Negotiations with the US begin: Foreign Ministry and trade unions meet ahead of USTR visit in August

The Chilean government, through the Ministry of Foreign Affairs, initiated bilateral negotiations with the United States aimed at excluding specific Chilean products from new tariffs imposed by Washington under the pretext of forced labor. The discussions took place during a meeting with industry representatives affected by these measures, which apply a 12.5% tariff on Chilean goods. The talks were held in preparation for the upcoming visit of the U.S. Trade Representative (USTR) delegation to Chile in August. The meeting was led by Foreign Minister Francisco Pérez Mackenna, who emphasized the need to ensure Chile is excluded from these measures that affect over 99% of U.S. imports. He noted that Chile has an active Free Trade Agreement (FTA) with the United States and stressed the importance of resolving this issue through direct dialogue. According to officials, the negotiations will focus on securing the exclusion of approximately 45 Chilean products from the U.S. tariffs. The goal is to have these items included in the "Annex A" of the U.S. investigation into forced labor practices. Paula Estévez, head of the Subsecretaría de Relaciones Internacionales (Subrei), confirmed that the negotiations began following high-level meetings led by Pérez Mackenna during his recent visit to the United States. She stated that Chile has already submitted detailed product lists and economic information to demonstrate how these goods complement rather than compete with U.S. production. Estévez added that the USTR’s deputy, Jeffrey Goettman, is expected to arrive in Chile by late August to continue the discussions. In parallel, local trade organizations are working closely with government authorities to support the negotiation process. These groups include representatives from the fruit, salmon, forestry, and agricultural sectors, all of whom are directly impacted by the U.S. tariffs. Officials reiterated that the U.S. measures are part of broader changes in American trade policy and are not targeted specifically at Chilean exports. Industry leaders have estimated the potential financial impact of the tariffs. Iván Marambio, representing the Chilean Fruit Exporters Association, projected losses of up to $400 million due to the increased costs on fresh fruit exports. Patricio Melero, president of SalmonChile, estimated losses could reach $500 million, citing a university study supporting his claim. Antonio Walker, president of the National Agricultural Society (SNA), highlighted the significance of U.S. markets for Chilean agriculture, noting that exports reached $13.5 billion in 2025 alone. Including forestry and aquaculture, total food and fiber exports could surpass $30 billion annually. Rafael Ide, president of the Corma International Relations Committee, explained that Chilean wood products, such as finished lumber and moldings, are complementary to U.S. manufacturing rather than competitive. He argued that these materials are essential for maintaining competitiveness in North American construction industries. Ide expressed hope that successful negotiations would benefit the forestry sector, particularly small-scale timber producers who contribute significantly to rural employment. As the negotiations progress, both sides remain focused on achieving mutually beneficial outcomes. The outcome of these talks will determine whether Chilean products can avoid the additional costs associated with the U.S. tariffs, potentially safeguarding millions of dollars in annual exports. The arrival of the USTR delegation in late August marks a critical phase in these ongoing efforts.