Five fishing companies have filed or plan to file indemnification lawsuits against the Chilean state for nearly $600 million, stemming from quota changes in a 2025 law. The legislation altered the distribution of fishing quotas between industrial and artisanal sectors, impacting licenses under Law 20.657 from 2013. President José Antonio Kast's government has chosen to reform the existing statute instead of pursuing a new general fishing law.
A bill introduced in September 2024 and enacted in June 2025 aimed to break a deadlock in discussions for a new general fishing law, prompted by alleged corruption in prior legislative proceedings. Dubbed the fishing quota fractionation law, it redistributed quotas between industrial and artisanal fishing across various fisheries nationwide.
Upon promulgation, President Gabriel Boric stated: “quienes estamos en política, somos empleados del pueblo. No de las grandes empresas o los poderes fácticos” and that “esta ley se enmarca (...) en algo que es de la esencia de nuestro proyecto político (…), que es la riqueza para quienes la producen”. The companies claim indirect expropriation, as the law impacts licenses securing quotas until 2032 under Law 20.657, infringing property rights and imposing unequal burdens without compensation.
La Tercera reported that five fishing companies have already filed indemnification claims or will do so soon, totaling around $600 million. Industry players had foreseen the need for compensation during legislative debates.
Recently, President José Antonio Kast's administration withdrew a parallel bill for a new fishing law, favoring amendments to the current statute. The case underscores the need for legal certainty in long-term economic regulations.
