From Maritime Routes to Digital Ones

The close ties of friendship, culture, and trade that exist between the United Kingdom and Chile are based on the rich maritime history shared by our two nations. From the glorious efforts of Vice Admiral Lord Cochrane and the Chilean Navy during the War of Independence in the early 19th century to the large cargo ships transporting goods between our markets today, these ties are deep and strong. As a Member of Parliament for Portsmouth, the heart of our Royal Navy, and as an honorary captain of the British Naval Reserve, I am particularly proud of this maritime history. In fact, I had the pleasure of working with the Chilean Navy in a previous role as Minister of the Armed Forces, so I know how important this relationship is for our two countries, along with the many other economic and cultural links we share.

And as the United Kingdom charts a new course as an independent trading nation, we want to strengthen and diversify this crucial trade partnership in the coming years. Increasing trade ties between us, whether through the maritime routes that cross the oceans or the electronic pathways of the global digital economy, is of great importance to both nations. This is reflected in the fact that Chile was the first country in the world to sign a free trade agreement with the United Kingdom following our exit from the European Union. Chile is our third largest trading partner in the LATAC region, with a value of £1.6 billion in 2020, and our two economies are closely linked across a range of sectors, from infrastructure to health and financial services. British and Chilean companies are working together in the cutting-edge sectors that are shaping the world of tomorrow, from technology to telecommunications.

However, trade between our nations could and should be greater, and it is vital that we work hand in hand to unlock this shared potential. Our commitment to combating climate change is an area where we can leverage momentum, with key mining and energy sectors in Chile seeking cleaner technologies as they grow. And as Europe’s number one technology hub, the United Kingdom has much to offer.

British companies are already undertaking renewable energy projects here, including Actis Group, Turner & Townsend, and Power Naturals, partnering with Chile to achieve its goal of generating 70% of its energy from renewable sources by 2040. British and Chilean companies are also collaborating in the health and life sciences sector, such as BUPA, which is now the largest UK investor in Chile. Just yesterday, I launched a study between the British Embassy in Chile and BUPA to analyze the impact of climate change on health in the country. During the Covid-19 pandemic, these partnerships have become even stronger. Last year, for example, we supported AstraZeneca in launching clinical trials for vaccines in the Chilean market, and since then Chile has requested an initial supply of four million doses. And as the largest financial center in Europe, with the lowest corporate tax rate in the G7, and world-class science and innovation sectors, the United Kingdom also offers key business opportunities for Chilean companies.

Looking ahead, an important step to boost trade with Latin America is for the United Kingdom to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership [TPP-11]. This would help stimulate trade-driven growth in both the United Kingdom and Latin America, removing barriers between our markets and providing new opportunities for greater collaboration.

As we enter a new and exciting era for global trade, the United Kingdom and Chile can work together to forge even stronger ties across the Atlantic. Embracing the bright future that lies ahead for us as like-minded trading nations looking towards the oceans as we always have. Seizing the opportunities that this promises to bring.

Penny Mordaunt
Minister of International Trade of the United Kingdom