# Argentina-Chile bilateral relations and trade tensions > Live situation record from CLSTR: https://clstr.news/situations/argentina-chile-bilateral-relations-and-trade-tensions > Updated: 2026-10-25T23:10:00.000Z. Sources: 2. Developments: 2. Diplomatic and economic tensions have emerged between Argentina and Chile regarding maritime routes and fiscal policy. Argentine Deputy Guillermo Michel introduced a legislative proposal to revoke bilateral agreements with Chile, specifically targeting the Treaty on the Promotion and Reciprocal Protection of Investments and the Convention for the Elimination of Double Taxation. This move seeks to remove tax benefits for Chilean companies in Argentina in response to Chile’s planned resumption of a commercial maritime route between Punta Arenas and the Malvinas Islands, which Michel described as a “lack of solidarity from Chile with the Malvinas cause.” Separately, both nations are pursuing domestic measures to address trade irregularities. Argentina is preparing an agreement with the Argentine Industrial Union to combat smuggling and under-invoicing, which reportedly causes US$ 2.3 billion in fiscal losses. This initiative focuses on monitoring digital platforms and utilizing technological tools to detect trademark fraud. Meanwhile, Chile’s Chamber of Deputies approved legislation to increase penalties for smuggling to protect agricultural production from biological threats and pests. ## Timeline ### 2026-10-25: Argentina and Chile advance measures to combat smuggling Argentina is partnering with industry to curb smuggling and digital under-invoicing, while Chile advances legislation to increase penalties for illegal imports that threaten agricultural health. 2 sources. https://clstr.news/cluster/argentina-and-chile-advance-measures-to-combat-smuggling ### 2026-10-09: Argentina proposes revoking Chilean corporate tax benefits Argentine Deputy Guillermo Michel proposed withdrawing from two bilateral treaties with Chile to remove tax benefits for Chilean companies following the planned resumption of a maritime route to the Malvinas. 12 sources. https://clstr.news/cluster/valparaso-region-ports-report-114-drop-in-august-cargo --- Cite as: Argentina-Chile bilateral relations and trade tensions. CLSTR, https://clstr.news/situations/argentina-chile-bilateral-relations-and-trade-tensions