UK, Chile sign agreement on continuity of bilateral trade after Brexit: UK government

The United Kingdom and Chile have signed an agreement guaranteeing the continuity of their bilateral trade relations after London's withdrawal from the European Union, the UK government's Department for International Trade said in a press release.

"This trade continuity agreement will see British businesses and consumers benefiting from preferential trading arrangements with Chile after we leave the European Union," the press release, published late on Wednesday, read.

The agreement is expected to promote a boost in the UK-Chilean trade, which made 1.8 billion pounds ($2.36 billion) in 2017, having surged by 11 percent year-on-year.

"The agreement also protects intellectual property rights and maintains preferential market access for trade in services. It will also allow British and Chilean companies to bid for some public sector contracts in each other's countries, helping to create jobs and deliver better value for taxpayers," the Department for International Trade added,.

The UK Wine and Spirit Trade Association praised the agreement, saying that it would enable protection of the UK wine industry, which provides around 190,000 jobs.

"Today we have signed an important trade continuity agreement as we prepare to leave the European Union. This will ensure there is no disruption to British business exporting to Chile after we leave the EU and will mean consumers continue to benefit from low prices and more choice on supermarket shelves," UK International Trade Secretary Liam Fox said, stressing that the agreement would "allow trade to continue as freely as it does currently."

The agreement will come into effect either in January 2021, when the Brexit transition period ends, or on March 29 if the United Kingdom withdraws from the European Union without a deal.

The United Kingdom is set to leave the European Union on March 29. The two sides have reached a withdrawal deal. However, it has not yet been approved by UK lawmakers, prompting fears of a no-deal Brexit both in Brussels and in London.