Philippines Finalizes Landmark Trade Pact with Chile

MANILA, Philippines — The Philippines has concluded negotiations for a free trade agreement (FTA) with Chile, marking the country’s first free trade deal in Latin America. In a statement, the Department of Trade and Industry said the conclusion of negotiations for the Philippines–Chile Comprehensive Economic Partnership Agreement (CEPA) coincides with the celebration of the two countries’ 80th anniversary of diplomatic relations. The deal goes beyond traditional tariff liberalization by establishing a modern framework to strengthen cooperation in trade, investment and digital economy. It also includes commitments to sustainability, inclusivity and economic resilience as reflected in chapters on the environment, labor, global value chains, as well as trade and gender. The CEPA is expected to create new opportunities for collaboration across value chains, technology exchange, investments and the adoption of sustainable practices. At present, the Philippines exports electronics products, coconut products and personal care products to Chile. It imports copper ores and concentrates, salmon and other key products from Chile. Trade Secretary Cristina Roque welcomed the conclusion of the negotiations during her meeting with Chile’s Minister of Foreign Affairs Francisco Pérez Mackenna. Roque said the FTA with Chile is in line with the government’s commitment to expand the Philippines’ network of high-quality trade agreements to create new opportunities for Filipino businesses, workers, farmers, consumers and investors. Last year, Chile was the Philippines’ 51st trading partner, 49th export market and 48th import source. In 2024, Philippine imports from Chile more than doubled to $290.8 million from $103.4 million in 2023.