Updated June 15, 2023
Chile: An Overview
Chile, located along the Pacific coast of South America,
Nevertheless, Latinobarómetro polls since the mid-1990s
traditionally has been one of the United States’ closest
have shown a majority of Chileans to be dissatisfied with
partners in Latin America. In 2023, the two countries are
the results of the post-Pinochet policy consensus. Inequality
commemorating 200 years of official relations and the 20th
remains high in comparison to other Latin American
anniversary of their free trade agreement. Over the past
countries and Organization for Economic Cooperation and
year, the Biden Administration has sought to collaborate
Development members, and many Chileans still lack
with Chilean President Gabriel Boric on regional
economic security and access to quality public services.
democracy, human rights, migration, and security concerns.
Chileans have registered their discontent through repeated
However, internal challenges may limit Chile’s ability to
electoral swings and mass protests. In late 2019, for
take on new responsibilities or exert its influence abroad.
example, protests against a transit fare increase in Santiago,
accompanied by widespread vandalism, arson, and looting,
Figure 1. Chile at a Glance
spiraled into nationwide demonstrations against inequality
and the Piñera administration’s heavy-handed response.
Constitutional Reform
In an effort to restore peace and respond to demands for a
new social contract, the Piñera administration and
legislators from across the political spectrum agreed to hold
a plebiscite on whether to replace the Pinochet-era
constitution. The plebiscite passed with the support of 78%
of voters, and in May 2021, Chileans elected a
constitutional convention in which predominantly left-of-
center independents held a plurality of seats. After a year of

deliberations, the convention approved a sweeping 388-
Sources: CRS Graphics; Instituto Nacional de Estadísticas;
article draft constitution that would have enshrined
Latinobarómetro; International Monetary Fund; Trade Data Monitor;
numerous individual and social rights, significantly
and Ministerio de Desarrollo Social y Familia.
expanded the government’s role in social service provision,
and modified some government institutions. Voters rejected
Political and Economic Environment
the new constitution by a margin of 62% to 38% in a
Chile has a long democratic tradition but experienced 17
September 2022 referendum, after some prominent center-
years of authoritarian rule after a 1973 military coup led by
left leaders aligned with the Chilean right in characterizing
General Augusto Pinochet deposed the democratically
the proposed changes as too radical.
elected socialist government of President Salvador Allende
(1970-1973). More than 3,200 people were killed or
In January 2023, amid continued public support for some
“disappeared,” and some 38,000 people were imprisoned
constitutional reforms, Chile’s congress appointed a 24-
and/or tortured during the Pinochet dictatorship. Chile
member committee of experts to produce a revised
restored democracy in 1990, following a 1988 plebiscite.
constitution. In May 2023, Chile held national elections for
a constitutional council whose 50 members are to finalize
Center-left and center-right coalitions dominated Chilean
the new draft. Modified rules for electing delegates,
politics for three decades following the transition. Center-
together with shifts in public opinion, resulted in right-of-
left coalitions held the presidency and majorities in Chile’s
center parties gaining a majority of council seats. A
bicameral congress for most of that period, but Sebastián
referendum on the second draft constitution, which
Piñera led his center-right coalition to power for two
observers expect will be shorter and more limited in scope
nonconsecutive presidential terms (2010-2014, 2018-2022).
than the rejected version, is scheduled for December 2023.
Both coalitions largely maintained the market-oriented
economic framework inherited from Pinochet while
Boric Administration
implementing consensus-based reforms to gradually expand
Gabriel Boric was inaugurated to a four-year presidential
the social safety net. Living standards improved
term in March 2022, a decade after rising to prominence as
significantly following the restoration of democracy, with
a leader of Chile’s student movement. Leading the left-
real GDP growth averaging 4.5% per year between 1990
wing Apruebo Dignidad coalition, he defeated right-wing
and 2019, according to the International Monetary Fund
populist José Antonio Kast with 56% of the vote in a
(IMF), and the poverty rate falling from 68.5% to 8.6%
December 2021 runoff election. Boric pledged to address
between 1990 and 2017, according to the Chilean
environmental concerns and usher in a new era of economic
government, using its current methodology.
and social inclusion by strengthening the public education
and health care systems, replacing the privatized pension
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Chile: An Overview
system, improving working conditions, and expanding the
Economic Analysis, the accumulated stock of U.S. foreign
rights of historically marginalized groups.
direct investment in Chile stood at $22.6 billion in 2021,
with significant investments in the mining, manufacturing,
Advancing that agenda has proved challenging. Many of
and finance sectors. A bilateral treaty (Treaty Doc. 112-8)
Boric’s proposed policies were closely tied to the rejected
designed to encourage investment in both countries by
constitution. Others have stalled in the Chilean congress,
preventing double taxation was ratified by Chile but has
where Boric must negotiate with centrist and opposition
been awaiting the advice and consent of the U.S. Senate
legislators. Although the congress has enacted measures to
since 2012. In June 2023, the Senate Foreign Relations
increase mining royalties, raise the minimum wage, and
Committee reported the treaty favorably, with two
reduce the work week from 45 to 40 hours, it voted down a
reservations and two declarations (Ex. Rept. 118-1). H.Res.
revenue-raising tax reform intended to fund much of
487 would express support for ratification of the treaty.
Boric’s agenda in March 2023. The Boric administration
also is contending with a resurgent right, which has
The United States and Chile have differed on relations with
capitalized on the failure of the first constitutional reform
China, which is Chile’s top trade partner and accounts for
process and widespread public concern over rising crime
32% of Chile’s total trade (nearly double the U.S. share).
and immigration to boost its support.
Chile joined the Belt and Road Initiative in 2018, upgraded
its free-trade agreement with China in 2019, and joined the
Boric’s political challenges are compounded by difficult
China-backed Asian Infrastructure Investment Bank in
economic circumstances. Significant fiscal and monetary
2021. U.S. officials have expressed concerns about Chile’s
stimulus propelled the Chilean economy to 11.7% growth
deepening ties to China, particularly with respect to the
in 2021, following a pandemic-driven 6.1% contraction in
growing presence of Chinese firms in Chile’s strategic
2020. Growth slowed to 2.4% in 2022, however, due to the
sectors, including its telecommunications infrastructure.
withdrawal of stimulus measures, rising inflation, and
domestic and geopolitical uncertainty. The IMF projects
Foreign Affairs and Defense Cooperation
these factors will tilt the economy into recession in 2023,
President Boric’s approach to foreign affairs has
with a 1% contraction in GDP. These deteriorating
emphasized democracy, human rights, and peaceful dispute
conditions, combined with political setbacks, have shaken
resolution. He has spoken out against authoritarian
public confidence in Boric’s leadership. His approval rating
governance and human rights abuses around the world,
stood at 33% in mid-June 2023, down from 50% at the start
including in Nicaragua and Venezuela, as well as Russia’s
of his term, according to Chilean polling firm Cadem.
invasion of Ukraine. His government also has supported
U.S.-backed resolutions at the United Nations and
U.S.-Chile Relations
Organization of American States condemning such abuses,
Although the United States initially supported the Pinochet
while advocating for continued diplomatic engagement.
dictatorship, it also helped foster the restoration of
democracy in Chile. Since the political transition, the
In June 2022, Chile signed the Los Angeles Declaration for
United States and Chile have maintained close commercial
Migration and Protection, which recognizes migration
and defense ties and worked together to promote democracy
management as a shared responsibility and seeks to bolster
and human rights throughout the Western Hemisphere. In
regional cooperation. Migration has become an increasingly
November 2022, U.S. and Chilean officials met for a High-
contentious issue in Chile as the country’s foreign-born
Level Dialogue to design a roadmap for the bilateral
population has grown from 305,000 in 2010 to an estimated
partnership. They discussed efforts to promote democracy
1.5 million (7.5% of the population) in 2020. Most migrants
and human rights; advance sustainable and inclusive
are from Venezuela (34.2%), Peru (19.8%), Haiti (12.5%),
growth; strengthen security cooperation; and deepen
and Colombia (10.5%). The United States provided $10.9
collaboration on environmental conservation and health,
million to humanitarian organizations in FY2022 and $5.0
science, technology, and innovation. S.Res. 140, introduced
million in the first half of FY2023 to assist migrants,
in the Senate in March 2023, would commemorate the
asylum-seekers, and refugees in Chile.
bicentennial of U.S.-Chilean relations.
U.S. military assistance to Chile aims to enhance Chile’s
Trade and Investment Relations
contributions to international peacekeeping operations,
U.S.-Chile trade relations have grown considerably since
strengthen the capabilities of the Chilean armed forces, and
the U.S.-Chile Free Trade Agreement entered into force in
improve interoperability with U.S. forces. In FY2022, the
2004 (P.L. 108-77). Total bilateral trade in goods reached
United States provided $434,000 in International Military
$38.9 billion in 2022, a 20% increase compared with 2021
Education and Training (IMET) aid to Chile. The United
and a 72% increase compared with 2020, according to U.S.
States also completed the transfer of two C-130 Hercules
Department of Commerce data. U.S. goods exports to Chile
aircraft, valued at $24 million, to Chile under the Excess
amounted to $22.3 billion in 2022, with mineral fuels,
Defense Articles program. The Biden Administration has
machinery, and motor vehicles accounting for a majority;
requested $650,000 of IMET aid for Chile in FY2024
U.S. goods imports from Chile amounted to $15.6 billion,
(FY2023 allocations are not yet available).
with copper, fish, and fruit accounting for a majority.
Peter J. Meyer, Specialist in Latin American and Canadian
Chile’s open economy, strong institutions, and commitment
Affairs
to the rule of law have made the country an attractive
Ramon Miro, Analyst in Latin American Affairs
destination for investment. According to the U.S. Bureau of
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Chile: An Overview

IF10880


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