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

Bilateral Trade Chile US A win win situation P R O C H I L E The Trade Commission of Chile 1

CHILE AT A GLANCE 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 2 Sources: World Bank, EIU, IMF, A.T.Kearney 2006

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) 16 14 Tariffs 12 10 8 Applied M FN 6 4 2 0 3 Source: Direcon

4 Trade and Welfare: (1990-2006) Source: Central Bank Chile, Casen

Chile has preferential access to 90% of world GDP 20 trade agreements with 56 countries 5 Source: DIRECON

Chile’s Major Trade Partners (US $ Trillions 2008) 7.3 2.3 2.3 1.8 1.2 1.2 7.3 8.1 11.0 11.0 1.8 8.1 4.3 0.2 0.2 4.3 9.9 6.8 6.8 9.9 3.4 0.8 0.8 3.4 2.3 0.9 0.9 2.3 2.3 2.3 1.6 1.6 3.9 3.2 3.9 3.2 4.2 5.3 5.3 4.2 EXP I MP 1.1 5.0 5.0 1.1 6 Source: DIRECON

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 7

Chile’s Exports and Imports 2008 Exports Destiny Imports Origin South Korea South 5.6% USA Others Korea 11.6% Others 27% 5.6% USA 28.5% 19.4% China 14.1% China EU EU 12% Japan 10.3% 21.6% Mercosur Japan 10.4% Mercosur 19.5% 4.7% 9.7% Source: DIRECON 8

Free Trade Agreement Chile US • Financial services • In effect since January 2004 • Investments • 87% of Chilean products and 90% of US products duty free • Business mobility • No exclusions • Intellectual property • Free trade in 2015 • Competition policies • Market access • AD & countervailing measures • Customs procedures • Safeguards • Rules of origin • E-commerce • Sanitary & phytosanit. • Government procurement • Technical norms • Labor • Services • Environment • Telecomunications • Dispute settlement Source: DIRECON 9

Chile US Bilateral Trade Bilateral Trade Chile US • The US used to be the first destiny of Chilean Exports (11.6%) until 2006. Millions of US$ M Today is China (14.1%) 25,000 • In 2008, the US was the main 20,000 exporter to Chile followed by China, Brazil and Argentina 15,000 • 19.4% of Chilean imports are from US (in 2008 Chile imported more US 10,000 products than Russia, Indonesia…) 5,000 • Bilateral trade in 2007 is more than 3 times bigger than in 2003. 0 2002 2003 2004 2005 2006 2007 2008 • In 2008 the US has a positive trade balance with Chile for the first time Exp Chile to USA Exp USA to Chile Bilateral trade Chile US 10 Source: DIRECON

Chile CA Bilateral Trade Bilateral Trade Chile CA • Since 2007 CA has a positive trade balance with Chile Millions of US$ • CA exports to Chile in 2008 is more than 9 times the value in 2003 M 3,000 • Produce is the main imports from Chile (while copper in the main import of the 2,500 US from Chile) 2,000 • Main exports to Chile: Mineral Fuel, Oil 1,500 Aircraft, Spacecraft, And Parts, Nuclear Reactors, Boilers, Machinery Etc.; Parts. 1,000 • Some tendencies: Lead , Coffee, Tea, 500 Prep Cereal, Flour, Bakers Wares, Fish, Crustaceans, Beverages, Spirits And 0 2002 2003 2004 2005 2006 2007 2008 Vinegar Exp Chile to CA Exp CA to Chile Bilateral Trade Chile CA • Chile offers the same quality gourmet products than Europe, at lower prices 11 Source: DIRECON

MOU Between Chile & California • MOU between Chile and the State of • University of California Davis and the California. Instituto de Investigaciones Agropecuarias, the Asociación Nacional de Productores de • Signed by the President of Chile and the Semillas, and a group of the best universities Governor of California in June 2008. of Chile – Opportunities to develop in the areas – conserve and characterize critical genetic • human capital development resources • education – develop new crop germplasm • environmental protection – release improved varieties • Energy – educate a new generation of plant breeders • Agriculture to enhance and sustain innovation in crop • information technology and variety development communication • trade and business • University of California Davis and the wine • Customs procedures consortia of Chile Vinnova – research, development and capacity • 3 Agreements of Cooperation building • California State University and the – improving viticulture and enological Universidad Tecnológica de Chile technology – advice on curriculum development – sustainable production – college preparation and remediation – improving wine flavor – – development of articulation programs educate a new generation of winemakers with community colleges to enhance and sustain innovation in wines 12 and grapes