USTR Seeks Comment on U.S.-Chile Free Trade Agreement

Washington, DC, December 19, 2000 - The Office of the United States Trade Representative (USTR) published a notice of intent to conduct negotiations with the Republic of Chile on a bilateral free trade agreement. The USTR seeks assistance regarding the specific negotiating objectives for particular sectors, including asset management. Comments are due to the USTR by January 29, 2001.

In practice, the Chilean government generally permits U.S. firms to manage mutual funds and pension assets; Chile, however, has not entered into any trade agreements that contain market access commitments for asset management. Consequently, Chile has not provided a measure of legal certainty to U.S. firms doing business in that country and could diminish market access levels in the future.

The negotiation of a U.S.-Chile free trade agreement provides an opportunity to ensure that Chile commits to eliminating any barriers that prevent foreign firms from establishing and operating wholly owned affiliates, and that it does not impose regulatory requirements which deny effective market access to U.S. firms.