Chile and the TPP (Transpacific Partnership)

Chilean Foreign Policy still on the ongoing path of FTA's and open economy.  Chilean Exterior Minister, Mr. Heraldo Muñoz - together with all 11 countries' representatives - signed the TPP in Auckland, New Zealand on February 3rd.  Chilean Foreign Minister, Mr. Heraldo Muñoz announced the TPP - a mega-treaty comprising 12 Asia-Pacific rim countries like Japan and including the USA  -   was a turning point in the global economy, as this mega-bloc accounts for 40% of global GDP and 800 million consumers worldwide.

Mr Muñoz explained that the TPP will be in force once the 12 member countries have ratified the treaty in their local senate houses.  A heated debate is expected during these 2 years. There are already some antagonistic voices claiming the TPP will severely affect Chilean interests, in particular, the terms agreed on patents and pharmaceuticals claiming the local taxpayer will be forced to pay much more for medical drugs,  but Mr. Muñoz signaled those sensitive interests were properly safeguarded.  The 12 member states will have to go through considerable debate in their respective Senates to ratify the treaty, especially in the American Senate, once Obama leaves office.  What is important to mention here is that Chile already had a BIT with America dating back from 2004 and pharmaceuticals had been negotiated at the time.  The first approach between Chile and America on the TPP negotiations ended in Chilean refusal on the treaty but negotiations prospered to the point that pharmaceutical companies agreed to the 5-year patent rights instead of 8 years as originally proposed by these companies. 

Get more  information on the negotiations to come ahead ; the controversy and the deal itself