Argentina-Relations With Chile: A Complex Evolving Partnership

Relations between Argentina and Chile, two most economically advanced countries in South America, have proven to be complicated and sometimes explosive throughout history. The cultural dissimilarity was and continues to be the main grievance between neighbors by geography. It has been stretched so thin by many other grievances that have given way to space for bilateral dislocation, which this article will address by looking intently at all the current issues between Argentina and Chile that incorporate major and minor, good and bad developments concerning politics, trade, technology, cultural exchange, and other areas of common interests.
Historical Background

Tortuous history between Argentina and Chile features conflicts and border disputes and competition for the influence in the region. The two countries fought the War of the Pacific to control the Atacama Desert and its rich deposits from 1879 to 1884. The dispute has since been resolved at the diplomatic level, but the two nations persist with an optically heralded cautiously maintained actor-actor relationship throughout the course of the twentieth century.

New Developments

In the last few years, Argentina and Chile have been making progress to improve their bilateral relations and strengthen it through mutual interest in regional integration and cooperation. Some of the most important positive developments would be:

1. Trade agreements: A new trade agreement between Argentina and Chile came into effect in 2023, focusing on boosting bilateral trade and reducing tariffs. The agreement, which is applicable as from January 1, 2024, has done away with tariffs for more than 90% of traded goods and services.
2. Energy cooperation: The two countries developed various energy projects, among them establishment of renewable energy sources and construction of a natural gas pipeline. In 2024, Argentina and Chile signed a Memorandum of Understanding (MOU) to promote cooperation in the development of hydrogen energy.
3. Cultural exchange: Programs and initiatives which focus on education and artistic collaboration have been launched towards building stronger cultural ties between Argentina and Chile. In 2024, the two countries aim at launching a joint cultural program explicitly set to foster mutual understanding and cooperation in the arts. The military dictatorships, which exercised most of their powers in Argentina and Chile between the '70s and '80s, served as a basis of affecting their bilateral ties; and on top of this, both countries were also carrying claims on the Beagle Channel, a strategic waterway in linkage to the Atlantic and Pacific Oceans. However, the dispute was settled in 1984 by papal mediation, while tensions continued regarding the subject.

Despite good intentions for a better future, the relationship between Argentina and Chile has its share of challenges:

1. Territorial disputes: The two nations continue to have pending border disputes since their common border is situated in the Andes mountains. As a way of resolving the issue, Argentina and Chile has agreed to establish a joint border committee in 2024.
2. Water resources: Argentina and Chile often quarrel over certain water resources including the Rio Grande and the Colorado River. The two countries entered into cooperation in managing the use of shared water resources in 2024.
3. Economic rivalry: Argentina and Chile have competed economically by way of trade, investment and tourism challenges. Both, however, agreed in 2024 to create an accord to form a joint economic commission for better cooperation and coordination on economic policy.

Regional Integration and Cooperation

Given that, Argentina and Chile have indeed been trying to integrate their region and collaborate in it. In the succeeding year, the two nations, along with Brazil, Paraguay and Uruguay, have joined each other in the signing of the Mercosur trading bloc – the future integration of the member-countries into an economic union.

1. Economic Relations

Argentina and Chile maintain an important economic relationship since the value of bilateral trade between the two countries surpassed $2.5 billion by the end of 2023. Both countries have sizeable investments in each other's economies, with Chilean firms actively investing in mining and energy in Argentina.

However, trade tensions have increased between both countries due to protectionist measures used by Argentina and the Chilean concern over Argentina's adherence to the regulations of the World Trade Organization. In order to discuss these contentious matters and increase cooperation in the area of trade policy, Argentina and Chile have now determined to constitute their common trade commission in 2024.

Energy Relations

Both Argentina and Chile have undertaken joint initiatives related to renewable energies and the construction of a natural gas pipeline. They signed, in 2024, an agreement to support their cooperation to jointly harness hydrogen energy. It lays the foundation of inter-institutional collaboration from hydrogen energy development standpoint to create suitable practices of sharing, exchange of technical know-how, and joint R&D stimulation.

Cultural exchanges

Both countries have facilitated numerous exchange programs between Argentina and Chile, namely education and the arts. In 2024, the two countries launched a joint cultural programme as an effort to better understand and cooperate with each other in the area of arts.

Such activities include residency programs for artists, cultural festivals, and exchanges in education. It also provides scope for the engagement of both governments with cultural exchange and understanding and collaboration and cooperation with artists, educators, and cultural institutes from both countries.

Tourism

The tourism sector is vital to Argentina and Chile, who have also sought mutual cooperation in this area. In 2023, Argentina consummated an agreement with Chile on the promotion of joint cooperation development in tourism infrastructure and the promotion of destinations.

Security Cooperation Agreements

Both countries came together on security issues such as counterterrorism, cyber security, and border safety measures. In this respect, the two countries ratified a security protocol in 2023 that can further ensure cooperation in the fight against organized crime and terrorism.

Cooperation in Environmental Matters

Argentina and Chile are cooperating widely in environmental aspects such as climate change, conservation, and sustainable development. In 2023, both countries signed an environmental pact that would include their joint works in terms of sustainable development and environment protection.

Summary

The Argentina-Chile relationship is definitely complex and rich, with some things to consider both positively and negatively. Side by side, the two countries are not short of efforts to foster their relations, but ongoing issues such as border disputes, water resources, and competition in the economy continue to plague their partnership.

It is through dialogue, cooperation, and mutual understanding that the neighboring nations will take a step toward remedying those complications. They can achieve more of that by deepening their trade integration, sharing energies, and promoting culture.

Acronyms

- Beagle Channel: A body of water which is used as a strategic waterway that connects the Atlantic, and the Pacific, and was fought over by countries like Argentina and Chile
- Mercosur: Regional trade bloc that includes Argentina, Brazil, Paraguay and Uruguay
- UNASUR: Also known as The Union of South American Nations, this includes Argentina and Chile along with other Latin American countries
- CELAC: A regional organization gathering Argentina, Chile and other Latin American and Caribbean countries.


Sources
https://en.wikipedia.org/wiki/Argentina%E2%80%93Chile_relations?wprov=sfla1
https://www.cancilleria.gob.ar/en/news/newsletter/another-step-forward-argentinas-bilateral-relationship-chile
https://www.scielo.org.mx/scielo.php?script=sci_arttext&pid=S0187-69612016000200085&lng=en&nrm=iso&tlng=en
https://www.cancilleria.gob.ar/en/news/newsletter/argentina-chile-cutting-edge-agreements
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