ABAC, APEC and Exporters: New opportunities for Businesses Loreto - - PowerPoint PPT Presentation

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ABAC, APEC and Exporters: New opportunities for Businesses Loreto - - PowerPoint PPT Presentation

ABAC, APEC and Exporters: New opportunities for Businesses Loreto Leyton Executive Director Chile Pacific Foundation and ABAC 2019 Esta foto de Autor desconocido est bajo licencia CC BY-SA I. ABAC What does ABAC do? Funcin de ABAC


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Esta foto de Autor desconocido está bajo licencia CC BY-SA

ABAC, APEC and Exporters: New

  • pportunities for Businesses

Loreto Leyton Executive Director Chile Pacific Foundation and ABAC 2019

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  • I. ABAC
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SLIDE 3

Función de ABAC dentro de APEC

  • ABAC was

as cr crea eated in in 1995, , si six yea ears aft fter r th the fou

  • undation
  • f
  • f APEC in

in 1989

What does ABAC do?

  • It

It mak akes rec ecommendations fr from priv rivate sec sector r rep epresentatives to

  • th

the e lea leaders of

  • f th

the 21 APEC ec economies.

  • Ov

Over r th the yea ears, ABAC´s ag agenda has as in incl cluded new top

  • pics rela

elated to

  • mod
  • dern

rn-day prio riorities (e (e.g., dig igital economy, SME’s and sustainability)

  • Con
  • ntacts betw

tween ABAC members an and Le Lead aders ar are e regular ar th throughout th the year ar by y usin sing in institutional ch chan annels.

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SLIDE 4

ABAC Working groups

Regional Economic Integration Sustainable Development MSME & Entrepreneurship Finance and Economics Digital & Innovation

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ABAC’s 2019 main topic:

In Inclusive and Collaborative Growth in in th the Digital Era by…

  • Facilitating MSMEs' market

access

  • Reaffirming regional

economic integration

  • Building sustainable

communities through social innovation and green growth

  • Encouraging financial

inclusion through innovation

  • Promoting smart

regulations, security and skills for the future

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SLIDE 6

Digital and Innovation

Facilitating human capital digitalization Guidelines for a regulatory framework that facilitates business Enhancing cyber security and resilience

Finance and Economics

Enabling technology to drive increased economic and financial inclusion Promoting MSME access to finance Advancing financial integration within APEC

MSME &

Entrepreneurship

Promoting MSME success in GVCs Strengthening the participation of women in the economy Best practices for MSMEEs and regulations that foster their business

Sustainable Development

Fostering sustainable food systems Energy, innovation and circular economy Ensuring sustainability of, and cohesion around, extractive industries

Regional Economic Integration

Further promotion, liberalization and facilitation of trade and investment Advancing towards the Free Trade of the Asia Pacific (FTAAP)

Strengthening the services agenda and progress in the implementation of the APEC Services Competitiveness Roadmap

ABAC Working groups

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Digital and Innovation

Facilitating human capital digitalization Guidelines for a regulatory framework that facilitates business Enhancing cyber security and resilience

Finance and Economics

Enabling technology to drive increased economic and financial inclusion Promoting MSME access to finance Advancing financial integration within APEC

MSME &

Entrepreneurship

Promoting MSME success in GVCs Strengthening the participation of women in the economy Best practices for MSMEEs and regulations that foster their business

Sustainable Development

Fostering sustainable food systems Energy, innovation and circular economy Ensuring sustainability of, and cohesion around, extractive industries

Regional Economic Integration

Further promotion, liberalization and facilitation of trade and investment Advancing towards the Free Trade of the Asia Pacific (FTAAP)

Strengthening the services agenda and progress in the implementation of the APEC Services Competitiveness Roadmap

Technology

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SLIDE 8

Digital and Innovation

Facilitating human capital digitalization Guidelines for a regulatory framework that facilitates business Enhancing cyber security and resilience

Finance and Economics

Enabling technology to drive increased economic and financial inclusion Promoting MSME access to finance Advancing financial integration within APEC

MSME &

Entrepreneurship

Promoting MSME success in GVCs Strengthening the participation of women in the economy Best practices for MSMEEs and regulations that foster their business

Sustainable Development

Fostering sustainable food systems Energy, innovation and circular economy Ensuring sustainability of, and cohesion around, extractive industries

Regional Economic Integration

Further promotion, liberalization and facilitation of trade and investment Advancing towards the Free Trade of the Asia Pacific (FTAAP)

Strengthening the services agenda and progress in the implementation of the APEC Services Competitiveness Roadmap

Regulatory ry is issues

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SLIDE 9

Digital and Innovation

Facilitating human capital digitalization Guidelines for a regulatory framework that facilitates business Enhancing cyber security and resilience

Finance and Economics

Enabling technology to drive increased economic and financial inclusion Promoting MSME access to finance Advancing financial integration within APEC

MSME &

Entrepreneurship

Promoting MSME success in GVCs Strengthening the participation of women in the economy Best practices for MSMEEs and regulations that foster their business

Sustainable Development

Fostering sustainable food systems Energy, innovation and circular economy Ensuring sustainability of, and cohesion around, extractive industries

Regional Economic Integration

Further promotion, liberalization and facilitation of trade and investment Advancing towards the Free Trade of the Asia Pacific (FTAAP)

Strengthening the services agenda and progress in the implementation of the APEC Services Competitiveness Roadmap

SME’s

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Semana APEC Chile, noviembre 2019

11-13: ABAC 4 14: SME's and Entrepreneurs Summit 15-16: CEO's Summit 16: APEC Leaders - ABAC Dialogue 17: Leaders Summit

Chile’s ABAC- APEC Week November 2019

Great opportunity for the host country to set the agenda

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APEC CEO Summit 2019 15 15-16 Nov

✓ Number of Attendees: 800 high level attendees, representing APEC members equitably ✓ Assistant Profile: Chairmen, CEOs and APEC Leaders of the 21 APEC economies, renowned speakers and thought leaders

For more details and regular updates, visit www.apecceosummit.cl

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APEC MSMEE’s Summit 14 Nov

  • Launch of APEC

MondeB2B platform

  • APEC Start-UP Challenge

✓ Two concrete deliverables:

For more details and regular updates, you may download: Cumbre Pymes y emprendedores

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APEC MondeB2B APPLIC ICATION

For more information you may download the application:

“Cumbre Pymes y Emprendedor”

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The APEC region

APEC MONDE B2B PLATFORM

 Support Producers with Technology to export their products to different parts of the

world, which without a Global B2B Marketplace would be much harder to achieve.

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The APEC region

APEC MONDE B2B PLATFORM Why is is it it hard for SMEs to to globalize?

Companies are still using outdated methods to communicate, negotiate and buy, making it hard to manage relationships around the world. Since many online e- commerce platforms have not focused on security, many companies have been part of fraudulent

  • rders when doing

business online.

NO TRUST INEFFICIENT

It takes many companies to work together to successfully export products around the world and without technology exporting products is very difficult. Only a small percentage

  • f companies that could

export, actually do! And it’s because they don’t know what economy they could sell their products to, they have no visibility!

FRAGMENTED NO VISIBILITY

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The APEC region

Every company wil ill l be vali lidated by th the Organiz izatio ions th that hosts th the MondeB2B Marketpla lace

EXPORTERs VALIDATED BUSINESS PARTNERs VALIDATED IMPORTERs VALIDATED

Each economy must validate their Exporters, Importers and Business Partners By validating each company, we’ll ensure TRUST inside the Marketplace!

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The APEC region

La Launch Phases

Phase 1: BIMP (Brunei – Indonesia- Malaysia – Philippines) Phase 3: BIMP + Pacific Alliance + ASEAN (Singapore,

Tailand, Vietnam, Cambodia, Laos and Myanmar)

Phase 2: BIMP + Pacific Alliance (México – Colombia – Perú

and Chile)

Phase 4: BIMP + Pacific Alliance + ASEAN + others APEC

(EE.UU., Canada, China, South Korea, Australia, New Zealand, Japan, PNG)

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Inven(s)ting the Future 2019

APEC STARTUP CHALLENGE

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La Lanzamiento pla lataforma para PYMES:

MondeB2B Marketplace

Conectar de forma segura a exportadores, importadores y socios comerciales de todo el mundo a través de un Marketplace B2B SEGURO que valida a todas las compañías que se unen

Inventing the Future 2019

APEC STARTUP CHALLENGE

OBJECTIVES

Call and selec t the best startups from America and Asia-Pacific, through an attractive application

process with the capacities and expertise to detect the best initiatives.

Invest and ac c eler ate the most promissory startups through a unique financing system in the Chilean

ecosystem, able to support startups at early and advanced stages (accelerator, angels network and CLIN fund).

Put on the agenda those promissory technologies that are going to change the world, and show

them to the people in charge of the society´s future.

Br ing together the best entrepreneurs and world experts in forefront technologies on a exclusive

event in Chile to think about new bets of Venture capital industries.

DIGITALIZATION

L

  • gistic s

Waste management Sustainable c onsumer Shar e ec onomy Mac hine lear ning A.I

WHAT WE ARE LOOKING FOR?

R esour c es management R educ e New mater ials R e-use r epair Plastic management Monitor ing systems T r ac eability R ec yc le mater ials Platfor ms E duc ation IoT R enewable ener gy Cr

  • wdsour

c ing New sustainable business models New c ir c ular business models Optimization Up c yc ling E co design Big data Pr

  • c ess

innovation Digitalization Consumer infor mation

CIRCULAR ECONOMY

4.0 Industr y 5G Biomater ials

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  • II. APEC and business
  • pportunities
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The APEC region

The Asia Pacific Economic Cooperation region (A (APEC)

As of today, there are 21 member APEC economies

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Opportunities for Exporters

  • APEC is at the core of 21st

Century free trade development

  • Asia Pacific region will host 60% of

global middle class by 2040 (ECLA)

  • Asia Pacific has become

the most dynamic

region of 21st Century

  • APEC favors integration into global

value chains

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SLIDE 23

Opportunities for Exporters

  • Topics 21st Century:
  • Digital economy
  • Free trade of services
  • Public Private interaction favors

an acute understanding of businesses concerns among government officials

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APEC in in th the global economy

Source: APEC in Charts, 2018 (www.apec.org)

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4,4 1,6 2,4 3,4 4,4 4,2 4,3 4,4 2,0

  • 0,6

5,1 3,7 3,7 3,6 3,7 3,8 3,2 3,7 3,9 3,7 3,5 3,5 3,3 3,3

  • 4,0
  • 2,0

0,0 2,0 4,0 6,0 8,0 10,0 12,0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Asia-Pacific Emerging Advanced

Source: data from IMF WEO April 2018 database, analysis by PECC International Secretariat

Asia ia Pacif ific: GDP Growth

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SLIDE 26
  • Free trade integration among

APEC economies invigorates exports by opening up new markets

Opportunities for Exporters

  • Non-binding nature of

APEC facilitates free trade negotiations and a regular best-practices sharing process

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Valu lue of f APEC Merchandise Trade in in APEC (U (USD tri rillion), 2000 – 2017

Source: APEC in Charts, 2018 (www.apec.org)

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Valu lue and Growth of f APEC Commercial Services Trade, 2007 – 2017

Source: APEC in Charts, 2018 (www.apec.org)

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Trade Volu lume Growth in in APEC (a (annual percent change), 2017

Source: APEC in Charts, 2018 (www.apec.org)

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Source: Research Outcomes. Summary of Research Projects 2018. Policy Support Unit, APEC.

Opportunities for Exporters

  • Number of RTA (Regional Trade

Agreements) and FTA (Free Trade Agreements) has steadily increased :

  • 175 RTA/FTA signed by at

least one APEC economy (Dec, 2017)

  • Almost 50% of APEC’s

bilateral trade was under the umbrella

  • f an RTA and/or FTA (Dec,

2017)

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SLIDE 31

Source: Research Outcomes. Summary of Research Projects 2018. Policy Support Unit, APEC.

Opportunities for Exporters

  • 2016-2017: tariffs went down from 5,5% to 5,3% on average (heavy reduction on tariffs to

agriculture products)

  • Number of tariff-free products in the APEC region grew to almost 50% in the same period
  • Exporting and importing are becoming increasingly faster processes
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Perceptions of APEC

APEC is widely seen as a relevant and effective

  • 12,5%
  • 18,6%
  • 21,9%
  • 12,3%
  • 14,1%

71,4% 60,5% 60,9% 66,7% 60,6%

  • 60%
  • 40%
  • 20%

0% 20% 40% 60% 80% 100%

North America Northeast Asia Oceania Pacific South America Southeast Asia Disagree Agree

  • 37,0%
  • 46,9%
  • 35,8%
  • 30,8%
  • 22,7%
  • 17,9%
  • 17,2%
  • 13,7%
  • 12,8%
  • 11,8%
  • 15,9%

45,9% 48,2% 41,8% 40,3% 36,1% 35,0% 61,4% 64,9% 67,7% 66,9% 63,4%

  • 80%
  • 60%
  • 40%
  • 20%

0% 20% 40% 60% 80% 100% 2006 2007 2008 2010 2011 2013 2014 2015 2016 2017 2018

Negative Positive

Perception Usefulness

Source: State of the Region 2018-2019 Survey, Pacific Economic Cooperation Council

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SLIDE 33
  • 42,7%
  • 14,2%
  • 21,1%
  • 29,5%
  • 14,2%
  • 14,6%
  • 25,5%
  • 29,5%
  • 29,2%

28,7% 42,2% 24,6% 24,1% 49,1% 17,3% 42,9% 22,1% 26,3%

  • 80%
  • 60%
  • 40%
  • 20%

0% 20% 40% 60%

China India Japan Russia Southeast Asia Oceania USA EU World Weaker Stronger

Source: Pacific Economic Cooperation Council State of the Region Survey 2018

Growth expectations by region

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APEC

Sustainable growth and prosperity

Liberalization of trade and investment Business promotion Economic and technical cooperation

Markets openness Increasing trade and investment More economic and social development Lower export and import costs Lower production costs (Gloval Value Chains) Strengthening of institutional capacities

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Dig igit ital Economy Part rtnership Agreement (D (DEPA)

  • New Zealand, Chile and Singapore announced

formal negotiations in April, during APEC meeting

  • Take advantage of the Digital Economy’s potential

(more opportunities for MSMEs)

  • Considers all aspects of the digital economy that might

support digital trade policy in the digital era, such as:

  • Free data flows
  • Non-discrimination of digital products
  • No forced localization requirements for computers

equipment

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SLIDE 36

South Pacific Undersea Cable

A new digital bridge connecting Asia and South America

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SLIDE 37

A case of connectivity in the 21st Century

Missing link between Asia and South America

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One of Main macro projects in Chile´s telecom infrastructure 2018-2021

Digital Ga Gate from Asia to South America Curie (Google gle)

USD 300 Mill* (P) (2019)

PPP: Public Private Partnership P: Private Investment (*) Estimates (**) Devices and apps are not included (***) In coverage zones

USD 500-600 Mill (PPP) (2021)

25 fold increment in Chile’s International connectivity Capacity: from 6 to 160 Tbps

Enhanced International connectivity

38

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SLIDE 39

22,000 Km

Fiber Optic System

10 TBps

Capacity

USD 600 mill

Investment

  • A new digital bridge connecting Asia to South America, that is set to reconfigure digital

possibilities in the Pacific Area.

  • A new source of redundancy for Internet Traffic.
  • A high capacity route to allow datacenters on both sides of the Pacific to interact with

minimum delays.

  • A landing point for digital distribution to: Brazil, Argentina, Peru

and the countries in the South American region, through an extensive network of fiber optic cables (AMX1, MONET, ELLA, PCCS, SACS).

  • Prime access to a wealth of astronomical data

generated in Chile (the country hosts nearly 60% of the world’s

astronomical infrastructure).

South Pacific Undersea Cable

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Eje Inversión e Infraestructura

Undersea Cable: “Asia - South America Digital Gateway”

40

Origin China, Japan, Korea & Singapore Intermediate New Zealand, Australia & Hawaii Branches Landing point Rapa Nui, J. Fernández & French Polynesia Valparaíso, Arica, Punta Arenas, branch to Lima

Route Alternatives (preliminary):

  • 1. Conceived to boost Chile as Hub Digital of the Southern Cone,

adding demand for data transport with South American countries, with the confirmation of Brazil and Argentina.

  • 2. Other interested countries: China, Japan, French Polynesia,

New Zealand and Singapore.

  • 3. Main potential gains (positive externality) associated to world

class datacenter deployment and transit to other countries in the Southern Cone.

  • 4. Increased availability (offer) of international connectivity and

redundancy for routes through the South Pacific

  • 5. Investment: USD 500-600 million
  • 6. First stage: Feasibility study (USD 3 MM, CAF Funding)

Key aspects

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SLIDE 41
  • III. Chile’s experience
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SLIDE 42

64

ECONOMIES

63%

GLOBAL POPULATION

86%

GLOBAL GDP

57%

OF THE COUNTRY’S GDP IS EXPLAINED BY TRADE

28

FREE TRADE AGREEMENTS

8.080

COMPANIES EXPORTED DURING 2018, INCLUDING 3.378 SME’s

1,2 MILLONS

OF JOBS CREATED BY EXPORT COMPANIES

95%

OF EXPORTS GO TO COUNTRIES WITH WHICH CHILE HAS AN FTA (2018) CHINA (35%) UNITES STATES (14%) JAPAN (10%) SOUTH KOREA (6%) BRAZIL (5%)

1st

GLOBAL EXPORTER

2018

I Fresh Cherries I Fresh Grapes I Fresh Blueberries I Salmon Fillet I

149 2.518 11.093 38.975

1960 1980 2000 2018

Record of non-copper exports

USD Millions

| THE NUM B E RS B E HIND CHILE ’ S F R E E TR A DE PO LICY

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SLIDE 43

1% 8% 8% 8% 8% 8% 13% 14% 15% 16% 16% 17% 17% 17% 18% 18% 18% 18% 19% 20% 22% 23% 24% 27% 33% 34% 43% 50% 61%

Source: Chile’s General Directorate of International Economic Relations

Access to global GDP through FTA’s

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Fuente: DIRECON, sobre la base de Banco Central de Chile, Aduana y Cámara de Comercio de Santiago.

Tarif iffs and exports

0% 5% 10% 15% 20% 25% 30% 35% 10.000 20.000 30.000 40.000 50.000 60.000 70.000 80.000 90.000

1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016

EXPORTACIONES* EXPORTACIONES EXPORTACIONES NO COBRE ARANCEL DE IMPORTACIÓN**

0,89%

(MFN 6%)

ACE MERCOSUR AAE UE TLC KOREA TLC EEUU TLC CHINA

32,6%

(NMF 220%)

6,2%

(NMF 10%)

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SLIDE 45

10.000 20.000 30.000 40.000 50.000 60.000 70.000 80.000 90.000 Total Exportado Total Importado

Chile’s trade balance since implementation

  • f

f growth strategy based on trade openness

Source: Chile’s General Directorate of International Economic Relations

Exported Imported

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Chile’s exports destinations

Source: Chile’s General Directorate of International Economic Relations

1% 4% 5% 5% 16% 17% 21% 20% 21% 21% 19% 45% 66% 65% 77% 91% 91% 92% 92% 93% 93% 93% 94% 93% 95% 95%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

% Chile´s commercial partners Rest of the world

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APEC and Chile

Port of Valparaiso, Chile

  • 69% of Chilean exports

go to the APEC region

  • 59% of Chile’s imports

come from APEC

  • 58% of investments in

Chile come from the APEC region

Source: Chile at a Glance (www.apecchile2019.cl)

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SLIDE 48

Evolution of Chile’s exports by destination

Source: Chile’s General Directorate of International Economic Relations

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10.000.000 20.000.000 30.000.000 40.000.000 50.000.000 60.000.000 70.000.000 80.000.000 90.000.000

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Mundo Mundo sin APEC

Chile - World versus Chile – World wit ithout APEC

World World without APEC