The Senate voted 95-2 on the treaty, which first came up for consideration 11 years ago.
A two-thirds majority was needed for the treaty to pass. Sens. Josh Hawley (R-Mo.) and Rand Paul (R-Ky.) were the lone “no” votes.
In total, the Senate Foreign Relations Committee voted for it four times over more than a decade — 2014, 2015, 2022 and this year.
So why did it take so long to pass?
The treaty was initially signed in 2010, but it sat idle without a floor vote in the Senate since 2012 because of consistent opposition from Paul.
The Kentucky conservative has been concerned that provisions of the treaty would allow foreign tax authorities access to information on U.S. citizens.
Most senators, however, were eager to ink the deal amid a rush to secure crucial minerals for electric and computer chip components from friendly nations.
Chile is home to the world’s largest reserve of lithium — an essential component of battery manufacturing — and is the second-largest lithium producer.
“The U.S.-Chile treaty is consistent with other tax treaties we have with more than 60 countries, which boosts American competitiveness on the global stage,” Senate Majority Leader Chuck Schumer (D-N.Y.) said.
“As the world races to advance clean energy technologies, Chile will be a critical ally for anyone looking to lead the way,” he said.
According to proponents of the treaty, it will boost investment between the two countries.
Among other things, the treaty would drastically reduce withholding tax rates on interest payments and royalties paid from Chile and cut the Chilean capital gains tax rate in certain cases.
The Hill’s Al Weaver has more here.
