Bilateral Trade Chile US A win win situation P R O C H I L E The - - PowerPoint PPT Presentation

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Bilateral Trade Chile US A win win situation

P R O C H I L E

The Trade Commission of Chile

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CHILE AT A GLANCE

Sources: World Bank, EIU, IMF, A.T.Kearney 2006

Vital Statistics (2008)

Population: 16.6 M GDP: US$ 183 B (III 08) GDP (PPP): US$ 234 B GDP per capita: US$ 9.879 Annual inflation: 9.3% (III 08) 4.4 % (07) Unemployment: 7.2% (III 08) Adult literacy rate: 96.2% Corporate tax: 17% Tariffs

• General 6%
• Hardware 0%
• 95% of imports pay no

tariffs

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Strategic Orientation: Trade & Macroeconomic Policy Consistency in Democracy Structural linkage between trade liberalization, macroeconomic stability, economic growth, poverty reduction and democracy Chile accounts for 0.2% of the world economy. 65% of Chile’ GDP is represented by trade (75% services)

2 4 6 8 10 12 14 16

Applied M FN

Tariffs

Source: Direcon

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Trade and Welfare: (1990-2006)

Source: Central Bank Chile, Casen

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Chile has preferential access to 90% of world GDP

20 trade agreements with 56 countries

Source: DIRECON

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8.1 8.1 11.0 11.0

7.3 7.3 2.3 2.3

4.2 4.2 5.3 5.3 1.1 1.1 5.0 5.0 1.8 1.8 1.2 1.2 3.4 3.4 0.8 0.8 2.3 2.3 0.9 0.9 9.9 9.9 6.8 6.8 3.9 3.9 3.2 3.2

2.3 2.3 1.6 1.6 4.3 4.3 0.2 0.2

Source: DIRECON

EXP I MP

Chile’s Major Trade Partners (US $ Trillions 2008)

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The World Economy 2009 and Chilean Exports

Red: Negative estim ated PGB 2 0 0 9 Yellow : Zero grow th estim ated 2 0 0 9 Green: Positive estim ated GDP 2 0 0 9

Source: Direcon

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South Korea 5.6% USA 11.6% China 14.1% Japan 10.4% Mercosur 9.7% EU 21.6% Others 27% South Korea 5.6% USA 19.4% China 12% Japan 4.7% Mercosur 19.5% EU 10.3% Others 28.5%

Source: DIRECON

Exports Destiny Imports Origin

Chile’s Exports and Imports 2008

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• In effect since January 2004
• 87% of Chilean products and

90% of US products duty free

• No exclusions
• Free trade in 2015
• Market access
• Customs procedures
• Rules of origin
• Sanitary & phytosanit.
• Technical norms
• Services
• Telecomunications

Free Trade Agreement Chile US

Source: DIRECON

• Financial services
• Investments
• Business mobility
• Intellectual property
• Competition policies
• AD & countervailing measures
• Safeguards
• E-commerce
• Government procurement
• Labor
• Environment
• Dispute settlement

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Bilateral Trade Chile US

Chile US Bilateral Trade

Source: DIRECON

5,000 10,000 15,000 20,000 25,000 M 2008 2007 2006 2005 2004 2003 2002 Exp Chile to USA Exp USA to Chile Bilateral trade Chile US Millions of US$

• The US used to be the first destiny of

Chilean Exports (11.6%) until 2006. Today is China (14.1%)

• In 2008, the US was the main

exporter to Chile followed by China, Brazil and Argentina

• 19.4% of Chilean imports are from US

(in 2008 Chile imported more US products than Russia, Indonesia…)

• Bilateral trade in 2007 is more than 3

times bigger than in 2003.

• In 2008 the US has a positive trade

balance with Chile for the first time

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Bilateral Trade Chile CA

Chile CA Bilateral Trade

Source: DIRECON

Millions of US$

• Since 2007 CA has a positive trade

balance with Chile

• CA exports to Chile in 2008 is more than

9 times the value in 2003

• Produce is the main imports from Chile

(while copper in the main import of the US from Chile)

• Main exports to Chile: Mineral Fuel, Oil

Aircraft, Spacecraft, And Parts, Nuclear Reactors, Boilers, Machinery Etc.; Parts.

• Some tendencies: Lead , Coffee, Tea,

Prep Cereal, Flour, Bakers Wares, Fish, Crustaceans, Beverages, Spirits And Vinegar

• Chile offers the same quality gourmet

products than Europe, at lower prices

500 1,000 1,500 2,000 2,500 3,000 M 2008 2007 2006 2005 2004 2003 2002 Exp Chile to CA Exp CA to Chile Bilateral Trade Chile CA

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• MOU between Chile and the State of

California.

• Signed by the President of Chile and the

Governor of California in June 2008. – Opportunities to develop in the areas

• human capital development
• education
• environmental protection
• Energy
• Agriculture
• information technology and

communication

• trade and business
• Customs procedures
• 3 Agreements of Cooperation
• California State University and the

Universidad Tecnológica de Chile – advice on curriculum development – college preparation and remediation – development of articulation programs with community colleges

MOU Between Chile & California

• University of California Davis and the

Instituto de Investigaciones Agropecuarias, the Asociación Nacional de Productores de Semillas, and a group of the best universities

• f Chile

– conserve and characterize critical genetic resources – develop new crop germplasm – release improved varieties – educate a new generation of plant breeders to enhance and sustain innovation in crop variety development

• University of California Davis and the wine

consortia of Chile Vinnova – research, development and capacity building – improving viticulture and enological technology – sustainable production – improving wine flavor – educate a new generation of winemakers to enhance and sustain innovation in wines and grapes