Is The Answer in The East? Trade Agreements with East Asia as an Opportunity for Latin American Exports: The Case of Chile

Abstract

Trade Agreements (TAs) are instruments crafted and implemented by policymakers with the aim of enhancing trade between countries or regions/economic blocs. In this study, a gravity model was utilized to estimate the effects within a panel of 165 countries, examining Chilean exports across total, agricultural, and manufacturing sectors. The findings largely align with theoretical expectations: the presence of FTAs tends to bolster Chile’s exports to partner nations, with a more pronounced effect observed for FTAs. Notably, FTAs with South Korea, China, and Japan have facilitated trade growth exceeding the average increase, both across total exports and within the manufacturing sector. Additionally, the FTA with South Korea has shown significant growth in agricultural exports compared to exports to other countries.