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Chile Facing the Tariffs and Protectionism from the USA

By Osvaldo Rosales (El Mostrador)

HAVANA TIMES – The digital and energy transitions, AI, climate change, and the competition over new technologies and critical minerals will shape the coming decades. This scenario calls for a strategic vision from the Chilean Foreign Ministry, framed within a state policy—a vision that, so far, has yet to emerge.

The United States imposed a 12.5% tariff on 40% of our exports, in violation of a free trade agreement that for 22 years guaranteed tariff-and quota-free access, while US products entered Chile without restrictions and the United States consistently maintained a trade surplus.

The Free Trade Agreement (FTA) provides for a dispute-settlement mechanism based on cooperation, consultations, and mutually satisfactory agreements. One need only read it. Chapter XXII, Article 22.1, establishes that the parties shall endeavor to prevent and resolve disputes and make every effort to reach mutually satisfactory solutions. One party cannot impose tariffs unilaterally: consultations (22.4), good offices, conciliation, mediation (22.5), and, where appropriate, a panel (22.6) must first take place. The panel must issue an initial report (22.12) and, after appeals, a final report (22.15). Only if that final report determines that a violation has occurred would compensation or suspension be appropriate, and it must always be equivalent to the harm caused. None of this happened.

The White House cites alleged forced labor in its Chilean imports. The argument is crude and lacks documentation. Moreover, the FTA provides specific labor-related channels under the Labor Chapter (Chapter XVIII), including the Labor Affairs Council (18.4), the Labor Cooperation Mechanism (18.5), and Cooperative Consultations (18.6). By ignoring all these mechanisms, Trump is disregarding an agreement ratified by both governments and their respective........

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