Chile and Argentina deepen trade ties

Argentina is consolidating its position as one of Chile’s main trading partners in South America, as agricultural and fresh produce exports gain a stronger foothold in bilateral trade
CHILE-ARGENTINA

Chile and Argentina are entering a new phase in their economic and trade relationship, with an agenda that includes issues of particular relevance to the agri-export sector, such as trade facilitation, sanitary and phytosanitary measures, technical barriers to trade and the development of regional value chains.

These topics were addressed during the 4th Administrative Commission of the Chile-Argentina Trade Agreement, held in Santiago and chaired by Chile’s Undersecretary for International Economic Relations, Paula Estévez, and Argentina’s Undersecretary for International Economic Negotiations and Integration, Roberto Salafia.

The meeting is particularly significant for Chilean agriculture, given that in 2025 the country’s exports to Argentina reached US$1.066 billion, up 26% year on year. Among the products contributing to this growth were avocados, lemons, seeds and fresh grapes, alongside salmon products and copper wire.

Sanitary and phytosanitary issues take centre stage

During the Commission, both delegations reviewed a wide range of issues linked to the implementation of the bilateral agreement, including trade facilitation, sanitary and phytosanitary measures, technical barriers to trade, public procurement, trade in services, telecommunications, SMEs, global and regional value chains and labour matters.

For the agricultural and fresh produce sectors, the sanitary, phytosanitary and trade facilitation chapters are particularly important, as they directly affect the conditions under which food, agricultural products and plant material can move between the two markets.

The meeting was preceded by talks between Estévez and Salafia, who also discussed other strategic areas of the bilateral relationship, including energy integration, air transport, mining and border facilitation.

Bilateral trade nearly doubles in five years

The meeting also provided an opportunity to review the rapid expansion of trade between both economies.

According to figures from Chile’s Undersecretariat for International Economic Relations (SUBREI), bilateral trade has almost doubled over the past five years.

Trade between the two countries stood at US$3.926 billion in 2020, rising to US$7.931 billion in 2025.

These figures currently position Argentina as Chile’s fifth-largest trading partner worldwide and its second-largest in South America.

The commercial relationship is supported, among other instruments, by the Economic Complementation Agreement No. 35 between Chile and Mercosur, in force since 1996, and the Chile-Argentina Trade Agreement, which entered into force in 2019 and broadened bilateral relations beyond traditional trade in goods.

New agreement on regional value chains

One of the main outcomes of the meeting was the conclusion of negotiations on a new Memorandum of Understanding on Global and Regional Value Chains, Productive Linkages and Foreign Direct Investment, which is expected to be signed shortly.

The instrument is intended to deepen complementarity between the two economies and create new opportunities for companies from both countries to participate in regional and international production and trade chains.

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The two sides also agreed to continue developing work plans related to services, labour issues and the various cooperation mechanisms established under the agreement.

Estévez highlighted the current momentum in the bilateral relationship, noting the strong growth in trade and the broad scope for further cooperation. Referring to the new memorandum, she described it as “another major step in that direction”.

Growing relevance for Chilean agriculture

At the close of the meeting, Chile and Argentina agreed on the need to continue deepening economic integration in order to generate further opportunities for trade and investment and facilitate greater participation by companies from both countries.

For Chile’s agri-food sector, this agenda is becoming increasingly relevant due to the growth of agricultural and fresh produce exports to Argentina and the importance of issues such as plant health, border logistics and trade facilitation for the competitiveness of these shipments.

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