In addition, it means that cooperation between Britain and Chile will continue. Trade in goods and services between the United Kingdom and Chile has increased by an average of 9% per year since the provisional implementation of the agreement in 2003. British exports to Chile have grown by an average of 16% each year, with an overall increase of 351% since the start of the agreement. In modern globalized economies, trade agreements are an important factor in business activity. These agreements allow companies to easily enter countries and avoid trade tariffs to varying degrees. This confers competitive advantages on international companies that can operate under these agreements. On 23rd October the British government signed a new trade agreement with Japan, which means that 99% of British exports there will be exempt from customs duties. With Chile and Britain having struck deals that will survive Brexit, this opens doors for other countries to do the same. In preparing for trade negotiations with the United Kingdom, the same potential for mutual cooperation has been offered to other Latin American countries. This agreement replicates the effects of the existing EU-Chile Association Agreement. The aim is to ensure the continuity of trade relations between Chile and Great Britain after Brexit.
By signing the agreement between the United Kingdom and Chile, both sides have ensured economic security. This certainty is mostly given to businesses, consumers and investors after the UK`s withdrawal from the EU. The agreement also protects intellectual property rights and maintains preferential market access for trade in services. The agreement also protects intellectual property rights and maintains preferential market access for trade in services. This Agreement protects intellectual property rights and maintains preferential market access for trade in services. This means that expansion or investment in Chile or the UK will remain as attractive as before. Since companies continue to enjoy preferential access to market access, foreign investment will benefit from the same incentives to invest in Chile. Britain and Chile have signed a double taxation treaty, which means that the same income will not be taxed twice. “The UK is still working to reach an agreement with the EU on the terms of our withdrawal. The success of these discussions will determine whether the current EU-Chile agreement will no longer apply to the UK at the end of March this year or at the end of an implementation phase,” Bowden said. Liam Fox, International Trade Minister, said: “Today we signed an important agreement on trade continuity, as we prepare to leave the European Union.