On June 14,2024,local time,Chile’s Deputy Minister of International Economic Relations,Sanhueza,submitted an application for Chile to join the Regional Comprehensive Economic Partnership (RCEP).This marks that Chile is expected to become the first Latin American country to join the RCEP,which will have a significant impact on its economy.The Chilean Ministry of Foreign Affairs announced that during Sanhuezas visit to Indonesia,he met with Satvinder Singh,the Deputy Secretary-General of ASEAN responsible for economic community affairs,in Jakarta and submitted a formal application letter for Chile to join the RCEP.This move by Chile indicates its hope to further integrate into the global economic system and enhance its foreign trade competitiveness by joining the RCEP.

The Regional Comprehensive Economic Partnership Agreement (RCEP) is a free trade agreement initiated by ASEAN in 2012.It took eight years to be formulated by 15 members,including China,Japan,South Korea,Australia,New Zealand,and the ten ASEAN countries.On November 15,2020,the ten ASEAN countries,China,Japan,South Korea,Australia,and New Zealand officially signed the RCEP,marking the official launch of the free trade area with the largest population,the largest economic and trade scale,and the greatest development potential in the world.

According to the foreign trade report released by the Central Bank of Chile,in 2023,Chiles total exports to China were $37.449 billion,accounting for 39% of Chiles total exports,ranking first.The main export products were copper,cellulose,and fruits such as cherries and grapes.Chiles total imports from China were $19.83 billion,accounting for 23% of Chiles total imports,also ranking first.The main imported products were mobile phones,televisions,and automobiles.

RCEP officially took effect on January 1,2022,with the first batch of countries including six ASEAN nations (Brunei,Cambodia,Laos,Singapore,Thailand,Vietnam) and four non-ASEAN countries (China,Japan,New Zealand,Australia).On June 2,2023,RCEP came into effect for the Philippines,marking full implementation across all 15 signatory countries.

In the first quarter of 2024,the export value of Chiles non-copper lithium products was $12.337 billion.China remained Chiles largest export destination,with an export value to China of $3.618 billion,a year-on-year increase of 8.4%.The main export products to China included cherries,cellulose,iron,fresh plums,and iodine,accounting for 82% of the total export value of non-copper lithium products to China.Fernando Fernández,the director of the Chilean Export Promotion Bureau,said that these data reflect that China remains one of Chiles important export markets,and its market share is showing a continuous growth trend.

In the first quarter of 2024,Chile’s non-copper lithium product exports amounted to $12.337 billion,with China remaining its largest export destination.Exports to China totaled $3.618 billion,an increase of 8.4% year-on-year.The main export products to China included cherries,cellulose,iron,fresh plums,and iodine,accounting for 82% of the total non-copper lithium product exports to China.Fernando Fernandez,Director of the Chilean Export Promotion Bureau,said that these data reflect that China remains one of Chile’s important export markets,and its market share continues to increase.

Chiles application to join the RCEP aims to further promote its economic growth and foreign trade development by integrating into this largest free trade area in the world.The entry into force of the RCEP has reduced tariff barriers and increased market access among member states,which will bring more opportunities for Chiles exports.

After joining the RCEP,Chile can not only strengthen economic and trade cooperation with countries in the Asia-Pacific region but also attract more foreign investment by leveraging the extensive market of the RCEP.As the first country in Latin America to apply to join the RCEP,Chile shows its hope to enhance its international competitiveness through multilateral economic cooperation.

If Chiles application to join the RCEP is approved,it will open a new chapter in economic cooperation between China and Chile,as well as between Chile and other RCEP member states.Chiles accession will not only promote its own economic development but also inject new vitality into the RCEP.

Against the backdrop of a complex and changing global economic situation,enhancing the level of trade liberalization through multilateral cooperation is an important strategy for Chile to cope with global economic challenges.In the future,with Chiles active participation within the framework of the RCEP,its foreign trade and economic development are expected to welcome new opportunities and growth points.

The EU plans to impose a 25% tariff on Chinese electric vehicles,and a trade war is on the verge of breaking out!