1. Chile at a Glance
Andres Lamoliatte
Embassy of Chile

2. 1. CHILE: Economic Indicators and Index

3. CHILE: KEY INDICATORS & INDEX
Sustained economic growth, income gap has been reduced by more than 40%

4. 36th place (Forbes) CHILE: KEY INDICATORS & INDEX 10th in the world,
2017 Index of Economic Freedom:
10th in the world,
2nd in the Western Hemisphere (after Canada)
Best Countries for Business
36th place (Forbes)
2017 (est) GDP per-capita PPP
US$24,710

5. We base our leadership in strong institutional pillars
CHILE: KEY INDICATORS & INDEX
We base our leadership in strong institutional pillars
1. High Stability and Respect for Government Institutions
Governance Index

6. 11% CHILE: KEY INDICATORS & INDEX 20th 8.3% 19,500
Foreign Direct Investment, A dynamic growth source for Chile
20th
among 202 world’s economies as FDI recipient
8.3%
of GDP
19,500
MMM USD
Annual average
FDI income
11%
Annual average
FDI 2007–2016
growth

7. CHILE: KEY INDICATORS & INDEX
Challenge: Export Basket Diversification

8. Strong commitment to mantain healthy inflation levels
CHILE: KEY INDICATORS & INDEX
Strong commitment to mantain healthy inflation levels 12 10 -2 8
Apr.99
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Apr.02
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Apr.05
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Apr.08
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Apr.11
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Apr.14
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Apr.17
Inflation
Inflación Subyacente
Average ; 3.3%
Inflation (Var.% a/a) 6 4 2
Source: Central Bank of Chile

9. CHILE: KEY INDICATORS & INDEX
A connected and integrated country: Regional platform with global access
Airports: 17
International: 7
National: 10
Country’s ports: 17
Logistic Performance
Index 2016
2º in Latin America
Source: InvestChile based in the Logistic Performance Index 2016 "Connecting to Compete 2016: Trade Logistics in the Global Economy“, World Bank.

10. 2. TRADE POLICY

11. CHILE´S TRADE POLICY
Chile is relative small and open economy, open 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 it´s 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

12. CHILE´S TRADE POLICY
We have signed more Free Trade Agreements than any other country on the planet
26 free trade agreements and
with 64 countries.

13. 7,7% OF THE WORLD POPULATION 21,3% OF CHILEAN EXPORTS COVERED
CHILE`S FTA NETWORK BACK IN THE 90’s
8 TRADE AGREEMENTS
WITH 11 COUNTRIES
7,7% OF THE WORLD POPULATION
21,3% OF CHILEAN EXPORTS COVERED
24,6% GDP

14. 26 TRADE AGREEMENTS WITH 64 COUNTRIES
CHILE`S FTA NETWORK TODAY
26 TRADE AGREEMENTS WITH 64 COUNTRIES
94% OF CHILEAN EXPORTS COVERED
86,3% GDP
64%
OF THE WORLD POPULATION

15. EFFECTIVE TARIFF VS AND EXPORTS (MM US$ and PERCENTAGE,%)
FTA
THAILAND
FTA
MALASIA
32.6%
(MFN 220%)
FTA
AUSTRALIA
FTA
VIETNAM y HONG KONG
FTA KOREA
FTA USA
FTA
JAPÓN
UNILATERAL
TARIFF REDUCTION
FTA
CHINA
AAE EU
ACE MERCOSUR
15.5%
(MFN 35%)
12.3%
(MFN 20%)
9.5%
(MFN 15%)
9.2%
(MFN 11%)
6.2%
(MFN 10%)
1.0%
(MFN 6%)
(*) Exports calculated with the average copper price 1987 – 2003 = 0,965 US$/Lb (**) Weighted average imports tariff
Source: Studies Department DIRECON-PROCHILE, based on data from Central Bank of Chile, UNCTAD and Santiago Chamber of Commerce.

16. 2nd 1st world supplier of grapes 1st world supplier of frozen salmon
4th
world supplier of wines
1st world supplier of blueberries
2nd
world supplier of trouts
2nd
world supplier of fish meal

17. 3. INVESTMENT REGIME & OPORTUNITIES:
A GENERAL OUTLOOK

18. INVESTMENT REGIME & OPORTUNITIES
Foreign Direct Investment Inflows

19. Robust Foreign Investment Regime
INVESTMENT REGIME & OPORTUNITIES
Robust Foreign Investment Regime
Equal treatment before the law: all of enterprises established in Chile declare its taxes according to the Chilean rules.
Moderate income tax on companies.
Creation of InvestChile, new foreign investment promotion and attraction agency.
Priority in 5 economic sectors mining industry services, sophisticated food industry, exportable technological services, sustainable tourism and energy/logistics infrastructure for development.

20. MINING INVESTMENT REGIME & OPORTUNITIES
According to the USGS, Chile concentrated a 28% of the worlds copper reserves companies.
Taking the latter into consideration, Chile has become the world`s largest copper producer (30%). Furthermore, other metals are produced:
Iodine 58% world market production
Lithium 45% world market production
Between 2017 – 2023, current mining companies present in the Chilean market are expected to invest up to US$ 50 billion.
These mean that annually, the mining industry will require approximately US$ 15 billion in auxiliary services.
MINING
The mining industry contributes approximately 9% to Chile`s GDP.
A 33% of all major mining project worldwide, will be operated in Chile.

21. Service Providers for a more comprehensive Mining Industry
INVESTMENT REGIME & OPORTUNITIES
Service Providers for a more comprehensive Mining Industry
Promote Chile as a healthy and sound market for large foreign companies to settle in Chile.
Promote large clusters of companies to reallocate and use Chile as a hub in the region.
Allocate in Chile large production proccesses of foreign service providors.
Identify local service providers which lack research & development + investigation & innovation, investment and/or technology in order to increase their operations in the industry and associate them with foreign companies which may serve as partners.
The latter will facilitate the entry of foreign companies into the Chilean mining industry.
Promote small and medium service providers to associate with foreign companies.

22. INVESTMENT REGIME & OPORTUNITIES
Currently Chile has an installed production capacity of 20,6 GW.
Annual demand will rise by 3,5%
During the first semester of 2017, solar energy output will amount to 2.169MW (June 2016 – 872MW)
Major challenge is to further diversify the grid, amount of companies and consolidate efficiency and sustainability of the Chilean energy system.
ENERGY
41% of the energy produced by the Chilean National Grid System came from renowables energies.

23. INVESTMENT REGIME & OPORTUNITIES
Objective is to have more than 70% of Chile`s energy consumption, come from renewables energy sources, by no later than 2050.
Public tenders for more than GW in the next two years.
Generation / Production
Atract foreign investment with the objective to further roubust transmision lines.
In this context, during 2017 the government has concluded a public tender worth more than US$288 MM.
Transmission
Development of technologies, products and related services.
Solar Energy District (1 GW in northern Chile).
Solar Energy

24. Public tender until 2025 will amount to US$150.000 billion.
INVESTMENT REGIME & OPORTUNITIES
In the last 20 years, public tenders by the Government have contructed project worth more than US$16 billion.
Necesities
Focus
INFRAESTRUCTURE
Infraestructure project and public biddings represent a top priority for the country and is viewed as the cornerstone for Chile`s economic and trade integration with the region.
Public tender until 2025 will amount to US$ billion.
Will be focused in increasing infraestructure, transport and water management.

25. A NEW STRATYEGY… …A NEW OFFICE

26. A NEW STRATYEGY… …A NEW OFFICE
Services at InvestChile

27. Chile at a Glance
Andres Lamoliatte
Embassy of Chile