A free trade agreement aims to promote trade – usually with goods, but also sometimes with services – by making it cheaper. This is often achieved by reducing or eliminating so-called tariffs – taxes or taxes on cross-border trade. While free trade agreements are aimed at boosting trade, too many cheap imports could threaten a country`s producers, which could affect employment. The Chilean and British wine industries can benefit from this agreement and their importance in each other`s wine markets will increase. The Wine and Spirit Trade Association has confirmed that wine exports contribute nearly $19 billion to the UK economy, while supporting some 190,000 jobs. In addition, this means that cooperation between the United Kingdom and Chile will continue. Trade in goods and services between the United Kingdom and Chile has increased by an average of 9% per year since the provisional implementation of the agreement in 2003. The UK`s exports to Chile have increased by an average of 16% per year since the beginning of the agreement, with a total export increase of 351%. The European Union`s free trade agreement contributes to EU growth: in 2018, the EU was the world`s second largest exporter (15.5%) before the United States (10.6%) China (15.8%).  Trade agreements also aim to abolish quotas, to limit the quantities of goods that can be traded.
Although British Prime Minister Boris Johnson insists that an agreement must be reached by 15 October, no agreement has been reached. This agreement protects intellectual property rights and the maintenance of preferential market access for trade in services. This means that expansion or investment in Chile or the UK will always be as attractive as before. As companies continue to enjoy preferential market access, foreign investment will be able to benefit from the same incentives for investment in Chile. The UK and THE EU are negotiating a trade deal that is expected to start on 1 January 2021, when the new UK-EU relationship will begin. During the Brexit negotiations between the EU and the UK, there were concerns about the lack of agreement on the terms of withdrawal and the fact that the UK would hastily leave the EU without any deal (the initial scenario of Brexit without a deal). With this result a possibility, the United Kingdom secured a pure trade agreement with Norway and Iceland, which would only be valid after an exit without an EU agreement. Since the UK agreed on conditions in November 2019 and ratified the Brexit withdrawal agreement and left the EU at the end of January 2020, the deal has become obsolete and will therefore not enter into force. To date, more than 20 of these existing agreements, covering 50 countries or territories, have been shaken up with the exception of the I.V. and will begin on 1 January 2021.
Based on 2018 figures, this represents about 8% of total trade in the UK. But it is clear that new agreements with some countries will not be ready in time. The geographical indications of the United Kingdom, including “cross-border geographical indications” relating to the territory of Northern Ireland and the Republic of Ireland, are protected in this agreement: the UK Government has the powers to deal with international trade agreements and agreements, as well as the right and power to enact legislation on all matters relating to parliamentary sovereignty. , but the UK government will generally seek approval from the Devolved Parliament (s). where areas conflict with issues in agreements. Decentralized jurisdictions, regardless of their ability to legislate, no new trade agreement can begin until the transition is complete.