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Trade agreements with Chile
The UK has 2 Free Trade Agreements (FTAs) with Chile:
- the UK-Chile Association Agreement, henceforth referred to as the UK-Chile FTA, which entered into force on 1 January 2021
- the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a trade agreement including 12 countries (Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the UK and Vietnam) which entered into force between the UK and Chile on 15 December 2024
The UK-Chile FTA should be read in conjunction with the EU-Chile Association Agreement because the UK-Chile FTA incorporates provisions of the EU-Chile Association Agreement. The following Parliamentary Report provides information about significant differences between the two.
The UK-Chile FTA will remain in force alongside CPTPP. At times, you will need to specify which agreement you choose to trade under (notably when applying rules of origin), but benefits from either agreement will mostly apply automatically. Our guides attempt to highlight where businesses may need to make an explicit decision.
CPTPP entry into force and ratification
As of 24 December 2024, CPTPP is in force between the UK and:
- Australia
- Brunei
- Chile
- Japan
- Malaysia
- New Zealand
- Peru
- Singapore
- Vietnam
This means that the UK can access CPTPP provisions with said countries.
The following countries have not yet ratified the terms of the UK’s accession:
Canada and Mexico.
This means that the UK cannot yet access CPTPP provisions with those countries.
This guidance will be updated following each of the remaining countries’ ratification of the terms of the UK’s accession to CPTPP and will include when CPTPP will enter in force between the UK and the relevant remaining country.
Removing or reducing tariffs makes it less expensive to trade physical products between countries. Lowering tariffs also increases choice for businesses seeking to source inputs from other countries, such as ingredients, parts and materials.
The UK and the other CPTPP countries have committed to ensuring that custom procedures are predictable, consistent, and transparent to facilitate trade and minimise financial and administrative burdens for businesses. Predictable customs procedures can reduce the time and costs involved for businesses exporting products, particularly for small to medium-sized enterprises (SMEs).
Choosing which trade agreement to use
Most Favoured Nation (MFN) tariffs are applied by a country to imports from other countries, unless a free trade agreement or other preferential regime applies. In free trade agreements, countries can agree to lower tariffs or fully eliminate them; these are called preferential tariffs.
Having 2 agreements means UK businesses can select the agreement that most benefits their products, for example the agreement with the lowest preferential tariff or the more suitable rules of origin.
The UK being part of CPTPP does not replace the existing UK-Chile FTA which has applied since 2021.
You should assess whether it is more advantageous to use the:
- CPTPP tariff rate
- UK-Chile FTA tariff rate
- current MFN applied tariff rate
If you are exporting goods to Chile, you can use the Check How to Export Goods tool on GOV.UK where you can find useful information such as the current list of goods, tariff rates, what type of label you might need for your products and existing tariff rate quotas. There is also a step by step guide on how to export on GOV.UK. You can use this to find information about any additional requirements or necessary documentation when exporting your products.
If you are importing goods from Chile, you can use the Trade Tariff Look up tool on GOV.UK to find the current list of goods and duty rates. There is also a step by step guide on how to import on GOV.UK. Preferential rates for imports into the UK for CPTPP and any other UK FTA can also be found in the relevant implementing legislation. There are reference documents for each FTA on GOV.UK, providing detail on preferential rates.
You can also find the full list of preferential tariff rates under the CPTPP agreement, specifically 2-D Chile to be read alongside Chile’s commitments in Annex A to the Accession Protocol of the United Kingdom to CPTPP. Please note that this link directs you to the New Zealand Foreign Affairs and Trade Ministry which is the Depository for the CPTPP agreement text) and Annex 2-D the UK, and for the UK-Chile FTA, specifically Annex II.
It is a commercial decision for you to decide which agreement you will use. Importers and exporters have the option of selecting which agreement is best suited to them. In doing so, you should consider the tariff reductions provided by each agreement, and the ease of qualifying for preferential tariffs. For most products, the preferential tariffs are zero in both agreements.
Qualifying for preferential tariffs
To qualify for preferential tariff rates under trade agreements, your product must meet the relevant rules of origin. Please be aware that rules of origin requirements vary between agreements.
For more information, see our dedicated rules of origin guidance.
Using commodities codes
The UK and all other CPTPP members use commodity codes of the Harmonized System to classify products. A product code describes a specific product when importing or exporting goods. You will use this code on declarations and you can find the relevant UK product codes in the Trade Tariff Tool. Product codes are internationally harmonized only for the first 6 digits. You will need to identify the code used by the importing country.
You can find full guidance on how to find your commodity code.
Specific product codes and/or their definition can be different when exporting to different countries and can also change over time.
Examples of tariff liberalisation
Exports from the UK
Examples of products that may be exported to Chile at a 0% tariff rate under the UK’s agreements with Chile include:
Code | Product | MFN tariff (if you use no agreement) | UK-Chile Bilateral tariff | CPTPP tariff |
---|---|---|---|---|
3004.90.10 | Medicaments | 6% | 0% | 0% |
Code | Product | MFN tariff (if you use no agreement) | UK-Chile Bilateral tariff | CPTPP tariff |
---|---|---|---|---|
2106.90.90 | Food Prep n.e.c | 6% | Excluded | 0% |
Imports into the UK
Examples of products that may be imported from Chile at a 0% tariff rate under the UK’s agreements with Chile include:
Code | Product | UKGT tariff (if you use no agreement) | UK-Chile Bilateral tariff | CPTPP tariff |
---|---|---|---|---|
2204.21.98 | Wine | 17 GBP/hl | 0% | 0% |
Code | Product | UKGT tariff (if you use no agreement) | UK-Chile Bilateral tariff | CPTPP tariff |
---|---|---|---|---|
0210.99.39 | Meat in brine | 108 GBP/100kg | 0% | tariff rate quota (TRQ) |
Code | Product | UKGT tariff (if you use no agreement) | UK-Chile Bilateral tariff | CPTPP tariff |
---|---|---|---|---|
1008.50.00 | Quinoa | 30 GBP/1000kg | 21 GBP/1000kg | 0% |
Staged tariff reductions
In CPTPP, tariffs on some products are reduced gradually (staged) over an agreed number of years. Details of this can be found in the relevant CPTPP annexes. For imports into the UK, details can also be found in the CPTPP reference document. The table shows 2 examples of tariff lines where this applies to imports into the UK under CPTPP.
Year | Tariff |
---|---|
2025 | 19.60 GBP/100kg |
2026 | 16.80 GBP/100kg |
2027 | 14.00 GBP/100kg |
2028 | 11.20 GBP/100kg |
2029 | 8.40 GBP/100kg |
2030 | 5.60 GBP/100kg |
2031 | 2.80 GBP/100kg |
2032 | 0.00% |
2033 | 0.00% |
Year | Tariff | |
---|---|---|
2025 | 5.60% | |
2026 | 2.80% | |
2027 | 0.00% | |
2028 | 0.00% | |
2029 | 0.00% | |
2030 | 0.00% | |
2031 | 0.00% | |
2032 | 0.00% | |
2033 | 0.00% |
Tariff-rate quotas (TRQs)
If there is a TRQ for your product, only a limited amount (quota volume) can be imported at a zero or reduced rate of customs duty. If this limit is exceeded, a higher tariff rate applies. TRQs do not set any limits on the amount of product that may be imported, only the amount that can imported at a preferential rate.
To benefit from TRQs, a business or someone acting on their behalf for customs purposes must make a claim on the import declaration covering the release of goods to free circulation. It will not be applied automatically. Requirements for using a TRQ may differ between TRQs and between different agreements. You can find all available TRQs for a country and relevant requirements on the Check How to Export Goods tool. For details on TRQs applied by the UK under CPTPP, please see the CPTPP reference document.
Getting your products through customs
Clearing your products through customs
If you are exporting products from the UK into another CPTPP country, you can find more information on the step by step guide on how to export.
If you are importing any products into the UK from any other CPTPP country, you can check the step by step guide on how to import. For more information, including any required documentation.
Release of your products through customs
Under CPTPP, countries have agreed to offer simplified customs procedures that enable the efficient release of goods in a manner that aims to reduce costs for traders. These include:
- enabling traders to submit information electronically prior to the physical arrival of goods
- enabling goods to be released without temporary transfer to warehouses
- allowing the release of goods prior to the final determination of customs duties, taxes, fees, and charges
Provided the goods meet all the requirements, CPTPP countries aim to release your goods within 48 hours of arrival.
CPTPP countries also offer expedited customs procedures for express shipments, which means that such shipments will be released within 6 hours after arrival provided all customs documentation has been submitted.
Advance rulings
An advance ruling is a legally binding decision from a customs authority that a trader can request before importing or exporting their goods. Under CPTPP, countries have agreed to offer advance rulings on the tariff classification of the good, the origin of the good, and the value of the good. Countries have agreed to issue these rulings within 150 days and once issued, these rulings will be valid for a minimum of 3 years.
Advance rulings can save you money by giving you legal certainty over the tariff classification, origin, or value of your good before you move your good internationally as well as reducing the risk of your goods being denied preference.
You can view information on how to obtain an advance ruling in the UK.
Information on how to obtain an advance ruling in Chile is available on the Chile Customs website (please note that this website is in Spanish).
Customs authorities in the UK and the other CPTPP countries have created webpages to share information about import and export requirements digitally, providing you with relevant information instantly, that you can access on their websites.
For more information, you can view guidance on import and export requirements for the UK.
You can find more information on customs in Chile on their website, the Chile Aduanas Customs (please note that this website is in Spanish).
Department for Business and Trade support
The Department for Business and Trade (DBT) helps businesses export, drives inward and outward investment, negotiates market access and trade agreements, and champions free trade. Helpful links, tools and services available from DBT and wider government include:
Export Support Service (ESS) team
Get support on how to do business abroad. You may also be eligible for 1-2-1 support from a local International Trade Adviser. Businesses in Wales can also access support from Business Wales.
Export Support Service – International Markets (ESS-IM)
DBT's overseas in-market export support service for SMEs with high-export potential. Our International Market Advisers provide tailored support and market introduction information to new and current UK exporters looking to enter or expand into new markets. The service may be accessed globally with International Markets teams in South Asia, China, the Middle East, Africa, Eastern Europe, North America and Latin America.
Sign up to access free training on how to grow your international sales.
Information on finance and insurance for UK exports.
Trade and investment factsheets
The latest statistics on trade and investment between the UK and individual overseas partners.
Overseas business risk profiles
Information for UK businesses on political, economic and security risks when trading overseas.
Advice and warnings about travel abroad, including entry requirements, safety and security, health risks and legal differences.
Check or report a trade barrier
If you encounter an issue when exporting to any country – report the issue and UK government officials will be able to assess the issue and consider the options we have open to addressing it as appropriate
Search for your specific product to find applicable tariffs for each market, explore rules of origin and step-by-step help on customs procedures
Check import duties and allows you to check the status of available tariff rate quotas
Useful resources
You can find more information about export opportunities, business culture and any existing trade barriers on our Chile market guide.
Prior to export, you must be aware of local regulations and import conditions in Chile that apply to your goods or services. This can include tax considerations, labour laws, intellectual property rules, labelling and packaging regulations, among others.
To seek further information related to local regulations, business culture, or to find a local lawyer, translator, importer or distributor, you can use the following contacts:
- DBT’s Export Support Service International Markets team
- get in touch with DBT at the local British Embassy
- get in touch with the British Chamber of Commerce in Chile
To see information on political, economic and security risks when trading with Chile, please see: