Mexico and Chile Deepen Trade Ties to Drive Investment

Summary: Mexico and Chile are strengthening their free trade relationship through updated rules of origin, enhanced trade data cooperation and efforts to develop regional and global value chains. The evolving partnership is also creating opportunities in high-value services, including technology, AI, engineering, fintech, sustainability and specialized industrial solutions, as Mexican companies increasingly seek Chilean expertise and both economies pursue deeper investment and economic integration.

Mexico and Chile are moving to deepen their trade and investment relationship as both countries seek to strengthen regional value chains, expand cooperation and create new opportunities for companies operating across their economies.

The two countries agreed on new measures during the 16th Free Trade Commission (CLC) meeting of the Mexico-Chile Free Trade Agreement (FTA), where officials reviewed bilateral trade and investment flows and identified areas for greater economic integration.

The meeting was led by Luis Gutiérrez, Mexico’s Undersecretary for Foreign Trade, and Paula Estévez, Chile’s Undersecretary for International Economic Relations. Discussions focused on improving the use of the existing trade agreement while identifying opportunities in investment, services, digital economy and regional and global value chains.

One of the main outcomes was the adoption of Decision No. 11, which transposes the agreement’s product-specific rules of origin to the 2022 version of the Harmonized System. The measure is intended to provide greater legal certainty to economic operators and facilitate compliance with the FTA’s provisions. 

Mexico And Chile Update Rules Of Origin

The rules-of-origin update provides a more current framework for determining the origin of goods traded under the agreement. This can help companies better understand the requirements for accessing preferential tariff treatment and reduce uncertainty in cross-border operations.

The decision is particularly relevant for manufacturers and companies integrating inputs from multiple markets. As production becomes increasingly distributed across regional supply chains, clear origin requirements can support businesses seeking to structure sourcing and manufacturing operations around existing trade agreements.

The Commission also discussed establishing a mechanism to exchange trade statistics. The initiative would allow both governments to assess how effectively companies are using existing agreements and generate information to support trade policy decisions.

Greater access to bilateral trade data could also help identify sectors where commercial opportunities remain underdeveloped. For companies, more detailed information on trade flows can provide a basis for evaluating potential suppliers, customers and investment opportunities in both markets.

The discussions reflect a broader effort by Mexico and Chile to move beyond the traditional administration of their FTA and use the agreement as a platform for deeper economic integration. 

Value Chains Create New Opportunities

The next phase of bilateral cooperation is expected to focus on identifying opportunities to develop global and regional value chains. The agenda includes technical and economic cooperation and greater use of the complementary productive capabilities of the two economies.

Estévez said the relationship, supported by more than two decades of free trade, has opportunities for further development in commerce, investment, services, the digital economy and value chains.

For companies, the combination of Mexico’s industrial base and Chile’s expertise in specialized services creates potential for partnerships that extend beyond traditional merchandise trade. The two economies can increasingly connect through technology, professional services, innovation and specialized industrial capabilities.

This shift is already visible in Chile’s growing services exports to Mexico. Marcelo Sobarzo, Director of the Chile Trade Commission in Mexico (ProChile), wrote for MBN that Chilean companies are increasingly exporting software, artificial intelligence, engineering, consulting, audiovisual production and technology development services to the Mexican market, 

Chilean service exports to Mexico reached US$93 million, while exports totaled US$50 million during 1H2026, representing a 26% increase from the same period a year earlier. The growth highlights rising Mexican demand for specialized knowledge and technology-oriented solutions. 

Services Expand Bilateral Investment Potential

The expansion of services adds another dimension to the Mexico-Chile economic relationship. While bilateral commerce has traditionally included products such as wine, salmon and fresh fruit, companies are increasingly looking toward higher-value services and technology-based solutions, said Sobarzo.

Chile’s service-export sector is supported by its digital infrastructure, skilled workforce, innovation ecosystem and network of free trade agreements, highlighted Sobarzo. Its companies are increasingly competing through specialization, flexibility and customized solutions focused on productivity, sustainability and technological innovation.

Mexico’s ongoing industrial and economic transformation is creating additional demand for these capabilities. Companies in manufacturing, mining, financial services, retail, agribusiness and health care are investing in digitalization, automation and sustainability, increasing the need for specialized technology and professional services.

Sobarzo explained that the two economies offer complementary advantages. Mexico provides industrial scale and access to North American value chains, while Chile offers expertise in areas such as mining services, fintech, food innovation, digital technologies and sustainability.

This complementarity could support joint projects and longer-term commercial partnerships as companies look for suppliers and strategic partners capable of supporting increasingly complex operations. 

Trade Cooperation Targets Broader Integration

The institutional framework established through the FTA provides a foundation for expanding these opportunities. ProChile is supporting Chilean companies entering the Mexican market through trade missions, business matchmaking and industry events designed to connect service providers with potential clients, investors and partners, explained Sobarzo.

The growing relationship also extends into sectors including mining, energy, health care, logistics, agritech and creative industries. These areas offer opportunities for companies to combine Chilean expertise with Mexico’s manufacturing capacity, domestic market and position within North American supply chains.

During the CLC meeting, officials also addressed regulatory, sanitary and phytosanitary matters of mutual interest. Progress in these areas can help reduce administrative barriers and facilitate trade for businesses operating across both markets.

Gutiérrez said Mexico and Chile are reaffirming their commitment to a more competitive and inclusive economic relationship by fully leveraging the FTA, strengthening cooperation and trade facilitation mechanisms, and creating conditions for greater opportunities for companies, workers and consumers.