disputes  that may arise regarding its interpretation or applicat ion; (d) supervise committees and 
working groups established under the Agreement; and (e) consider any matter that may affect the 
operation of the Agreement.  
The Commission oversees ten committees and a working group:  
 
1.  Committee on Trad e in Goods and  Rules of Origin  
 - Sub-Committee on  Agriculture  
- Customs Sub -Committee  
2.  Committee on Telecommunications Standards  
3.  Committee on Trade Remedies   
4.  Advisory Committee on Private Commercial Disputes  
5.  Committee on Procurement  
6.  Committee on Financial Services  
7.  Committee on Sanitary and Phytosanitary Measures  
8.  Committee on Technical Barriers to Trade  
9.  Committee on Trade and Gender  
10.  Committee on Intellectual Property  
11.  Temporary Entry Working Group  
 
4.10.   The Commission may also establish  and delegate responsibilities to committees, working 
groups or expert groups; seek advice of nongovernmental parties; and take other actions in the 
exercise of its functions , as agreed by the Parties . The Commission is meant to convene on an annu al 
basis, though, has met only nine times since its first meeting in 1998, and most recently in June, 
2021.  
4.11.   The Commission is charged with the establishment of a Secretariat under Article N -02, 
comprising national Sections. The Secretariat assists the Com mission in implementing and 
administering the Agreement and facilitating its operation.  
4.12.   The Agreement includes a state-to-state dispute settlement mechanism based on the model 
of the WTO Dispute Settlement Understanding. The Parties have not made use of this mechanism  
to date . All chapters are subject to state -to-state dispute settlement, except for the chapters on: 
(a) Emergency Action; (b) Sanitary and Phytosanitary Measures; (c) Competition Polic ies, 
Monopolies and State Enterprises ; and (d) Trade and Gender.  WT/REG38/R/I  
 
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 5  RELATED AGREEMENTS  
5.1  Canada -Chile Agreement on Environment Cooperation  
5.1.  The Canada -Chile Agreement on Environmental Cooperation  (CCAEC) entered into force in 
1997, in parallel to the Canada -Chile Free Trade Agreement. The CCAEC creates a framework to 
better conserve, protect and enhance the environment of the two countries through cooperation and 
effective enforcement of environme ntal laws and regulations. Canada and Chile celebrat ed the 25th 
anniversary of the Agreement in 2022 .  
5.2.  The CCAEC established the Canada -Chile Commission for Environmental Cooperation, 
composed of a Council, a Joint Public Advisory Committee and a Joint Sub mission Committee. The 
Commission is supported by two National Secretariats, respectively located in each country 's Ministry 
of the Environment.  
5.3.  As required by the Agreement, Canada and Chile hold an annual Council Session to review 
progress on the implem entation of the Agreement; discuss environmental priorities; approve the 
joint work program for environmental cooperation; and, meet with the public and the Agreement 's 
Joint Public Advisory Committee. Since the entry into force of the CCAEC, Canada and Ch ile have 
held 20 Council Sessions; the most recent, attended by Canada's Minister of the Environment, 
Steven  Guilbeault and Chile 's Minister of the Environment, Maisa Rojas , took place on October 12, 
2022 in Santiago, Chile.  
5.4.  Under the CCAEC, Canada and Ch ile have implemented projects of joint interest in the areas 
of climate change, climate finance, gender equality, electrification of transportation, biodiversity and 
protected areas, circular economy,  ecotourism,  clean technologies, and chemicals and  organ ic waste 
management, among others.  
5.5.  Other institutions and mechanisms have been created by the Agreement to support its 
implementation, such as a submission on enforcement matters process and a dispute settlement 
mechanism. Since the CCAEC 's entry into for ce, there have been no substantive issues raised to 
report on, and its environment pro visions have not been modified.  
5.2  Canada -Chile Agreement on Labour Cooperation  
5.6.  The Canada -Chile Agreement  on Labour Cooperation (CCALC) entered into force in 1997 , in 
parallel to the Canada -Chile Free Trade Agreement . The CCALC commits the Parties t o; 
(a) effectively enforcing their own labour legislation;  (b) cooperating on labour matters; and 
(c) promoting internationally recognized rights and labour principles, including freedom of 
association and collective bargaining.  
5.7.  To accomplish these goals, the CCALC created institutions and mechanisms for cooperative 
activities, inter -governmental consultations, as well as for independent evaluations and dispute 
settlement related t o obligations to enforce domestic labour laws.  The Parties have not made use of 
this dispute resolution mechanism.  Since CCALC 's entry into force, there have been no substantive 
issues raised to report on and its labour provisions have not been modernized. Numerous cooperative 
activities have taken  since the entry into force of the CCALC. The most recent activities include d the 
sharing of experiences and good practices in the areas of industrial relations and jobs and labour 
market information.  
  WT/REG38/R/I  
 
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 ANNEX 1  
STATISTICS ON TRADE IN GOODS3 
Table A1. 1 Canada's merchandise imports from Chile ( CAD million)  
Year Total  Agricultural products¹  Non-agricultural products²  
1997  326 140 186 
1998  360 144 216 
1999  422 158 263 
2000  555 185 370 
2001  641 214 427 
2002  670 241 429 
2003  886 281 605 
2004  1,309  322 987 
2005  1,663  354 1,309  
2006  1,853  405 1,448  
2007  1,687  430 1,256  
2008  1,794  479 1,315  
2009  1,731  506 1,225  
2010  1,872  497 1,375  
2011  1,911  510 1,401  
2012  1,677  529 1,148  
2013  1,757  610 1,147  
2014  1,724  607 1,117  
2015  1,853  602 1,251  
2016  1,687  601 1,086  
2017  2,014  570 1,445  
2018  1,808  668 1,141  
2019  1,645  630 1,015  
2020  1,621  635 986 
2021  1,804  624 1,180  
¹  Products with HS codes within Chapters 01 to 15 . 
²  Products with HS codes within Chapters 16 to 99 . 
Source:  Statistics Canada, Canadian International Merchandise Trade Web Application.  
 
Table A1. 2 Canada's merchandise exports to Chile ( CAD million)  
Year Total  Agricultural products¹  Non-agricultural products²  
1997  392 83 309 
1998  339 53 286 
1999  360 75 285 
2000  444 75 370 
2001  369 71 298 
2002  283 56 226 
2003  324 45 279 
2004  360 54 306 
2005  417 37 380 
2006  473 52 421 
2007  765 66 698 
2008  724 110 614 
2009  645 118 527 
2010  587 90 498 
2011  819 118 701 
2012  789 122 667 
2013  800 158 642 
2014  1,136  278 858 
2015  790 221 569 
2016  725 167 558 
2017  886 268 618 
2018  985 311 674 
2019  878 254 625 
2020  981 395 586 
 
3 Discrepancies between Canadian and Chilean data may result from methodology and data collection 
differences.  WT/REG38/R/I  
 
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 Year Total  Agricultural products¹  Non-agricultural products²  
2021  1,222  361 861 
¹  Products with HS codes within Chapters 01 to 15.  
²  Products with HS codes within Chapters 16 to 99.  
Source:  Statistics Canada, Canadian International Merchandise Trade Web Application.  
Table A1. 3 Chile's merchandise imports from Canada (US D million)  
Year Total  Agricultural products¹  Non-agricultural products²  
2003  340 46 294 
2004  360 45 315 
2005  426 41 386 
2006  503 55 448 
2007  999 70 930 
2008  1,032  103 929 
2009  743 111 632 
2010  727 87 640 
2011  912 143 769 
2012  1,033  126 907 
2013  1,541  182 1,360  
2014  1,266  303 962 
2015  744 203 541 
2016  629 141 488 
2017  762 212 550 
2018  882 257 625 
2019  731 211 520 
2020  809 322 487 
2021  1,166  313 853 
2022  1,031  252 779 
¹  Products with HS codes within Chapters 01 to 15.  
²  Products with HS codes within Chapters 16 to 99.  
Source:  Central Bank of Chile.  
 
Table A1. 4 Chile's merchandise exports to Canada ( USD million)  
Year Total  Agricultural products¹  Non-agricultural products²  
2003  437 35 403 
2004  825 46 779 
2005  1,110  61 1,049  
2006  1,316  93 1,223  
2007  1,304  119 1,185  
2008  1,245  151 1,095  
2009  1,279  159 1,120  
2010  1,287  160 1,127  
2011  1,474  192 1,282  
2012  1,279  187 1,092  
2013  1,419  223 1,196  
2014  1,197  231 966 
2015  1,235  195 1,040  
2016  972 221 751 
2017  1,417  221 1,196  
2018  1,033  256 777 
2019  1,002  256 746 
2020  979 230 749 
2021  1,183  238 946 
2022  1,363  274 1,089  
¹  Products with HS codes within Chapters 01 to 15 . 
²  Products with HS codes within Chapters 16 to 99 . 
Source:  Central Bank of Chile.   WT/REG38/R/I  
 
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 Table A1. 5 Canada import coverage after full implementation of the Agreement  
Coverage  (Year)  % of tariff lines  % of import value  
1997  77.8 67.2 
1998  72.1 71.1 
1999  71.1 67.5 
2000  71.2 73.3 
2001  83.0 76.2 
2002  88.5 87.3 
2003  97.7 100 
2004  97.7 100 
2005  97.6 100 
2006  97.6 100 
2007  97.6 100 
2008  97.6 99.9 
2009  97.5 99.8 
2010  96.4 100 
2011  96.3 99.9 
2012  96.3 99.6 
2013  96.1 100 
2014  96.0 100 
2015  95.6 100 
2016  95.6 100 
2017  95.4 100 
2018  95.4 99.6 
2019  95.3 100 
2020  95.3 100 
2021  95.3 100 
Note:  Line coverage (% tariff lines) is calculated as duty -free quota -free Canadian tariff lines on which 
imports from Chile took place divided by total Canada tariff lines on which imports from Chile took 
place.  
 Trade coverage (% imports) is calculated as duty -free quota -free Canadian imports from Chile 
divided by total Canadian imports from Chile. For the purpose of these calculations, products with 
MFN tariffs equal to zero are excluded.  
Source:  Statistics Canada and WTO.  
 
Table A1. 6 Chile: Preference Utilization  
Coverage  % of tariff lines  % of import value  
2000  .. 77.5%  
2001  .. 89.0%  
2002  .. 89.3%  
2003  .. 84.1%  
2004  .. 86.3%  
2005  .. 88.9%  
2006  .. 78.7%  
2007  .. 88.8%  
2008  .. 84.9%  
2009  .. 76.0%  
2010  .. 80.4%  
2011  .. 79.4%  
2012  .. 79.5%  
2013  .. 87.1%  
2014  .. 75.5%  
2015  .. 69.6%  
2016  .. 74.7%  
2017  .. 72.3%  
2018  .. 73.5%  
2019  .. 69.3%  
2020  61.7%  72.7%  
2021  61.0%  79.7%  
2022  63.8%  73.2%  
..  Not available.  
Source:  Chilean Customs Service.   WT/REG38/R/I  
 
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 ANNEX 2  
STATISTICS ON TRADE IN SERVICES4 
Statistics from Canada  
Table A2. 1 Canada trade in services with Chile , by category  (CAD million)  
Year Debits (Imports)  Cred its (Exports)  
Trade  
Balance  Travel  Commercial 
services  Transpor -
tation and 
government 
services  Total  Travel  Commercial 
services  Transpor -
tation and 
government 
services  Total  
1998 12 6 9 28 18 38 12 67 40 
1999 25 5 7 36 15 38 8 61 24 
2000 33 18 13 64 14 46 9 70 6 
2001 25 15 11 51 15 50 9 74 23 
2002 25 17 45 86 18 148 10 176 89 
2003 25 15 26 67 11 63 10 84 17 
2004 25 23 24 72 16 75 17 108 36 
2005 25 17 25 67 21 67 21 109 42 
2006 25 20 23 68 23 42 20 85 18 
2007 25 11 26 63 21 62 20 103 40 
2008 25 26 31 82 22 77 22 121 38 
2009 26 122 30 177 24 92 18 134 -43 
2010 26 30 36 91 29 90 22 140 49 
2011 25 47 43 115 29 143 22 194 78 
2012 26 51 40 117 34 178 19 231 114 
2013 26 59 39 124 39 151 18 208 84 
2014 30 41 39 110 31 173 18 222 113 
2015 37 23 45 105 44 120 19 183 79 
2016 37 37 47 122 43 125 22 189 67 
2017 38 27 49 114 56 99 24 179 66 
2018 65 39 52 156 59 155 28 242 86 
2019 59 49 50 159 65 196 27 287 128 
2020 23 50 46 119 26 203 15 244 125 
Source:  Statistics Canada, Canadian International Merchandise Trade Web Application . 
 
1. This brief presents foreign  direct investments ( FDI) stock figures measured using two bases: 
the Immediate Investing Country (IIC) approach and the Ultimate Investing Country (UIC) approach. 
While data on an IIC basis for a given country are widely availab le over a longer time period, data 
on a UIC basis are not always available. When available, data on a UIC basis are preferable as the 
UIC approach identifies the country of the investor that ultimately controls the investment.  
Table A2. 2 Canada 's FDI stock from Chile, 2021  
 IIC (2021)  UIC (2021)  
Value CAD 1.1 billion CAD 425 million  
Share 0.1% 0.04%  
Rank 34th 37th 
Source:  Statistics Canada and Office of the Chief Economist.  
 
2. Recent trends: In 2021, FDI stock from Chile on an IIC basis stood at CAD 1.1 billion, an 
increase of 8.1% ( CAD 83 million) from 2020. It grew rapidly between 2012 and 2017, at an average 
annual rate of 82% from CAD 60 million to almost CAD 1.2 billion. It dropped to CAD 573 million in 
2018, before growing at an average annual rate of 24% to its 2021 value (see Chart A2.1). 
 
4 Discrepancies between Canadian and Chilean data may result from methodology and data collection 
differences.  WT/REG38/R/I  
 
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 Chart A2. 1 Direct investments between Canada and  Chile (CAD billion)  
 
 
 FDI (UIC) stock   FDI (IIC) stock    
Source:  Statistics Canada and Office of the Chief Economist.  
 
3. FDI from Chile on a UIC basis tells a different story, with a stock of just CAD 425 million in 
2021. This indicates that at least CAD 679 million (62%) of Chilean FDI on an IIC basis was 
ultimat ely from other source countries.  FDI on a UIC basis peaked in 2016 at CAD 712 million, 
growing at an average annual rate of 53% between 2014 and 2016, then fell at an average annual 
rate of 26% to CAD 287 million in 2019. Subsequently, it grew at an average annual rate of 22% to 
its 2021 value.  
Share and rank : On a UIC basis, Chile represented 0.04% of Canada 's FDI stock 
in 2021. Chile was the 37th largest (2nd in South and Central America) source of FDI 
stock for Canada in 2021 . 
 
4. Recent trends : Canadian Direct Investment (CDIA) stock in Chile stood at CAD 22 billion in 
20215, a decrease of 11% (or CAD 2.8 billion) since 2020. It grew at an average rate of 4.8% from 
CAD 17 billion in 2012 to CAD 19 billion in 2014, after which it fell to CAD 16 billion in 2015. 
Subsequently, it grew at an average rate of 16% to CAD 24 billion in 2018, fell 15% to CAD 21 
billion in 2019, rebounded to CAD 25 billion (up 22%) in 2020 to then decline slightly to its 2 021 
value (see Chart A2.2).  
CDIA stock (IIC) in Chile  
Value : CAD 22 billion in 2021  
Share of CDIA : 1.4% in 2021  
Rank : 12th largest recipient country of CDIA stock  
 
Chart A2.2 Canadian Direct Investment  stock (IIC) in Chile  (CAD billion)  
 
Source:  Statistics Canada and Office of the Chief Economist.  
 
5 Figures in this section are based on the immediate destination concept. Figures presenting the 
ultimate destination of Canadian direct investment do not exist currently.  
WT/REG38/R/I  
 
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 Share and rank: In 2021, Chile 's share of CDIA stock stood at 1.4%, down from 
1.7% in 2020. As a result, at the end of 2021, Chile was the 12th largest (1st in South 
and Central America) recipient countr y of CDIA stock.  
 
5. Interests of Canadian multinationals (CMNEs) in the Chilean economy: Total assets 
and liabilities held by CMNEs in Chile have increased for the fourth consecutive year in 2019. The 
value of total assets  increased 17% from 2018, reaching over CAD 95 billion, making Chili the 5th 
most important economy where CMNEs ' assets are located worldwide. Liabilities  totaled CAD 73 
billion in 2019, up 37% from 2018, and representing the 6th highest value worldwide. On the other 
hand, CMNEs in Chile experienced a 21% decline in sales from the  previous year; their sales totaled 
CAD 9.7 billion in 2019. Between 2011 and 2018, sales had grown at an average annual rate of 
1.8%. The number of employees  working in CMNEs in Chile was 23,400, a decrease of 17% from 
the previous year and a record decli ne since 2011 (earliest data available). Despite these declines, 
Chile ranks high within South and Central America, placing 2nd for values of sales, 4th in number of 
employee and 1st for both assets and liabilities.  
Statistics from Chile  
6. Recent trends: In 2021, FDI stock from Canada in Chile stood at USD 33.2 billion, an increase 
of 4.0% ( USD 1,273  million) from 2020. Between 2012 and 2021, it grew at an average annual rate 
of 7.7% from USD 17 billion to 33.2 billion (see Chart A2.3). 
Chart A2.3 Canadian Direct Investment stock in Chile  (million USD)   
 
Source:  Central Bank of Chile.  Economist.  
 
Share and rank: Canada represented 13.2% of Chile 's FDI stock in 2021. 
Canada was the main source of FDI stock for Chile that year.  
7. Recent trends: Chilean Direct Investment  (ChDIA) stock in Canada stood at USD 2.2 billion 
in 2021, an increase of 21.2% (or USD 394 million) since 2020. It grew at an average rate of 7.4% 
from USD 1.1 billion in 2012 to USD 2.2 billion  (see Chart  A2.4). It fell from 2012 up to 2014. Then 
it grew at an annual rate of 31.5% from 2014 to 2021.  
WT/REG38/R/I  
 
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 Chart A2.4 Chilean Direct Investment  stock in Canada (million USD)  
 
Source:  Central Bank of Chile.  
 
 Value : USD 2.2 billion in 2021   
 Share of ChDIA : 1.5% in 2021   
 Rank : 11th largest recip ient country of CDIA stock  
Table A2. 3 Chile's FDI Assets (USD million)  
 2012  2013  2014  2015  2016  2017  2018  2019  2020  2021  
Assets FDI , flows  
Canada  161 -612 52 681 111 19 -335 50 165 210 
Total 19,935  9,323  10,080  15,851  7,876  2,535  1,847  10,345  6,705  14,454  
Asset direct investment position, stocks  
Canada  1,180  529 331 1,017  1,218  1,277  929 1,679  1,854  2,247  
Total 96,965  101,736  105,003  105,577  116,022  119,834  120,268  130,261  132,877  146,695  
Source:  Central Bank of Chile.  
 
Table A2. 4 Chile's FDI Liabilities  (USD million)  
 2012  2013  2014  2015  2016  2017  2018  2019  2020  2021  
FDI liability , flows  
Canada  2,227  2,430  3,129  -1,226  326 1,104  2,661  1,348  1,882  2,832  
Total 31,802  21,121  25,528  17,766  11,363  5,237  7,943  13,579  9,205  15,252  
Liability direct investment positions, stocks   
Canada  17,011  21,734  24,076  24,523  26,665  28,413  29,454  29,819  31,936  33,210  
Total 204,775  210,344  222,558  222,984  236,752  257,748  254,160  257,709  259,614  251,224  
Source:  Central Bank of Chile.  
Notes:  1. The asset/liability approach corresponds to the traditional method for displaying FDI information 
(Balance of Payments and International Investment Position Manual Sixth Edition, BPM6). For assets 
include investments of residents in Chile in companies located abroad. For liabilities include 
investments of non -resident entities in entities residing in Chile. Total amounts by year are the 
current amounts published in the financial account and the inter national investment position.  
 2. For assets, flows, stocks and earnings of companies residing in Chile are directly reported to the 
Central Bank through the Compendium of Foreign Exchange Regulations. For liabilities, information 
is based on the annual su rvey on FDI in Chile. The information of stocks is reviewed, refined and 
imputed statistically to improve the coherence and coverage of the sample. As a consequence, not 
allocated includes the difference between total flows (or stocks) of the financial acc ount (or IIP) at 
an aggregate level and the samples distributed by country.  
 3. Historical series were updated since 2012, due to methodological improvements and availability 
of information sources.   
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