CHILE Its Land, People and Business Opportunities WHY CHILE? BECAUSE - - PowerPoint PPT Presentation

CHILE

Its Land, People and Business Opportunities

Chile is a democracy with an open and stable economic model, which has remained one of the most competitive economies in the region. Its solid institutional framework, the strength and transparency of its public institutions, infrastructure, and efficient and sophisticated financial market, have led to becoming the first South American country to be a member of the

Organization for Economic Cooperation and Development (OECD ).

Today, the country ranks 22 among 176 countries in the "Index 2013

Corruption Perception" published by Transparency International, being

a leader in Latin America.

BECAUSE ITS A GENIUINE AND TRUSTWORTHY COUNTRY

¿WHY CHILE?

The stunning and distinct geography of the country has shaped the character of its people, challenging them to dominate and to establish links with the world. Currently, Chile has the largest network of existing Free Trade Agreements. 24

Trade Agreements with 62 countries, and others in the process of

negotiation, give him privileged access to a market of over 4,439 million inhabitants.

BECAUSE AN OPEN COUNTRY CONNECTED WITH THE WORLD

Despite the geographical distances, Chile is a leader in the development

• f information technology and communications in Latin America,

as per the ranking of Connectivity Scorecard 2013. Likewise, its infrastructure of roads, ports and airports are among the most advanced in the region.

¿WHY CHILE?

Large temperature swings are the way of life in the north. This place is known for its vast mineral wealth, which has attracted the largest companies in the sector by encouraging the development of CODELCO, the state company that to date is the largest producer of copper worldwide. This area is also known internationally for its clear skies, as their lack of clouds and the distant light pollution have become the world capital

• f astronomy.

Climatic conditions have favored the development of

Unconventional Renewable Energies, such as solar, wind and

geothermal exploration; well lead to a unique phenomenon in the world, the flowering desert.

NORTHERN ZONE

EXPLORING CHILE AND ITS RICH DIVERSITY

The pace of big cities and the quiet countryside combine in this place of Mediterranean characteristics, which has settled the largest number

• f inhabitants.

The business sector is mainly concentrated in Santiago, the

capital; in the port of Valparaiso and Concepción. Just minutes from these extensive valleys, by the combination of natural barriers, climatic characteristics and soil quality, have been occupied by horticultural and wine producers are located. The latter have placed the country

among the eight largest wine producers in the world.

CENTRAL ZONE

EXPLORING CHILE AND ITS RICH DIVERSITY

This is the area of ​sea and lakes; lush forests and steppe; ancient ice and volcanoes; leads to important fisheries, livestock, forest, and mineral waters with high added value. In this naturally protected environment, thrives the dairy industry which exports products like milk, cheese and butter, to name a few, and also is prevalent the salmon industry, which in 2013

exported about $ 3,600 million.

Weather conditions and soil quality, have favored the sustainable

cultivation of forests for wood industry to contribute to the

country nearly 3% of GDP.

ZONA SUR

EXPLORING CHILE AND ITS RICH DIVERSITY

Agreements in force Agreemts signed

EFTA South Korea United States European Union Japan India P-4 China Australia Perú Cuba Panamá Vietnam Malaysia Turkey Ecuador Central américa México Canadá Mercosur Venezuela Bolivia Colombia Thailand

63%

Of the global population

93,8%

Of our export markets

85%

Of global GDP

A COUNTRY OPEN TO THE WORLD: 24 Trade agreements with 62 countries.

Fuente: Inteligencia Comercial ProChile, con datos de DIRECON.

ECONOMY AND FOREIGN TRADE

Fuente: Inteligencia Comercial ProChile, con cifras del Banco Central de Chile.

Exports 2013:

• US$ 40.158 million in Copper
• US$ 36.526 million in goods without copper

EXPORT OF GOODS

29.695 41.361 44.670 41.987 40.158 25.768 29.748 36.768 35.978 36.526

• 10.000

20.000 30.000 40.000 50.000 60.000 70.000 80.000 90.000 2009 2010 2011 2012 2013 US$ MM

Cobre Bienes sin Cobre

Copper 52% Non-Copper Goods 48%

In 2013, the total Chilean exports reached US$ 76.684 millones.

EXPORT OF GOODS*

Export of goods have grown significantly in the last decade. Supported by an active policy of trade liberalization, which has facilitated access of Chilean products to international markets.

Fuente: Inteligencia Comercial ProChile, con cifras del Banco Central de Chile.

13,656 17,629 22,051 25,311 29,358 32,755 25,768 29,748 36,768 35,978 36,526

5.000 10.000 15.000 20.000 25.000 30.000 35.000 40.000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

US$ MM

* Doesn´t include neither Copper nor services

In 2013, the exports of non-Copper goods reached US$ 36.526 millons, recording a growth of 2% in comparision to 2012.

Exports of Goods*

Fuente: Inteligencia Comercial ProChile, con cifras del Banco Central de Chile.

• 5.000

10.000 15.000 20.000 25.000 30.000 35.000 40.000

2009 2010 2011 2012 2013 US$ MM Vinos Minerales Productos del Mar Industria Forestal Productos Agropecuarios Manufacturas Wine 5% Minerals 12% Sea Products 14% Forestry Industry 16% Agro products 26% Manufacturing 27%

* Doesn´t include neither Copper nor services.

Growth in export of goods, has been driven by high value-added sectors such as the Forestry Industry and Agricultural Products, Sea Food and Wine.

EXPORT OF GOODS*

Fuente: Inteligencia Comercial ProChile, con cifras del Banco Central de Chile.

• 2.000

4.000 6.000 8.000 10.000 12.000 Manufacturas Productos Agropecuarios Industria Forestal Productos del Mar Minerales Vinos US$ MM 2009 2010 2011 2012 2013

* Doesn´t include neither Copper nor services.

EXPORT OF GOODS* Latin America**

Fuente: Inteligencia Comercial ProChile, con cifras del Banco Central de Chile.

* Doesn´t include neither copper nor services ** Geoesquema ECLAC.

Latin America 30% Rest of the World 70%

In 2013, Chilean exports of goods totaled US $ 36,526 million. Latin America accounted for 30% of these shipments, with amount of $ 11,081 million.

9,120 11,164 8,099 9,371 11,453 11,167 11,081

• 2.000

4.000 6.000 8.000 10.000 12.000 14.000 2007 2008 2009 2010 2011 2012 2013 US$ MM

Chilean Exports to Latin America

In 2013, exports of services totaled U.S. $ 12,787 million, an increase of 3% compared to 2012.

Fuente: Inteligencia Comercial ProChile, con cifras del Banco Central de Chile (Balanza de pagos).

EXPORTS OF SERVICES

10,738 8,493 11,149 13,105 12,456 12,787 2.000 4.000 6.000 8.000 10.000 12.000 14.000 2008 2009 2010 2011 2012 2013 US$ MM

According to various rankings and international reports of bodies such as OCED, World Bank and The Economist Intelligence Unit, Chile has been recognized as:

• The most stable and secure country of South

America.

• A good business partner.
• A country open to the world that promotes free

trade.

Ernst & Young placed Chile among the countries with the fastest economic growth along with China, Ghana, Indonesia, Saudi Arabia and Colombia.

LAND OF OPPORTUNITIES

The dynamic food industry has placed Chile as one of the leading suppliers of fresh produce off-season for the northern hemisphere. Furthermore, it is the largest exporter of frozen Pacific salmon, frozen trout, fresh blueberries, apples and dried plums.

AGRI FOOD SECTOR

The growth of primary production sectors, along with the implementation of a satellite industry support, have enabled significant advances in the development of competitive advantages in areas such as innovation, production, and global compliance certifications

Industrial sector

CHILE, UN PAÍS PARA HACER NEGOCIOS PRODUCTOS Y SERVICIOS PARA EL MUNDO

Products and Services for the world

LAND OF OPPORTUNITIES

Trade in services accounts for over 30% of exports "No Copper" of the

• country. Its average annual growth rate of 11% respond to the

modernization of the State; reforms in the systems of education, transport and health; infrastructure development, and advances in telecommunications.

SERVICE SECTOR

CHILE, UN PAÍS PARA HACER NEGOCIOS PRODUCTOS Y SERVICIOS PARA EL MUNDO

Mining is part of our identity as a nation, being the protagonist of the growth path that had the Chilean economy in recent decades. Mining exports relative to total shipments Chile remains the most important, with a share of around 60%.

MINING SECTOR

Products and services for the world

LAND OF OPPORTUNITIES

1 Santiago (Chile) 2 São Paulo (Brasil) 3 Ciudad de México (México) 4 Lima (Perú) 5 Bogotá (Colombia) 6 Monterrey (México) 7 Río de Janeiro (Brasil) 8 Ciudad de Panamá (Panamá) 9 Valparaíso (Chile) 10 Buenos Aires (Argentina) 11 Concepción (Chile)

Índice de Atractividad de Inversiones – INAI 2013 Fuente: Universidad del Rosario e Inteligencia de Negocios, mayo 2013 http://www.atkearney.com/research-studies/global-cities-index/full-report

SANTIAGO, the most attractive city of investments in Latin America(2013). SANTIAGO, is featured for the first time in the ranking "Global Cities Index", AT Kearney, one of the most integrated into the world in 2014, in exchange for information leading cities.

LAND OF OPPORTUNITIES

CHILE CHILE NU NUMBER MBER ON ONE E IN IN LA LATIN TIN AMERI AMERICA CA

GLOBAL IT REPORT2014 WORLD: 35 OF 144 FORO ECONÓMICO MUNDIAL INDEX OF EASE OF DOING BUSINESS 2014 WORLD: 34 OF 189 WORLD BANK BEST COUNTRIES TO DO BUSINESS2013 WORLD:22 OF145 FORBES MAGAZINE GLOBAL FOOD SECURITY INDEX2013 WORLD: 28 OF 107 ECONOMIST INTELLIGENCE UNIT GLOBAL COMPETETIVITY REPORT 2014 WORLD: 31 OF 60 INTERNATIONAL INSTITUTE FOR MANAGMENT DEVELOPMENT INDEX OF ECONOMIC FREEDOM 2013 WORLD: 11 OF 152 FRASER INSTITUTE, CANADA LOGISTICS PERFORMANCE INDEX 2014 WORLD: 42 OF 160 WORLD BANK EASE OF BUSINESS INDEX 2014 WORLD: 8 OF 138 WORLD ECONOMIC FORUM

LAND OF OPPORTUNITIES

2014 Index of Economic Freedeom

Fuente: The Heritage Foundation (http://www.heritage.org/index/)

Economías (7th amongst 178 economies )

Chile is one of the 10 countries with a high percentage of economic freedom.

90,1 89,4 82 81,6 81,2 80,2 78,7 76,5 76,2 76,1 65 70 75 80 85 90 95

Canada Chile Ireland Hong Kong Singapore Australia Switzerland New Zealand Mauritius Denmark

LAND OF OPPORTUNITIES

Corruption Perception Index 2013 (22nd amongst 176 economies).

Fuente: Transparency International, 2013 (www.transparency.org)

Amogst the least corrupt countries in the world having high levels of transparency.

160 106 106 83 72 40 22 15 14 9 8 7 5 3 1 20 40 60 80 100 120 140 160 Venezuela Bolivia Argentina Peru Brazil Spain Chile Hong Kong United Kingdom Australia Netherlands Switzerland Singapore Finland Denmark

LAND OF OPPORTUNITIES

Standard and Poor's affirmed in 2013* Chile's rating for foreign currency obligations in AA. Previously, the rating was A + and this rise equaled country economies like Japan. This improvement in country risk classification was a recognition of the economic leadership of Chile, characterized by high growth, low debt and strong macroeconomic stability. Projections: A low level of government debt, along with growing local financial markets, should support the stability and growth of GDP in Chile, despite increasing external uncertainty and potentially slow global growth in the coming years. Standard and Poor's estimates that the odds are low to change the rating of the country within the next two years, assuming the continuation of the main economic policies.

* Ratings revised in December 2013.

LAND OF OPPORTUNITIES

Chile is a country open to the world with dynamic and steady pace that attracts the attention of those seeking opportunities. According to the

ranking "Ease of Doing Business 2014" prepared by the World

Bank, the country ranks 34 among 189 countries, ranking first

place in the countries of Latin America and the Caribbean.

A PLACE TO LOOK FORWARD TO

• 1. AN IDEAL ENVIRONMENT FOR THE OPPORTUNITIES

A culture marked by work and effort has allowed Chile to grow and develop steadily. The Global Competitiveness Report 2013, published by the International Institute for Management Development (IMD), Chile is ranked at 30th among 60 countries, leader in

Latin America.

• 2. ALWAYS MOVING AND COMMITTED TO PROGRESS

A PLACE TO LOOK FORWARD TO

Its strong desire of openness has led to Chile to build strong external relationships that are based on openness, reliability and predictability.

Today there are effective bilateral treaties to avoid double taxation with over 20 countries, and its tax system is transparent,

competitive and largely computerized.

• 3. PRIVELEDGE INTERNATIONAL RELATIONS

In the past 25 years, (FDI) Foreign investment has played a decisive role in the growth and economic development in Chile and captured flows have continued to rise. In addition, the World Investment Report published by the United Nations in 2013, ranked Chile in the 12th in attracting foreign

investment worldwide.

• 4. A COUNTRY THAT ATTRACTS

Success story of Foreign Direct Investment An average of 7.4% of GDP in the last decade

Fuente: Inteligencia Comercial ProChile, con cifras del Banco Central de Chile.

0,0% 2,0% 4,0% 6,0% 8,0% 10,0% 12,0% 5,7% 7,3% 5,7% 4,8% 7,3% 8,5% 7,4% 7,2% 9,3% 10,7% 7,3% FDI as % of GDP

A PLACE TO LOOK FORWARD TO

Fuente: Inteligencia Comercial ProChile, con cifras del Comité de Inversiones Extranjeras.

FDI in CHILE: SECTORS

FOREIGN INVESTMENTS RECIEVED D.L. 600 Sectorial Distribution 1974-2013 US$ 100,757 millions

Mining 36% Electricity, Gas and Water 16% Financial services 11% Communication s 8% Trade 5% Insurance 4% Chemicals 4% Food sector 4% Transport 3% Other 9%

A PLACE TO LOOK FORWARD TO

FDI in CHILE: COUNTRIES

Fuente: Inteligencia Comercial ProChile, con cifras del Comité de Inversiones Extranjeras

FOREIGN INVESTMENTS RECIEVED D.L. 600 Sectorial Distribution 1974-2013 US$ 100,757 millions

Europe 35% United States 24% Canadá 19% Japón 10% Australia 4% México 2% Brasil 1% Colombia 1% Others 4%

A PLACE TO LOOK FORWARD TO

CHILEAN INVESTMENTS ABROAD : SECTORS

Services 46% Industry 26% Energy 19% Mining 5% Agro-Food Sector 4%

US$ 86,058 millions. 1990 – June 2013

In services, investment has been concentrated in the retail, information technology, real estate and construction services, air and sea transport. Investment in Industry has been directed to the manufacturing, metallurgy, metallurgy, pulp and paper, chemicals and pharmaceuticals.

Fuente: Inteligencia Comercial ProChile, con cifras de DIRECON

A PLACE TO LOOK FORWARD TO

Exports of services (Balance of Payments of the Central Bank) in 2013 totaled about US $ 12,800 million, an

increase of 3% compared to 2012.

Chile is the country with the highest penetration of

telecommunications in Latin America, with 41%

in Internet and Mobile Phone 138 %. Securing the highest position in 2012 in the connectivity index of Latin America (DHL Global Connectedness Index).

DEVELOPMENT QUALITIES OF THE SERVICE SECTOR

With its copper production, Chile has become the heart of mining industry development in South America. From 15 world leading Engineering offices in mining, 11 of them have branch offices in Chile. The development of Chilean suppliers of goods and services for the mining industry has generated an export line up of excellent quality and competitiveness, generating world- class professionals.

GLOBAL FORCE IN COPPER

CONTACTO

Información General www.thisischile.cl Información Comercial www.prochile.gob.cl/importadores Inversiones www.inversionextranjera.cl Turismo www.chile.travel Directorio Exportador www.prochile.gob.cl/ importers/exporter-directory