The Ministry of Trade and Industry is pleased to announce the signing of a new Partial Scope Trade Agreement (PSTA) with the Republic of Chile. This landmark agreement, which comes after seven (7) years of negotiation between both countries, marks a significant milestone in Trinidad and Tobago’s ongoing efforts to expand trade relations and strengthen economic cooperation with strategic international partners.
The Agreement represents a significant step in deepening bilateral trade relations as it provides for preferential market access between the two countries and will assist in Trinidad and Tobago’s efforts to increase both energy and non-energy exports as part of the Government’s continued trade expansion and economic diversification efforts.
Within the framework of the Agreement 213 tariff lines for locally manufactured products will incur 0% duty into Chile upon entry into force of the Agreement, following which products under 54 tariff lines will attain duty free treatment into Chile, after 3 years. Similarly, Chilean manufacturers now benefit from reduced rates of duty on products from Chile into Trinidad and Tobago under 143 tariff lines.
Specifically, preferential market access treatment into Chile for Trinidad and Tobago’s energy sector will be provided for items such as methanol, ammonia, LNG, aviation fuels, base oils, lubricants, propane, butane, and urea etc. In addition, non-energy items from Trinidad and Tobago which will have preferential access into Chile from the food and beverage, cosmetics, chemicals, construction, paper, and fashion industries include alcoholic beverages, juices, pasta, cocoa products, ketchup and other condiments, waters, concrete, clothing, ferrous products, fruits and vegetables and doors and windows.
Speaking at the Agreement’s signing, Minister of Trade and Industry, the Hon Paula Gopee-Scoon underscored that the Partial-Scope Trade Agreement advances the Government’s economic diversification efforts, and supports the overarching policy objective of deepening trade ties with Latin American markets, while enhancing the global competitiveness and reach of locally manufactured goods.
She said the Ministry of Trade and Industry would continue to pursue trade and other agreements both regionally and internationally that can support the private sector in enhancing export capabilities and penetrating international markets.
Commenting on Trinidad and Tobago’s trade relationship with Chile, Minister Gopee-Scoon further noted that during the period 2014 to 2020, Trinidad and Tobago’s total exports to Chile averaged approximately TT$710.6 million annually, with energy exports accounting for approximately TT$706.3 million, while non-energy exports averaged TT$4.4 million.
Delivering remarks and signing the agreement on behalf of the Government of Chile, Acting Minister of Foreign Affairs Ms. Claudia Sanhueza described Trinidad and Tobago as an important partner for Chile and Latin America.
“This Partial Scope Agreement reaffirms our country’s interest in approaching the Caribbean Community, as part of the strategy to promote the diversification of our international economic relations, a mandate established by President Gabriel Boric to face the current global economic scenario,” the Minister said. “The Caribbean has an important logistical potential, in addition to being one of the main sources of energy resources in the area. This region is developing, with many business opportunities and with a high interest in attracting sustainable investment that generates high-level technical jobs. At the same time, it presents opportunities for agro-industrial countries such as Chile because of its high volume of tourism.”
Recognizing Trinidad and Tobago as a leading player in the Caribbean, Minister Sanhueza also expressed Chile’s interest in furthering a bilateral trade relationship with the inclusion of other issues such as trade in services, trade and gender, digital economy, and MSMEs, among others.
Chile has a market size of 19.66 million persons and the highest per-person income (GDP per capita) in Latin America and belongs to the category of high-income countries according to the World Bank. The country therefore has a sizeable population with strong purchasing power. This new trade accord offers a strategic platform for manufacturers and exporters to deepen their footprint in Latin America and helps to position Trinidad and Tobago as a key trade hub within the Caribbean-South America corridor. This Agreement is the first PSTA being signed by Chile in the Caribbean and the first for Trinidad and Tobago with a South American nation.
Trinidad and Tobago’s Negotiating Team was led by His Excellency Colin Connelly, Ambassador Extraordinary and Plenipotentiary of Trinidad and Tobago to the Kingdom of Belgium and Trinidad and Tobago’s Chief Negotiator and Mr. Randall Karim, Permanent Secretary, Ministry of Trade and Industry and Trinidad and Tobago’s Deputy Chief Negotiator.
