Chile in final phase of negotiations to reach trade deal with US, Chilean official says
August 26, 2025
SANTIAGO, Aug 26 (Reuters) – Chile is in the final phase of negotiations with the office of the United States Trade Representative (USTR) over tariffs, Chile’s undersecretary of international economic affairs Claudia Sanhueza told Reuters on Tuesday.
Chile is the world’s largest copper producer and copper cathodes are already exempt from U.S. tariffs. Sanhueza said President Donald Trump’s administration currently had low tariff rates on other exports from the Andean nation.
See history of agreement:
https://ustr.gov/trade-agreements/free-trade-agreements/chile-fta
EU-Chile Agreements:
Towards the EU-Chile Advanced Framework Agreement
The EU-Chile Association Agreement (in force since 2003) has been modernised through two parallel legal instruments: the Advanced Framework Agreement (AFA), and an Interim Trade Agreement (ITA).
Both legal instruments were signed on 13 December 2023. The European Parliament gave its consent to them on 29 February 2024.
The ITA entered into force on 1 February 2025. It will be repealed and replaced by the AFA once the latter enters into force.
The negotiating directives for the modernisation of the existing EU-Chile Association Agreement were first adopted by the Council in November 2017, setting out the scope of the negotiations. The EU and Chile concluded the modernisation negotiations on 9 December 2022.
The EU-Chile Interim Trade Agreement deepens the trade and investment relationship between the EU and Chile. It removes most the remaining trade tariffs on goods, facilitates increased trade in services, and makes it easier for small companies to do business.
The ITA includes a new chapter on trade and sustainable development. The commitment to sustainable trade practices covers climate change, energy, the environment, raw materials, disaster risk reduction, and sustainable food systems. The agreement also includes social issues such as labour rights, gender equality, and responsible business conduct.
While the ITA is now in force, the AFA will enter into force when all EU Member States have completed their respective ratification processes. The ITA will then cease to exist and will be replaced by the AFA.
- EU-Chile Interim Trade Agreement enters into force (Press Release, 1 February 2025)
- EU signs trade and political agreements with Chile (Press Release, 13 December 2023)
Summary governmental history:
Chile’s government history includes its transition from Spanish colonial rule to independence in 1818, followed by periods of political instability, including civil wars and military dictatorships, notably the 1973 coup d’état led by General Augusto Pinochet. Since the return to democracy in 1990, Chile has developed a stable political system with regular elections and a multiparty framework. Wikipedia Freedom House
Impact of El Niño on Chile 2026:
The ECMWF SEAS5 seasonal forecast issued in May projects a consolidating El Niño through the second half of 2026, with sea surface temperature (SST) anomalies exceeding +2 °C by October. For Chile, the signal matches the classic fingerprint: warmer winter and spring in the north and the Andes, and above-average precipitation in south-central Chile from August onward.
What El Niño is — and why it matters
The El Niño–Southern Oscillation (ENSO) is the dominant source of interannual climate variability over the tropical Pacific. It manifests as anomalous SST warming in an ocean stripe —the Niño 3.4 region— that shifts global atmospheric circulation and reshapes rainfall, temperature and storm patterns far from the tropics.
Chile is especially responsive. During El Niño events central Chile tends to see wetter winters and the cordillera often accumulates more snow than usual, translating into greater water availability for the following agricultural season and hydro generation. Conversely, northern Chile and the altiplano often face drier summers and stronger heatwaves.
The operational implication is direct: anticipating the ENSO phase lets you reposition planning choices months ahead —irrigation schedules, reservoir policy, wildfire preparedness, logistics sizing — in sectors where the gap between wet and dry outcomes is measured in very large sums.
https://aiqlim.com/en/blog/el-nino-2026-chile.html
Glacier melt in Andes:
Andes Meltdown: New Insights Into Rapidly Retreating Glaciers
Using satellite data, scientists are documenting the inexorable melting of South America’s glaciers and ice fields, with Andean glaciers thinning by nearly three feet a year since 2000. The loss of ice poses a threat to water supplies and agriculture from Bolivia to Chile.
https://e360.yale.edu/features/andes-meltdown-new-insights-into-rapidly-retreating-glaciers
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