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SFRC Chairman Menendez Celebrates Historic Approval of the Chile Tax Treaty to Protect and Promote U.S. Foreign Direct Investment in Chile

This treaty is critical to protecting and growing U.S. foreign direct investment in Chile, a strong ally, and expanding U.S. economic engagement with the region more broadly.

WASHINGTON – U.S. Senator Bob Menendez (D-N.J.), Chairman of the Senate Foreign Relations Committee, today issued the statement below following the Senate Foreign Relations Committee’s approval of the Convention between the Government of the United States of America and the Government of the Republic of Chile, otherwise known as the Chile Tax Treaty. Approved by a vote of 20-1, the Treaty represents a historic step forward United States-Chile bilateral relations and United States investment in Latin America.

“Today’s historic vote is yet another recognition of the enduring partnership between the United States and Chile. As we celebrate 200 years of partnership between our two countries, working to advance shared economic objectives has never been more essential.  

“I believe this treaty is vital to strengthening U.S. competitiveness and growing U.S. foreign direct investment in Chile, a strong democratic partner. The treaty enjoys strong support from the U.S. business community and is a crucial tool for effectively enforcing U.S. tax laws. Moreover, as the People’s Republic of China continues its aggressive economic practices in the Americas and seeks to monopolize critical mineral supply chains, this treaty is especially critical to diversifying supply chains.

“Chile continues to be a vital U.S. partner as we work together to foster prosperity and promote security throughout the Western Hemisphere for years to come and I look forward to new opportunities through implementation of the Chile Tax Treaty to collaborate on these shared objectives. I am committed to working with my colleagues in the Senate to secure full approval of the Treaty, and with partners in Chile and with the Chilean American community to build on this strong foundation and strengthen our nations’ ties for generations to come.”

Background on the Chile Tax Treaty:

The treaty would reduce double taxation and withholding rates and is generally consistent with the U.S. Model Tax Treaty. If ratified, this tax treaty will only be the third U.S. tax treaty with a Latin American country. The U.S. business community has long urged the Treasury Department to expand our tax treaty network in the region. It has three times before been reported out of Committee prior to today, most recently in 2022.