The Senate on Thursday voted overwhelmingly to ratify the U.S.-Chilean tax treaty, putting a cap on a years-long journey through the upper chamber for the measure.
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 on four occasions in that time - 2014, 2015, 2022 and this year
Senate Majority Leader Charles Schumer (D-N.Y.) lauded the agreement earlier on Thursday and specifically pointed to Chile's vast lithium reserves as a chief driving force to cement the treaty. Chile is home to the world's largest lithium reserves 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," Schumer said.
"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. So, as the world races to advance clean energy technologies, Chile will be a critical ally for anyone looking to lead the way," he said.
The treaty was initially signed in 2010, but it has sat idle without a floor vote in the Senate since 2012. That is due to the consistent opposition of Paul, who has been concerned that provisions of the treaty would allow foreign tax authorities access to information on U.S. citizens.
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 Foreign Relations Committee passed it 20-1 earlier this month, setting it up for passage in the upper chamber.
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