Chilean government's sweeping reform bill advances in Congress

Despite the progress, cementing the bill into law could face obstacles. Opposition legislators said they would appeal the bill to the Constitutional Court, challenging the legality of certain provisions. The government is also considering vetoing some of the adjustments made by the legislature.

The reform package includes a reconstruction plan for the Valparaiso, Nuble, and Biobio regions following devastating wildfires in January. Other measures include property tax exemptions for seniors and expense reimbursements for projects previously blocked for environmental reasons.

The Confederation of Production and Commerce (CPC), Chile's main business lobby, endorsed the bill, saying it provides certainty for investors and simplifies regulations.

J.P. Morgan described the law in a report as the "most important political catalyst" for the local stock market this year. However, consultancy Teneo warned that the polarized debate could lead to a "contentious implementation process."

Environmental groups have criticized the bill, specifically provisions that ease the relocation of salmon farming concessions. In a statement, 18 organizations called the move a strategy to "privatize" natural resources without adequate technical analysis or environmental assessment.