In order to consolidate the strategic ties between Brazil and Chile, both countries signed on July 24, 2020 a Memorandum of Understanding aimed at bilateral cooperation in the area of telecommunications and the digital economy.
The document provides an action in strategic areas such as the Internet of Things (IoT), 5G, artificial intelligence, applications, digital connection, telecommunications infrastructure, connectivity and data flow.
This memorandum was signed by the Foreign Ministers of Brazil and Chile, Ernesto Araújo and Teodoro Ribera Neumann, respectively, via videoconference.
Given the current global economic landscape, several countries around the world are interested in implementing similar agreements in order to develop and boost the commercial success of technology ever more, establishing cooperation among countries that have solid and historical trade relations towards an inclusive digital economy.
The technology market in general works to develop increasingly friendly and uniform environments to its main business pillars that are connectivity, artificial intelligence, cloud, computing and applications, which can be quickly leveraged on scale through 5G technology.
It is in such scenario of digital development that we can see the importance of the document signed by Brazil and Chile, showing how both countries are also interested in exploring new technologies and boosting a new economic growth movement.
The signing of this agreement could strengthen and expand the regional market, with the convergence of the Pacific Alliance and Mercosur digital agendas, as well as connect the regional market to other continents, especially aiming at the relationship with the Asia Pacific region, through the future construction of fibre optic submarine cabling.
Moreover, this relationship will be even stronger with the approval of the free trade agreement signed in 2018, already approved by the Chilean Senate and in progress in the Brazilian Congress. The agreement, which aims to improve investment conditions between the two countries, provides, among other issues, the elimination of international roaming tariffs between the two states.
The joint innovation between Brazil and Chile demonstrates the strategic nature of the relationship and the firm willingness between the Brazilian and Chilean governments to continue working and collaborating with each other to promote economic prosperity in Latin America.
This article is merely informative and does not replace the professional consultation that a lawyer can offer. For further information on the topics included in this newsletter and the benefits of the commercial relationship between Brazil and Chile, please contact us.
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