Chile and Peru Eye Economic Alliance Amidst Changing Trade Winds

As South America’s commercial environment shifts, Chile and Peru are exploring opportunities for collaboration, particularly with the rise of new infrastructure. This evolving landscape presents chances for these neighboring nations to boost their economies through strategic partnerships and joint ventures.

The Chancay Megaport and New Competitors

The emergence of the Chancay megaport in Peru has altered the competitive dynamics within the port and export sectors of South America. According to the **Chilean Pacific Foundation**, this development presents avenues for cooperation between Chile and Peru, despite the increased competition.

Iván Marambio, a board member of the **Chilean Pacific Foundation**, remarked on the shifting landscape, noting a change from previous years. He believes Peru has invigorated Chile, encouraging economic expansion.

“We have to work to promote in conjunction with our competitors, especially with Peru”, Suggesting that both countries could find ways to collaborate in key sectors for their economies.

—Iván Marambio, Board Member, Chilean Pacific Foundation

Last year, fruit exports from Chile to China topped USD 3.5 billion, which played a pivotal role in their economy’s growth. This year is forecasted to be even greater; Chile is expected to reach USD 101 billion in exports of goods, up 5.9% from last year (U.S. Department of Commerce, 2025).

Collaboration in Fruit Exports

The focus on fruit exports offers an opportunity for collaboration, according to Marambio. The possibility of Chile and Peru working together in this sector could lead to mutual gains. Both nations could capitalize on the available possibilities and increase their market reach.

Brazil, China, and the Rail Project

Brazil and China are currently considering the construction of a railway line connecting the Portuguese-speaking nation with Peru, which would extend to the **Chancay megaport**. This project aims to improve Brazil’s commercial routes and diversify its export options, especially from ports like Santos.

China’s involvement in this project aims to alleviate pressure on Brazil’s infrastructure. However, concerns about environmental impacts and local communities, specifically regarding the Amazon, still remain a challenge for China’s original proposals.

Historical Trade and Future Outlook

Trade between Chile and Peru has steadily grown, establishing itself as one of the most dynamic economic partnerships in South America. The Free Trade Agreement, enacted in 2009, has been key in removing tariffs and promoting the flow of goods and services, resulting in a total of USD 3,576 million in 2022.

Cooperation in infrastructure, such as the reopening of the Tacna-Arica border, and binational business meetings, have reinforced this relationship. These meetings have fostered negotiations in key sectors, including agri-food, sea products, and tourism. As **Chilean companies** exporters continue to grow, reaching a record 8,567 registered companies, the groundwork is being set for closer economic ties and greater regional prosperity.