CHILE Your Doorway to the Rest of the World Business Trade Opportunities CHILE Your Doorway to the Rest of the World

Chile at a Glance Economy Social Chile’s Sovereign Ratings Estimated GDP 2013 US$ 335.4 billion (43rd in the world – The World Factbook) GDP per capita (PPP, 2013) US$ 19,100 (74th in the world -1st in Latin America – TWF) Interest Rate (April 2014) 4.% (Chilean Central Bank) Unemployment rate (2013) 6.5% (Jan-Mar 2014 - INE) Inflation rate (2013) 3% (INE) Exports (2013) US$ 77,94 billion (TWF) Imports (2013) US$ 75,7 billion (TWF) Social Population 17.4 million Official Language Spanish Currency Chilean Peso Literacy rate 98.6% Life expectancy 78.4 years Source TWF Chile’s Sovereign Ratings Fitch Ratings A+ Standard & Poors AA- Moody’s Aa3 Source TWF

Chile at a Glance Expected growth in 2014: 3.6% (IMF) Stock of foreign direct investment at home: US$215 billion (2013 - TWF) Outstanding business environment in 2013: Doing Business 2013 ranking: 37th (out of 185 economies) Corruption Perception Index: 22nd (out of 177 countries) Economic Freedom Index: 7th (out of 178 countries) Leads LATAM in all categories Source: IFC, Transparency International, Heritage

Chile: A Globally Integrated Economy Turkey Ecuador Colombia Australia Peru Cuba Panama Japan India Thailand P-4 China EFTA Korea United States European Union Central America Mexico Canada MERCOSUR Venezuela Bolivia Twenty-two FTAs in force with 60 countries (90% of world’s GDP) FTA with Thailand signed, not yet in force Canada-Chile FTA: in force since July 5th, 1997. Chile’s first FTA.

Chile: A Globally Integrated Economy Belgium Denmark Spain France Ireland Poland Portugal UK Sweden Switzerland Norway Croatia Canada Colombia Ecuador Mexico Peru Argentina Brazil Paraguay South Korea Thailand Malaysia New Zealand Double Taxation Agreements with 24 countries Agreements in force Agreements signed but not yet in force Agreements under negotiation

Canada – Chile: 17 Years of FTA Like-minded Countries FTA Update in Force since 09/2013: Financial Chapter Included 2013 CL exports to CA: US$1.42 Billion 2013 CL imports from CA: US$1.54 Billion 2013 Canada NX: US$120 million CA-CL trade growth: 10% per year Chile investments: US$500 million (forestry, pharma, mining) Canada investments: US$15.8 billion (mining, energy, water management) Source: Chilean Foreign Economic Relations Agency (DIRECON)

Opportunities for Ontario Companies Mining Equipment: Projected investments 2012/2018: US$60 Billion Largest copper and lithium producer in the world Key Areas and Products Water supply and treatment Crushers Grinders Utility vehicles Excavators Cranes and screening machines Drilling equipment and services ITC: Annual growth: 15% Key Areas Mobile services Cloud computing Computers, mobile devices and accessories Public connectivity

Opportunities for Ontario Companies Energy: High cost of energy: US$150 MW/h (13th in the world, 2nd in South America – WEF) Main consumer of energy: Mining (41.1TW/h by 2025) Key Areas Shale gas and LNG Transmission and distribution NCRE: 20% grid by 2025 Conventional generation NCRE: Total energy generated in 2013: 1,413 MW (7.43% NCRE vs 92.57% Conventional) Chile’s objective: 20% of the grid by 2025 (20/25 Act) Main sources: Bioenergy: 54% Mini-hydro: 33% Wind: 12% Others (solar, geothermal, etc. ): 1%

Why Chile? Solid: sustained growth and social progress. First to enter OECD in South America Reliable: great sovereign ratings Competitive: most competitive country in LATAM Attractive: Economic Freedom Index -7th Transparent: strong Rule of Law; Corruption Perception Index - 22nd Santiago: best city for foreign investment in LATAM (2nd year in a row) Integrated: FTAs and Double Tax treaties Wired: Network Readiness Index – 34th (1st in LATAM) Safe: Global Peace Index – 30th (1st in LATAM)

A relatively new trade bloc that has generated great expectation in the region, with 5 member states and 30 observer states, including Canada. Combined, they represent 50% of regional trade. Exports of US$556 Billions and US$551 billions of imports (2012) 37 commercial agreements signed, 24 FTA(in comparison to 9 of Mercosur). FDI flows combined represents 26% of Latin America and the Caribbean. A growing number of observing countries is deeply interested in how this new alliance is facing the challenges.

What we can do for you Matchmaking, Market Development & Analysis, Market Monitoring, etc.; Coordinate initiatives with private and public organizations; Identify specific trade and investment opportunities in public and private projects; and Become your regional partner! Diego Muñoz In-Market Trade Representative Ontario Ministry of Economic Development, Trade and Employment dmunoz@tradechile.cl