Evaluating the impact of the Chile-China Free Trade Agreement and its tariff reductions on Chilean trade performance

Abstract: This paper examines the impact of the Chile-China Free Trade Agreement (FTA) on Chile’s trade performance using a descriptive and comparative analytical approach. Since its entry into force in 2006, the Chile-China FTA has reshaped bilateral trade relations and positioned China as Chile’s main trading partner. While existing literature has largely focused on econometric estimations of free trade agreements, this study contributes by providing an integrated descriptive analysis of macroeconomic and trade indicators before and after the agreement. Using official data from international and national sources, the paper analyzes the evolution of Chile’s GDP, total trade flows, bilateral trade with China, sectoral export and import patterns, and trade balance dynamics. The findings show a significant expansion of bilateral trade volumes, notable sectoral concentration in Chilean exports to China, and an increasing role of China in Chile’s overall trade balance. The paper offers policy-relevant insights into the role of free trade agreements in shaping trade outcomes for developing economies. Keywords: Bilateral trade; Chile; China; Free Trade Agreement; International trade; Trade balance; Trade liberalization; Trade performance. Title: Evaluating the impact of the Chile-China Free Trade Agreement and its tariff reductions on Chilean trade performance Author: Alvarado Pizarro, Diego International Journal of Novel Research in Marketing Management and Economics ISSN 2394-7322 Vol. 13, Issue 1, January 2026 - April 2026 Page No: 29-36 Novelty Journals Website: www.noveltyjournals.com Published Date: 29-April-2026 DOI: https://doi.org/10.5281/zenodo.19882252 Paper Download Link (Source) https://www.noveltyjournals.com/upload/paper/Evaluating%20the%20impact%20of%20the%20Chile-China-29042026-3.pdf