The recent change in Chile’s diplomatic representation in Germany opens an opportunity to redefine one of Chile’s most relevant economic relationships in Europe. Following the period of Ambassador Magdalena Atria during the government of President Boric, Roberto Ruiz will take office as the new ambassador under the administration of President Kast.
The previous diplomatic management was marked by an agenda centered on the energy transition, the promotion of a Feminist Foreign Policy, as well as issues of gender equality and human rights. While these pillars reflected legitimate priorities, the truth is that several strategic aspects of the bilateral economic relationship remained less developed than the current international context demands.
In this context, the new ambassador Roberto Ruiz will have the opportunity and responsibility to reorient the bilateral relationship toward an active economic diplomacy that allows for attracting investment, generating technology transfer, and consolidating strategic projects in key sectors.
To this end, there are at least five areas where diplomatic action should concentrate with special priority.
First: Convey progress regarding “permisología” (permitting processes).
One of the main criticisms from European investors has been the excessive slowness in the processing of investment projects. In this sense, the new ambassador must play an active role in communicating the progress of the new Sectoral Permits Law and the future implementation of a digital single window that will reorganize hundreds of administrative authorizations.
Second: Rebuild legal confidence for foreign investment.
Attracting German capital, particularly for megaprojects in mining, energy infrastructure, and green hydrogen, requires a solid and predictable institutional framework. Clear rules from the start allow for long-term financial planning, without which it is not possible to develop large-scale projects.
Third: Unblock the Double Taxation Convention between Chile and Germany.
The absence of this agreement remains one of the greatest obstacles to German investment in the country. Currently, the effective tax burden for German capital can reach a figure higher than the OECD average, which significantly reduces Chile’s competitiveness compared to other jurisdictions that do have active agreements.
Fourth: Support from local actors:
Economic diplomacy cannot operate in isolation. Coordination with the private sector will be fundamental. In this sense, the Chilean-German Chamber of Commerce and Industry (AHK Chile) will continue to be a key actor in reducing entry risks, facilitating reliable information, and connecting German companies with concrete opportunities in the Chilean market.
The challenge for the new Chilean ambassador to Germany will be clear: to move from a declarative diplomacy to an active economic diplomacy that allows for converting this historical relationship into a concrete platform for investment, technological development, and cooperation between both countries.
Fernando Acuña
Lawyer
Director Acuña-Silva Rechtsanwälte
