Presentation on theme: "CHILE Its Land, People and Business Opportunities."— Presentation transcript:
CHILE Its Land, People and Business Opportunities
BECAUSE IT’S A GENIUINE AND TRUSTWORTHY COUNTRY BECAUSE IT’S AN OPEN COUNTRY CONNECTED WITH THE WORLD FOR THE TREASURES THAT ARE PRESENT IN ITS DIVERSITY OF LANDSCAPES AND NATURAL RESOURCES WHY CHILE?
Vast mineral wealth World capital of astronomy The development of unconventional renewable energies NORTHERN REGION EXPLORING CHILE AND ITS RICH DIVERSITY CENTRAL REGION The largest number of inhabitants Concentration of the business sector The country is among the eight largest wine producer in the world SOUTHERN REGION Large natural reserve of biodiversity and resources Salmon, mussels, dairy products, livestock and agricultural products Sustainable cultivation of forests for wood industry
Agreements in force Agreements signed EFTA South Korea United States European Union Japan India P-4 China Australia Peru Cuba Panama Vietnam Malaysia Turkey Ecuador Central America Mexico Canada Mercosur Venezuela Bolivia Colombia Thailand 63% Of the global population 93,8% Of our export markets 85% Of global GDP A COUNTRY OPEN TO THE WORLD: 24 trade agreements with 62 countries Source: DIRECON ECONOMY AND FOREIGN TRADE
Fuente: Inteligencia Comercial ProChile, con cifras del Banco Central de Chile. Exports 2013: USD $ 40.158 million in copper USD $ 36.526 million in goods excluding copper EXPORT OF GOODS
In 2013, the exports of non-copper goods reached USD $ 36.526 millon, recording a growth of 2% in comparison with 2012. Exports of Goods* Source: DIRECON and Central Bank of Chile * Doesn’t include neither copper nor services
EXPORTS OF GOODS* Source: DIRECON and Central Bank of Chile Olive oil Berries Salmon and Trout * Does not include neither copper nor services.
Exports of Goods* According to the Geographical Zone Source: DIRECON and Central Bank of Chile Geographical Zone US$ MM 20092010201120122013 Asia, Oceania and Middle East 6,6097,8229,9989,79410,042 South and Central America and the Caribbean 7,1588,34310,22810,0379,955 North America 6,3346,8938,4598,3168,556 Europe 5,0536,1197,3037,0617,305 África 201172255330299 Total 25,76829,74836,76835,97836,526 * Does not include neither copper nor services
EXPORT OF GOODS* 10 MAIN DESTINATIONS Source: DIRECON and Central Bank of Chile * Doesn´t include neither copper nor services.
EXPORT OF SERVICES Macrosectors Source: DIRECON and Central Bank of Chile Service US$ MM 2008 US$ MM 2009 US$ MM 2010 US$ MM 2011 US$ MM 2012 US$ MM 2013 Transport 6,4564,7206,3947,4506,4786,357 Travel 1,6571,6041,6451,8892,1502,219 Others** 2,6252,1693,1093,7663,8274,211 Total 10,7388,49311,14913,10512,45612,787 ** Other services include: company administration services, research and development, IT and engineering design and architecture. US$ 10,738 MMUS$ 12,787 MM
Successful story of Foreign Direct Investment An average of 7.4% of GDP in the last decade Fuente: Inteligencia Comercial ProChile, con cifras del Banco Central de Chile. A PLACE TO LOOK FORWARD TO
Chile has been recognized as The most stable and secure country of South America A good business partner A country open to the world that promotes free trade Fastest economic growth By OCED, World Bank and The Economist Intelligence Unit, and Earnst & Young LAND OF OPPORTUNITIES
1 CHILE NUMBER ONE IN LATIN AMERICA GLOBAL IT REPORT2014 WORLD: 35 OF 144 FORO ECONÓMICO MUNDIAL INDEX OF EASE OF DOING BUSINESS 2014 WORLD: 34 OF 189 WORLD BANK BEST COUNTRIES TO DO BUSINESS2013 WORLD:22 OF145 FORBES MAGAZINE GLOBAL FOOD SECURITY INDEX2013 WORLD: 28 OF 107 ECONOMIST INTELLIGENCE UNIT GLOBAL COMPETETIVITY REPORT 2014 WORLD: 31 OF 60 INTERNATIONAL INSTITUTE FOR MANAGMENT DEVELOPMENT INDEX OF ECONOMIC FREEDOM 2013 WORLD: 11 OF 152 FRASER INSTITUTE, CANADA LOGISTICS PERFORMANCE INDEX 2014 WORLD: 42 OF 160 WORLD BANK EASE OF BUSINESS INDEX 2014 WORLD: 8 OF 138 WORLD ECONOMIC FORUM LAND OF OPPORTUNITIES
2014 Index of Economic Freedom Fuente: The Heritage Foundation (http://www.heritage.org/index/) Economías ( 7th amongst 178 economies ) Chile is one of the 10 countries with a high percentage of economic freedom. Hong KongSingapore Australia Switzerland New Zealand MauritiusDenmark LAND OF OPPORTUNITIES
Corruption Perception Index 2013 (22nd amongst 176 economies). Fuente: Transparency International, 2013 (www.transparency.org)www.transparency.org Amogst the least corrupt countries in the world having high levels of transparency. LAND OF OPPORTUNITIES
The dynamic food industry has placed Chile as one of the leading suppliers of fresh produce off-season for the northern hemisphere. Furthermore, it is the largest exporter of frozen Pacific salmon, frozen trout, fresh blueberries, apples and dried plums. AGRI FOOD SECTOR The growth of primary production sectors, along with the implementation of a satellite industry support, have enabled significant advances in the development of competitive advantages in areas such as innovation, production, and global compliance certifications. INDUSTRIAL SECTOR CHILE, UN PAÍS PARA HACER NEGOCIOS PRODUCTOS Y SERVICIOS PARA EL MUNDO Products and services for the world LAND OF OPPORTUNITIES
Trade in services accounts for over 30% of exports "No Copper" of the country. Its average annual growth rate of 11% respond to the modernization of the State; reforms in the systems of education, transport and health; infrastructure development, and advances in telecommunications. SERVICE SECTOR CHILE, UN PAÍS PARA HACER NEGOCIOS PRODUCTOS Y SERVICIOS PARA EL MUNDO Mining is part of our identity as a nation, being the protagonist of the growth path that had the Chilean economy in recent decades. Mining exports relative to total shipments Chile remains the most important, with a share of around 60%. MINING SECTOR Products and services for the world LAND OF OPPORTUNITIES
Fuente: Inteligencia Comercial ProChile, con cifras del Banco Central de Chile (Balanza de pagos). TRADE WITH ASEAN COUNTRIES Exports and Imports main trade partners (US$M) ExportsImports
Fuente: Inteligencia Comercial ProChile, con cifras del Banco Central de Chile (Balanza de pagos). TRADE WITH ASEAN COUNTRIES Main ASEAN Trade Partners, 2013 (US$M) Balance of Trade (US$M)
Fuente: Inteligencia Comercial ProChile, con cifras del Banco Central de Chile (Balanza de pagos). TRADE WITH THAILAND Exports to Thailand per Sector Good* Exports per Sector 2013, US$M * Does not include neither copper nor services
Fuente: Inteligencia Comercial ProChile, con cifras del Banco Central de Chile (Balanza de pagos). TRADE WITH THAILAND Sea Products
Source: DIRECON and Central Bank of Chile TRADE WITH THAILAND Agriculture and Livestock Products
Fuente: Inteligencia Comercial ProChile, con cifras del Banco Central de Chile (Balanza de pagos). TRADE WITH THAILAND Wines
CHILE TRADE POLICY Chile is relatively small with open economy to free trade through the implementation of a trade policy based on the negotiations of trade agreements. For the past 35 to 40 years, this strategy has allowed Chile to position its products in important and highly competitive markets around the world. Thee fundamental pillars: Unilateral reduction of tariffs Bilateral negotiations of Trade Agreements Multilateral integration through WTO, OCDE and APEC
BENEFITS OF NEGOTIATION WITH THAILAND » Thailand strategic geographical position in South East Asia » Attractive market of more than 69 million people with a GDP per capita of US$ 10.100 » Negotiation with Thailand is part of Chile´s strategic integration process with all ASEAN countries » Thailand is Chile ´s first trading partner within the ASEAN countries » Once in force, the FTA with Thailand will be Chile´s 5th trade agreement with an ASEAN country
FTA CONTENT Disciplines Negotiated: i.Trade in Goods ii.Rules of Origin iii.Custom Procedures and Cooperation iv.Sanitary and Phytosanitary Measures (SPS) v.Technical Barriers to Trade (TBT) vi.Trade Remedies vii.Trade in Services viii.Financial Services ix.Dispute Settlement x.Transparency Modern and Comprehensive Institutional Framework
CHILEAN EXPORTS TO THAILAND MAIN PRODUCTS 29 Source: Studies Department (DIRECON), over data of TRADEMAP. MAIN CHILEAN EXPORTS TO THAILAND (Thousand US$) HS CODE DESCRIPTION2012 740311Copper cathodes125.548 030314Frozen Trout57.156 470311Chemical wood pulp42.954 310420Potassium chloride11.156 030312Frozen Pacific salmon7.184 150420Fish fats & oil7.184 030313Frozen Atlantic salmon6.188 080610Fresh Grapes6.164 SHARE IN THAILAND IMPORTS 2012 6% 73% 57% 4% 13% 45% 13% 6% TARIFF MFNFTA 1%Year 0 5%Year 0 0%Year 0 5%Year 3 5%Year 8 10%Year 0 - Year 3 5%Year 0 30%0% in 2016
THAILAND EXPORTS TO CHILE MAIN PRODUCTS MAIN EXPORTS TO CHILE FROM THAILAND (Thousand US$) HS CODE DESCRIPTION2012 870421Diesel powered trucks462.593 252329Portland cement36.544 160414Fish prepared or preserved20.334 870332 Automobiles with diesel engine 14.761 842810 Automatic washing machines 11.321 392321Sacks and bags6.829 841810 Combined refrigerator- freezers 6.909 SHARE IN CHILEAN IMPORTS 2012 41,7% 31,2% 64,3% 3,8% 14,7% 10,2% 6,4% TARIFF MFNFTA 6%Year 0 6%Year 3 6%Year 0 6%Year 0 6%Year 0 6%Year 0 6%Year 3 - Year 5 Source: Studies Department (DIRECON), over data of TRADEMAP.
THAILAND EXPORT KEY PRODUCTS (thousand US$) Source: Studies Department (DIRECON), over data of TRADEMAP. 31 CodeProduct label2012 847170 Computer data storage units 13.177.109 271019 Petroleum oils and preparations 8.780.752 870421Diesel powered trucks7.677.966 400122Natural rubber (TSNR)4.204.533 100630 Rice, semi-milled or wholly milled 4.053.027 847330Parts of data machines3.358.194 870431Gas powered trucks2.749.144 160414Tunas2.673.478 870899Motor vehicle parts2.639.617 Exports to Chile Chile imports from the world 18133.394 717.486.274 140.6741.108.295 4.58145.128 6460.817 -92.495 -232.28 10.11257.91 381451.226 Tariff MFNFTA 6%Year 0 6%Year 0 6%Year 0 6%Year 0 6%Year 5 6%Year 0 6%Year 0 6%Year 0 6%Year 0
CHILE EXPORTS TO THAILAND: POTENTIAL NEW EXPORTS (thousand US$) CodeDescription '210690Food preparations '870840 Tansmissions for motor vehicles '200870Peaches preserved '240220 Cigarettes containing tobacco '080520Mandarins '040221Milk and cream powder '380892Fungicides '190110Prep of cereals,flour,starch Chilean Exports to the world Thailand Imports from the world 302.639479.631 200.082.835.464 86.98845.738 85.797125.144 74.385122.26 58.312123.913 49.57155.263 46.507114.598 TARIFF NMF (%)FTA 5%Year 0 30%Year 0 - Year 3 30%Year 0 - Year 5 60%Year 8 40%0% in Year 2016 18%Year 5 20%Year 0 5% - 30%Year 0 Source: Asia and Oceania Department (DIRECON), over data of TRADEMAP and WTO.
THAILAND EXPORTS TO CHILE: POTENTIAL NEW EXPORTS (thousand US$) CodeDescription '870323 Automobiles piston engine displace 1.5 to 3.0 cc '230910Dog or cat food '330510Hair shampoos '220300Beer '330610Dentifrices '851712 Telephones for cellular networks '732393 Kitchen or other household parts '330720Deodorants Thailand Exports to the world Chile Imports to the world 1.582.8271.903.409 827.91893.43 574.16669.49 212.65299.927 201.35846.543 99.3231.485.899 98.07642.613 86.61471.992 TARIFF NMF (%)FTA 6%Year 0 6%Year 0 6%Year 0 6%Year 0 6%Year 0 6%Year 0 6%Year 0 6%Year 0 Source: Asia and Oceania Department (DIRECON), over data of TRADEMAP and WTO.
Source: Studies Department (DIRECON), over data of TRADEMAP. SUPPLY CHAIN FIRST STEP The material, supply or consumable good is imported to the country with preferential treatment. Production or assembly in Chile FTA Final good Supplies Tariff Preference Rules of Origin FTAs Tariff SECOND STEP The production process is carried out in Chile or Thailand in order to comply with the rules of origin of different trade agreements. THRID STEP The final good is exported (with Chilean of Thai origin) to other markets.
EXAMPLE US$ 11 million in 2012 MFN Tariff 6%
EXAMPLE Chile – Thailand Free Trade Agreement Potential Market of 566 million consumers 0% Tariff
37 Total GDP(current prices)5.634 GDP per capita (PPP)12.285 Population566.161 Total GDP(current prices)5.634 GDP per capita (PPP)12.285 Population566.161
PERSPECTIVES The FTA between both economies is a clear reflection of the necessity of both economies to take their trade relationship to a new level, boost trade exchange and strengthen an already close relationship. Through this Agreement, both Chile and Thailand seek to open new trade opportunities for goods, services and investment for exporters from both sides. Once the Agreement enters into force it will allow: Materialize economic alliances and reciprocal investment Simplify sanitary and technical regulations for exports from both sides Standardize, transparent and understand each other's customs procedures A quick and efficient resolution of contingencies that may arise through contact points of technical committees