At long last, Senate ratifies U.S.-Chile tax treaty in effort to boost bilateral trade

June 22 (UPI) -- On Thursday the U.S. Senate voted to ratify the U.S.-Chilean tax treaty after it had gone more than 10 years without a floor vote.

Sens. Josh Hawley, R-Mo., and Rand Paul,R-Ky., were the lone no votes on the treaty, which was signed in 2010 but had gone without a floor vote in the Senate since 2012.

Senate Majority Leader Chuck Schumer, D-N.Y., lauded the agreement and cited Chile's vast lithium reserves a reason for ratification.

"Chile is the home to the world's largest lithium reserves, the precious metal used in emerging technologies like iPhones, EV batteries, and renewable energy storage," Schumer said. "So, as the world races to advance clean energy technologies, Chile will be a critical ally for anyone looking to lead the way."

Proponents of the treaty have said that it will boost investment between the countries and reduce withholding tax rates on interest payments and royalties paid by Chile.

U.S. Chamber Executive Vice President and Chief Policy Officer Neil Bradley said Thursday that the Chamber of Commerce supported the treaty.

"Recent changes to Chilean tax law threatened to hike tax rates for U.S. firms while sparing companies headquartered in the two dozen countries -- from China to Europe and Latin America -- with which Chile already has tax treaties in place," Bradley said. "Today's actions will not only strengthen a bilateral trade and investment relationship that supports tens of thousands of good jobs in the U.S. and Chile but also serves as a clear example of how the Senate can work across party lines to deepen our nation's ties with a key ally."