During the last meeting between the highest executive authorities of Chile and Brazil, many agreements were signed, among which was a memorandum of understanding (MoU) aimed at strengthening trade ties between the two countries. This agreement seeks to promote the internationalization of businesses, increase bilateral trade and investment flows, and collaborate on joint initiatives in third markets. Additionally, it commits to exchanging information and commercial intelligence, supporting export activity, and reducing regional inequalities, with particular emphasis on the inclusion of small and medium-sized enterprises and women-led businesses.

Benefits of the Agreement:

This agreement offers several concrete benefits for businesses in both countries:

• Access to new markets: It facilitates the entry of Chilean companies into the Brazilian market and vice versa, expanding their business opportunities.
• Support for SMEs and women-led businesses: Special emphasis is placed on the inclusion of small and medium-sized enterprises and those led by women, favoring their participation in exports.
• Exchange of information and commercial intelligence: The collaboration in market analysis and the exchange of data will allow companies to make more informed strategic decisions.
• Reduction of regional inequalities: It seeks to promote economic participation from different regions, contributing to more balanced development.

This agreement between the involved entities, namely Apex on the Brazilian side and ProChile on the Chilean side, is very welcome and demonstrates both countries’ capacity and interest in conducting business.

Challenges in Execution:

However, for this to be effective and dynamic, as markets are today, it is crucial to consider the challenges that have marked the implementation of similar agreements in the past between Chile and Brazil and to observe the mistakes to avoid hindering implementation for the same reasons.

For example, differences in bureaucracy and administrative procedures have led to significant delays in companies taking advantage of the agreed benefits. Additionally, the lack of efficient coordination between responsible institutions has hampered the practical execution of some initiatives. It has also been observed that despite good intentions, not all small and medium-sized businesses, and sometimes not even large ones, have fully accessed the opportunities generated.

A case that illustrates how these processes can take time to be effective is the bilateral agreement on international roaming between the two countries. From the moment it was signed until it began showing tangible results, more than 5 years passed (2018 to 2023), which highlights that the effectiveness of such agreements depends on persistence, coordination, and constant follow-up.

A successful example, however, is the Brazilian avocado, whose import requirements were published by SAG (Agricultural and Livestock Service) in October 2024, with approval obtained for importation in December of the same year, and the first shipment arriving in May 2025. This was celebrated at the Fruit Festival held at the Ritz Carlton Hotel on May 28, with the support of Abrafrutas and the Brazilian Embassy.

Promising Future:

Therefore, for the MoU signed between ProChile and Apex-Brazil to meet its objectives, it is essential to maintain constant and fluid contact between the institutions and actors involved, not only in the executive sphere but also in the agencies and secretariats responsible for day-to-day tasks. This includes establishing open communication channels, implementing clear monitoring and evaluation mechanisms, and offering ongoing training and support.

In conclusion, the memorandum of understanding represents a great opportunity to strengthen the commercial and investment relationship between Chile and Brazil. However, for its benefits to translate into tangible and sustainable results, it is essential to learn from past experiences and ensure active, coordinated, and transparent management of the agreement.

Raquel Frattini, Brazilian and Chilean lawyer, Director of Business Development at Chirgwin.