Policy Networks and Business Participation in Free Trade Negotiations in Chile

Abstract

AbstractWithin Latin America, Chile is distinguished by its stable trade policies and rapid negotiation of trade agreements with countries and regions all over the world. Explanations for these phenomena often point to the stable pro-free trade coalition established in the aftermath of the shock-therapy pursued in the 1970s, and Chile's professional government bureaucracy. Although both of these elements are important, this article shows how the rapid integration of Chile into the world economy has also depended on the existence of business associations with expertise on trade issues. Through the process of integration, a close policy network has evolved between key public officials and business representatives. This is premised on the mutual recognition of expertise in the public and private sectors, and is held together by close personal networks of loyalty and trust across the public-private divide. However, while the development of such a policy network has been highly favourable to the process of negotiating trade agreements, it has also contributed to the de-facto exclusion of societal actors that have less to contribute to trade negotiations than business sectors.