The Senate voted overwhelmingly this week to advance a tax treaty with Chile, more than a decade after the deal was first inked.
The treaty reduces taxes on Chilean investments and, in some cases, cuts the capital gains tax rate. It was initially reached in 2010 but was never ratified by the Senate.
But Senators approved it on Wednesday in a nearly unanimous vote. The sudden senatorial change of heart is likely due to the fact that Chile is home to massive deposits of lithium, an increasingly important mineral needed for technology.
Senate Majority Leader Chuck Schumer (D-N.Y) says it’s an important step to rival China’s influence over the industry.
Senators Josh Hawley (R-Mo.) and Rand Paul (R-Ky.) oppose the treaty, raising concerns it would give U.S. citizens’ information to a foreign tax authority. Paul has consistently opposed the treaty, forcing it to sit idle for 11 years. But Schumer says it’s consistent with other U.S. treaties.