On Dec. 11, 2002, the United States concluded negotiations on a free trade agreement (FTA) with Chile, the first such arrangement with a South American country. The U.S. – Chile Free Trade Agreement entered into force on January 1, 2004. This agreement provides America’s farmers, ranchers, food processors, and the businesses they support with improved, and in many cases, new access to Chile’s market of 15 million consumers. This comprehensive agreement calls for duty-free access on all products and addresses other trade measures for both countries.

Before the agreement … U.S. pork faced import tariffs of 6 percent in Chile. Without preferential access, U.S. pork was at a disadvantage to specialty products (e.g. Parma ham) from the European Union. Chile imports mostly high-value, processed pork products. U.S. pork and other meats were restricted due to differences in meat inspection regulations.

With the agreement … Chile immediately eliminated tariffs on pork and processed pork products upon implementation of the agreement. The United States gained parity with the EU, creating the opportunity to capture greater market share and develop the Chilean market for future growth.

In addition, with the implementation of this agreement, Chile determined that the U.S. meat inspection system is equivalent to theirs.

Before the agreement … The U.S. had a zero duty on pork cuts, and processed pork products faced a tariff of 1.4 cents/kg.

With the agreement … The U.S. tariff on processed pork products was immediately eliminated.