Brazil and Chile Accelerate $12.5 Billion Trade Corridor Project

Chilean President Gabriel Boric’s visit to Brazil this week put a spotlight on the $12.56 billion annual trade between the two countries, as both governments accelerate work on the Bioceanic Corridor.

This 2,400-kilometer highway aims to connect Brazil’s interior to Chilean Pacific ports, cutting shipping times to Asia and reducing dependence on the Panama Canal.

Bilateral trade reached $12.56 billion in 2024. Chilean exports to Brazil grew at 5% annually over five years to $4.4 billion, while Brazilian exports to Chile climbed to $8.68 billion.

The 2022 free trade agreement eliminated tariffs and modernized rules for e-commerce, small businesses, and roaming charges. Chile pledged $950 million for 22 infrastructure projects, focusing on port upgrades in Antofagasta and Iquique.

Brazil allocated $320 billion for regional connectivity, with the corridor’s Chilean segment fully funded. However, Brazil, Argentina, and Paraguay have not yet finalized financing for their sections, raising concerns about meeting the 2030 operational goal.

A Strategic Shift in South American Trade

The corridor could cut logistics costs for Brazilian exporters by 23%, especially for soy and mineral shipments to Asia. Chile’s mining sector expects more port activity, while Paraguay and Argentina anticipate job growth in transport.

President Boric stressed the project’s value in maintaining trade independence, echoing President Lula da Silva’s goal of balancing ties with China and the U.S.

Agricultural trade remains significant. In 2024, Brazil imported $704 million in Chilean forestry and fish products and exported beef and soybeans.

Recent talks focused on aligning food safety standards and expanding organic trade, though customs and border bureaucracy remain issues. Proposals for shared border controls and digital cargo tracking are still pending.

The Bioceanic Corridor also responds to competition from Peru’s Chancay port, reflecting Chile’s push to diversify trade routes as global supply chains shift.

With Pacific infrastructure investment up 40% in Latin America since 2022, the corridor could reshape regional commerce—if governments and businesses overcome funding and coordination challenges.