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Political Risk / Argentina

The Chile Connection

December 2006 | Ratings Update

Following a three-day union strike at gas fields in the south of the country, Argentina temporarily halted natural gas exports to Chile. The supply was, however, resumed after the Argentine government reached an agreement between the unions and the private companies operating the fields. While the suspension of exports did not have any economic repercussions for Chile, the country's heavy dependence on Argentine natural gas will remain a serious concern for the Chilean government. Similar incidents could even lead to a further deterioration in the already tense diplomatic relations between the two countries.

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