Chile: Business Leaders Urge Government Action on Security & Economic Growth (March 2026)

The new administration in Chile, led by President José Antonio Kast, is prioritizing security as a cornerstone of its policy agenda. This focus is particularly crucial for sectors like commerce, tourism, and services, all of which are heavily impacted by levels of public safety and the prevalence of illicit economic activity. A recent statement from the Cámara Nacional de Comercio, Servicios y Turismo de Chile (National Chamber of Commerce, Services and Tourism of Chile) underscores the private sector’s willingness to collaborate with the government to address these challenges and restore a sense of security for workers, consumers, and visitors.

A key component of the emerging strategy centers on combating the expansion of illegal trade, often linked to organized crime. This illicit activity not only undermines legitimate businesses but also erodes public trust and disrupts community life. The Chilean government’s commitment to reclaiming public spaces and bolstering law enforcement and intelligence capabilities is seen as essential to re-establishing a secure environment conducive to economic growth. The issue of security is not merely a matter of public order, but a fundamental prerequisite for sustainable development, attracting investment, and fostering employment opportunities.

Addressing the Rise of Illicit Trade in Chile

The proliferation of illegal commerce in Chile presents a significant threat to the formal economy. According to the National Chamber of Commerce, this illegal trade frequently operates in neighborhoods and urban centers, creating an environment of instability and displacing businesses that adhere to legal regulations. The chamber’s president, José Pakomio, emphasized the necessitate for decisive action to recover public spaces and strengthen the capacity of police and intelligence agencies to effectively combat this issue. This echoes concerns raised by businesses across the country regarding the impact of unregulated markets on their bottom lines and the safety of their employees and customers.

The government’s “Plan Barrido Total” (Total Sweep Plan), unveiled in July 2025, outlines a multi-pronged approach to tackling illicit trade. A central tenet of this plan is the immediate confiscation and destruction of illegal goods, particularly those posing health risks or linked to criminal networks. Currently, bureaucratic delays in the judicial process often allow seized merchandise to re-enter circulation or remain in storage for extended periods, creating opportunities for criminal organizations to reclaim their products. Retired General Enrique Bassaletti, a member of Kast’s security team, explained that the proposed changes aim to streamline this process, ensuring swift destruction with proper documentation – including audiovisual records and sample custody – to prevent the recovery of illicit goods. La Tercera reported on these proposals in July 2025.

Leveraging Technology to Combat Criminal Networks

Beyond immediate confiscation and destruction, the “Plan Barrido Total” also emphasizes the use of technology to disrupt criminal networks. Specifically, the administration intends to deploy Artificial Intelligence (AI) to detect and dismantle smuggling rings and illegal trading operations. This technological approach aims to enhance the efficiency of law enforcement agencies by identifying patterns and connections that might otherwise go unnoticed. The use of AI in this context represents a growing trend in law enforcement globally, as authorities seek to leverage advanced analytics to combat increasingly sophisticated criminal activities. The details of how this AI system will be implemented and the specific data sources it will utilize remain to be fully disclosed.

The plan also calls for intensified monitoring of borders, streets, and markets. This increased surveillance is intended to disrupt the flow of illegal goods and deter criminal activity. The effectiveness of this strategy will depend on the allocation of sufficient resources to law enforcement agencies and the implementation of robust data collection and analysis protocols. The government will need to address potential concerns regarding privacy and civil liberties associated with increased surveillance measures.

The Role of the Private Sector

The Cámara Nacional de Comercio, Servicios y Turismo de Chile has expressed its strong support for the government’s initiatives and pledged to collaborate in their implementation. Pakomio stated that the private sector is prepared to contribute its expertise and resources to ensure the success of these measures. This collaboration could take various forms, including providing intelligence on illegal trading activities, participating in public awareness campaigns, and supporting the development of training programs for law enforcement personnel. A strong partnership between the public and private sectors is considered crucial for effectively addressing the complex challenges posed by illicit trade.

The business community recognizes that a secure environment is essential for attracting investment and promoting economic growth. Cities perceived as safe and secure are more likely to attract both domestic and foreign investment, leading to job creation and increased economic activity. A safe and secure environment is vital for the tourism industry, as visitors are more likely to choose destinations where they feel confident in their personal safety. The Chilean National Tourism Board has consistently highlighted safety as a key factor in attracting international tourists.

Potential Challenges and Considerations

While the “Plan Barrido Total” represents a bold attempt to address the issue of illicit trade, several challenges and considerations remain. One potential obstacle is the need for legislative changes to facilitate the immediate destruction of seized goods. As Bassaletti noted, current legal procedures can be cumbersome and time-consuming, allowing illegal merchandise to re-enter the market. Successfully navigating the legislative process and securing the necessary approvals will be critical to the plan’s effectiveness.

Another challenge lies in ensuring that the implementation of the plan respects fundamental rights and freedoms. Increased surveillance and law enforcement powers must be balanced with the need to protect privacy and civil liberties. Transparency and accountability will be essential to maintain public trust and prevent abuses of power. The government will need to establish clear guidelines and oversight mechanisms to ensure that these measures are implemented fairly and effectively.

addressing the root causes of illicit trade will be crucial for achieving long-term success. Factors such as poverty, inequality, and lack of economic opportunities can contribute to the growth of illegal markets. Investing in social programs and economic development initiatives can help to address these underlying issues and reduce the incentives for engaging in illicit activities. A comprehensive approach that combines law enforcement measures with social and economic reforms is likely to be the most effective strategy.

Looking Ahead

The Chilean government’s commitment to combating illicit trade and enhancing public safety represents a significant shift in policy priorities. The success of the “Plan Barrido Total” will depend on effective implementation, strong collaboration between the public and private sectors, and a commitment to upholding fundamental rights and freedoms. The coming months will be critical as the government seeks to translate its plans into concrete actions and demonstrate tangible results. The National Congress is expected to debate proposed legislative changes related to the confiscation and destruction of illegal goods in the coming weeks, with a vote anticipated before the end of the second quarter of 2026. Kast.cl provides further details on the proposed plan.

As Chile navigates these challenges, its experience will likely be closely watched by other countries grappling with similar issues. The innovative use of AI and the emphasis on public-private partnerships could serve as models for other nations seeking to combat illicit trade and enhance public safety. The ongoing dialogue between the government, the business community, and civil society will be essential to ensure that these efforts are effective, sustainable, and aligned with the values of a democratic society.

Key Takeaways:

• The Chilean government is prioritizing security and combating illicit trade through the “Plan Barrido Total.”
• The plan includes immediate confiscation and destruction of illegal goods, enhanced law enforcement, and the use of AI.
• Collaboration between the public and private sectors is seen as crucial for success.
• Addressing the root causes of illicit trade, such as poverty and inequality, is also essential.
• Legislative changes are needed to streamline the process of destroying seized goods.

We encourage readers to share their thoughts on this evolving situation and to engage in constructive dialogue about the challenges and opportunities facing Chile as it strives to create a safer and more prosperous future.