Chile and Hong Kong (China) Consolidate Their Framework of Legal Certainty for Capital Flows Under Their Investment Agreement

In the context of deepening economic relations with the Asia-Pacific axis, the Agreement for the Reciprocal Promotion and Protection of Investments (ARPPI) between the Republic of Chile and the Hong Kong Special Administrative Region (China) remains a fundamental pillar for capital attraction. This treaty, originally signed on October 18, 2016, and in force since May 23, 2019, operates independently and is not integrated into the Free Trade Agreement (FTA) currently in effect between both parties, thus constituting a specialized and exclusive regulatory framework for the governance of investment flows.

This legal instrument establishes high-standard international disciplines, ensuring key principles such as national treatment, most-favored-nation treatment, and transparent mechanisms for investor-State dispute settlement (ISDS). Under the protection of these regulatory guarantees, a secure and predictable business environment has been fostered, facilitating the channeling of foreign direct investment into highly complex sectors such as financial services, logistics infrastructure, and the digital economy—areas where Hong Kong positions itself in alignment with its status as a premier global financial center.

The overall balance of this agreement’s application reaffirms the strategy of ALADI member countries to institutionalize their financial ties with Asia’s main investment platforms. Maintaining this robust legal framework not only safeguards bi-regional assets but also projects a platform of economic stability and predictability necessary for the development of long-term industrial and commercial projects between South America and East Asia.

País: Chile

Fuente: General Secretariat of ALADI, based on information from the Latin America-Asia Pacific Observatory.