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Business Opportunities in Chile Eliel Hasson Nisis TLC ConsultingChile.

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Presentation on theme: "Business Opportunities in Chile Eliel Hasson Nisis TLC ConsultingChile."— Presentation transcript:

1 Business Opportunities in Chile Eliel Hasson Nisis TLC ConsultingChile

2 WHO IS CHILE?

3 WHO IS CHILE? (2)

4 WHO IS CHILE? (3)

5 WHO IS CHILE? (4)

6 Chile in the Global Trade Multilateral (WTO) Bilateral (70% trade) Unilateral (6% MFN; 1.5% effective)

7 International Integration & Trade In forcePopulation (million) GDP (US$ Billion) EE.UU.297, ,0 Canadá31,7834 México104,9626 EU454, South Korea48,0605 EFTA2,0541 Mercosur283,0639 Central América 39,589 Total1.261, PendingPopulation (million) GDP (US$ Billion) Singapore4,391 New Zealand3,976 Brunei0,38 China1.313, Perú27,661 India1.081,12599 Japan127, Total2.558,46.571

8 Chile – US FTA  The United States represents 22% of global GDP, accounts for 19% of the world's imports, and its market is 148 times the size of the Chilean economy.  Chile's FTA with the United States:  consolidates and extends the access of Chilean product,  establishes clear and permanent rules for trade in services and investment, as well as for trade in goods.  Under the Agreement, 87% of Chilean exports to the United States obtained immediate tariff-free access, and this will rise gradually to 94.8% over the first four years, and to 100% over twelve years.  The FTA opens up new opportunities.

9 Chile – US FTA  In the three months following the entry into force of the U.S.-Chile Free Trade Agreement, total U.S. exports to Chile increased by 24 percent compared to the same period of 2003, growing from $ million to $ million. This compares favorably to an increase of 13 percent in U.S. exports to the world in the first quarter of  U.S. exports of manufactured goods to Chile increased by 19.5 percent January/March 2004, from $570.9 million to $682.3 million. Particularly strong growth was registered in exports of construction equipment, medical equipment, and paper.  Exports of U.S. agricultural goods grew 22.6 percent from $22.66 million to $27.77 million.

10 Business Opportunities Investment in Infrastructure Travel and Tourism Services Financial Services Engineering Services Software and services Architectural and Construction Services Telecommunications

11 Why doing business in Chile? 1. Business Environment 2. Political Stability 3. Modernization of the State 4. Economic Freedom 5. Best city to Do Business in LA

12 Doing Business with the Chilean Government  Chile is not a party to the WTO Agreement on Government Procurement, but the U.S.-Chile FTA calls for open tendering in public procurement, in general.  The FTA provisions covers procurements by twenty Chilean central government entities for non-construction purchases over US$56,000.  It also covers local government non-construction procurements over US$460,000. In both cases, higher limits apply for construction work.  The agreement also calls for non-discriminatory “national treatment” for either country’s suppliers.  Tender opportunities should be published at least thirty days in advance and technical specifications or requirements should be performance-based.  The site serves as a central source for all Chilean government procurement. Foreign and local bidders on government tenders must register with the Chilean Direccion de Provisionamiento del Estado (Bureau of Government Procurement Supplies).

13 Chile – US FTA GP MARKET ACCESS ChileUSAEU ICentral GovernmentFederal GovernmentCentral Governments IIMunicipalitiesStatesSub central entities IIIPortsOther entitiesPorts Airports - Three groups -Three categories -Positive list

14 Chile – US FTA GP MARKET ACCESS (2) 3 categories: Goods, Services, Construction Services US$ - European Union DEG DEG = US$ ThresholdsGoodsServicesConstruction Services Central GovernmentUS UE US UE US UE Sub federal/localUS UE US UE US UE Other entitiesUS UE US UE US UE

15 Basic Overview E Catalogue LogisticsLogistics ConsultingConsulting Value Added Services BuyersSuppliers Market Place FinancialFinancial Regulatory Frame Work Non Binding Principles for Government Procurement Institutions US$ millions per year transactions per year. 60% services, 40% goods. 900 buying organizations suppliers

16 Basic Processes

17

18 Bidding Process

19 Foreign Suppliers registered at ChileCompra

20 BOT in Chile: How the system works?

21 Total Concessions Investment US$5.5bn (Official estimate)

22 Concessions Program  Hospitality Infrastructure  New Hospital in Maipú  Hospital Sotero del Río  New Hospitality Complex Barros Luco – Trudeau  New Hospitality Complex Salvador Infante  Total estimated investment:MMUS$250

23 Concessions Program  Dam Program  Ancoa Dam  Punilla Dam  Aconcagua System  Total estimated investment:MMUS$400

24 Concessions Program  Airport Program  New Airport IX region  New Airport IV region  New Bidding Airport El Tepual (Puerto Montt)  New Bidding Airport Diego Aracenna (Iquique)  Total estimated investment:MMUS$100

25 Thank you Address: Avenida El Golf 40, Piso 13º Las Condes, Santiago, Chile Phone: (56-2)


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