Chile has also concluded bilateral „supplementary economic agreements“ with Bolivia, Peru, Venezuela, Argentina, Ecuador, Colombia and Mercosur, as well as a partial agreement with Cuba. As a founding member of the Pacific Alliance trade bloc, Chile has taken advantage of the agreement to develop its trade relations with important players in the region, each with a coast with the Pacific. The objective of this agreement is to improve cooperation and integration between its Member States in order to develop the economy of each of its members. The other members of this agreement are Colombia, Peru and Mexico. This agreement creates a healthier and more competitive business environment for businesses in the Member States. 8. (return) Inter-American Development Bank (IDB). Integration and Trade in the Americas: Periodic Note, December 2000. Washington, D.C, p.
14. In the 1990s, Chile became famous for controlling capital inflows, a policy aimed at limiting the real appreciation of the Chilean peso, which can cause large capital inflows. According to some, this policy has helped Chile avoid the problem of currency overvaluation, which has contributed to several financial crises in developing countries during this decade. Chile`s main policy of controlling portfolio capital, known as Ley de Encaje, was abandoned in 2001. While in force, however, it has raised concerns about the U.S. position, which favors the free flow of investment-related transfers and payments, which has become a standard position in both U.S. Bilateral Investment Agreements (NTBs) and other free trade agreements. 2738 also amends the INA to include Chilean nationals as E-1 contract traders and E-2 contract investors. . . .