Brazil and Chile forge landmark trade route agreement to connect South America with Asia: Video
To enhance trade connectivity and strengthen economic ties, Brazilian President Luiz Inácio Lula da Silva and Chilean President Gabriel Boric signed 19 agreements during Lula's state visit to Chile.
The primary objective of these agreements is to establish a land trade route linking South America with Asian markets.
During a press conference in Santiago, Chilean President Boric emphasised the historical friendship between the two nations, stating, “We have a historical friendship that is now concretely expressed in 19 agreements that have been signed. The task of those present here, ministers and state secretaries, is to implement these agreements to benefit the people we serve. We are not working for ourselves here; we work for our people. And that must always be in the mind of every instance we advance,” he is quoted by the AFP.
The proposed trade route is planned to start in southern Brazil, go through Paraguay’s Chaco region, and pass through Argentina’s provinces of Salta and Jujuy, before reaching northern Chile and its important ports at Antofagasta, Mejillones, and Iquique.
In a post on X, Brazilian President Lula highlighted the mutual benefits of this initiative, describing Chile as a gateway to Asian markets and Brazil to African markets. He stated, “Chilean businesspeople will have excellent opportunities to participate in major infrastructure and sustainability projects in the New PAC and the New Industry Brazil Programme. The New PAC includes two integration routes with Chile: the Capricorn Route, which will connect the state of Mato Grosso do Sul to Paraguay, Argentina and Chile, and the Porto Alegre-Coquimbo Corridor, which will connect the state of Rio Grande do Sul to Uruguay, Argentina and Chile. Chile could be the gateway for Brazilian products to the Pacific, and Brazil could fulfil the same role in providing Chilean exports to the African continent.”
