trade agreement

The Indo-Chilean Chamber of Commerce and Culture reports on a week filled with significant diplomatic, cultural, and economic developments between Chile and Indonesia. The central thread of these events is the strengthening of the historical ties between the two nations, despite the emergence of new challenges in the international trade sphere.

Highlighting the cultural interaction, the Chilean Navy's Training Ship "Esmeralda" docked in Jakarta for the first time in nearly three decades. The visit, filled with symbolism and emotion, included a special event at the inclusive Cempaka Putih "Republic of Chile" school in Jakarta. Students had a unique opportunity to experience live Chilean music, learn the traditional Chilean dance, the cueca, and engage in a cultural celebration with the ship's crew.

After five days in port filled with cultural exchange activities, the "Esmeralda" concluded its visit to the Indonesian capital on July 17. The ship now sets sail east towards the west coast of Australia, where it is expected to arrive in the second week of August.

In the economic arena, Indonesia is positioning itself as a competitor for Chilean copper in the United States. U.S. President Donald Trump announced a trade agreement with Indonesia, reducing tariffs on its imports from 32% to 19%. Trump negotiated directly with Indonesian President Prabowo Subianto, describing the deal as "historic".

This new trade agreement has sparked discussions within the Chilean National Congress. The Mining and Foreign Affairs Commissions of the Chamber debated the potential impacts of the new 50% tariff on copper imports to the U.S. The tariff, announced by Trump, aims to establish a dominant national industry aligned with the magnate's protectionist ambitions to stimulate employment.

Despite these new challenges, the Indo-Chilean Chamber of Commerce and Culture remains confident in the enduring and irreplaceable ties between the two nations. The Chamber emphasizes the importance of these historical connections in navigating the shifting currents of international trade and diplomacy.

• Chile e Indonesia celebran su vínculo histórico con una visita cultural y naval (Elmostrador.cl)
• Buque Escuela (BE) “Esmeralda” termina su paso por Yakarta e inicia su navegación a Sidney | Armada de Chile (Armada.cl)
• Indonesia se posiciona como un competidor más para el cobre chileno en Estados Unidos | Periodismo Chileno (Periodismochileno.cl)
• ¿Buena o mala señal para Chile? Trump anuncia acuerdo con Indonesia: “Tiene un cobre de muy buena calidad que utilizaremos” | Diario Financiero (Df.cl)
• Trump anuncia acuerdo comercial con Indonesia - La Tercera (Latercera.com)
• "Somos irremplazables en el corto plazo": Comisiones de Minería y RREE de la Cámara enfrentan arancel para exportar cobre a EEUU (Eldesconcierto.cl)

The Chilean-Indonesian Chamber of Commerce brings to light the key events shaping the economic landscape of Chile. This week's focus is on agricultural threats, cherry exports, and the signing of a significant trade agreement.

Agricultural Threats: The beginning of 2025 saw a potential threat to Chile's agricultural sector. A group of Argentine tourists, attempting to enter Chile, were found carrying fresh vegetables infested with fruit fly larvae, a dangerous pest that threatens the country's crops. The Agricultural and Livestock Service (SAG) seized and analyzed the vegetables, confirming the presence of the pest. The SAG had previously launched a nationwide campaign to eradicate the fruit fly, releasing sterile insects to reduce reproduction and imposing a fruit quarantine around detected outbreaks.

Cherry Exports: The cherry industry in O'Higgins is looking to the Chinese New Year to help reverse a decline in prices. Despite an expected increase of 50.5% in exports for the 2024-2025 season, the market has faced significant price drops in China, which receives 92.4% of the exports. The Pacific South Terminal in Valparaíso reported an increase of 66% in the total tons of cherries moved during the 2024-2025 season, compared to the previous one.

However, not all export news was positive. The Atacama Region experienced a 4.5% year-on-year decrease in exports in November 2024, according to a report from the National Institute of Statistics (INE). The mining sector, which primarily exports copper and iron, was most affected by this decline.

Trade Agreement: Chile is on the verge of signing a trade agreement with Singapore, the third strongest economy in Southeast Asia. The Chilean Chamber of Deputies approved the Free Trade Agreement signed between the Pacific Alliance countries and Singapore. This agreement is expected to bring significant benefits to the Alliance and Chile, promoting trade, technology and knowledge transfer, foreign investment, export diversification, and the generation of productive chains.

The Office of Agricultural Studies and Policies (Odepa) reported that the agricultural trade balance grew by 27% in 2024, reaching US$ 11.756 billion. This growth is attributed to the significant demand for Chile's product offerings in international markets, as well as the country's favorable phytosanitary conditions.

• Picudo rojo, mosca de la fruta y gripe aviar: Plagas amenazan con llegar a Chile por los viajeros (Eldesconcierto.cl)
• Empresas exportadoras de cerezas en O'Higgins miran al Año Nuevo chino para revertir caída de precios (Eltipografo.cl)
• EN NOVIEMBRE DE 2024, LAS EXPORTACIONES DE LA REGIÓN DE ATACAMA DISMINUYERON 4,5% INTERANUALMENTE – Tierramarillano – Noticias de Atacama y Chile (Tierramarillano.cl)
• Odepa: Balanza comercial silvoagropecuaria creció 27% en 2024 – Simfruit (Simfruit.cl)
• Terminal Pacífico Sur de Valparaíso finalizó temporada de exportaciones de cerezas 2024-2025 – Simfruit (Simfruit.cl)
• Chile ad portas de firmar acuerdo con Singapur, la tercera economía más fuerte del sudeste asiático (Eldesconcierto.cl)