Bilateral Trade Chile US
A win win situation
PROCHILE
The Trade Commission of Chile
1
CHILE AT A GLANCE
Vital Statistics (2008)
Population:
GDP:
16.6 M
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
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General 6%
Hardware 0%
95% of imports pay no
tariffs
Sources: World Bank, EIU, IMF, A.T.Kearney 2006
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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)
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14
Tariffs
12
10
8
Applied
6
M FN
4
2
0
Source: Direcon
3
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
5
Chile’s Major Trade Partners (US $ Trillions 2008)
4.3 0.2
7.3 2.3
1.8 1.2
3.4 0.8
2.3 0.9
8.1 11.0
9.9 6.8
3.9 3.2
2.3 1.6
4.2 5.3
EXP
IMP
Source: DIRECON
1.1 5.0
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The World Economy 2009 and Chilean Exports
Red: Negative estimated PGB 2009
Yellow: Zero growth estimated 2009
Green: Positive estimated GDP 2009
Source: Direcon
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Chile’s Exports and Imports 2008
Exports Destiny
Others
South
Korea
5.6%
USA
11.6%
27%
Imports Origin
Others
28.5%
South
Korea
5.6% USA
19.4%
China
14.1%
EU
21.6%
Japan
10.4%
Mercosur
EU
10.3%
China
12%
Mercosur
19.5%
Japan
4.7%
9.7%
Source: DIRECON
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Free Trade Agreement Chile US
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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
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Financial services
Investments
Business mobility
Intellectual property
Competition policies
AD & countervailing measures
Safeguards
E-commerce
Government procurement
Labor
Environment
Dispute settlement
Source: DIRECON
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Chile US Bilateral Trade
Bilateral Trade Chile US
•
Millions of US$
M
25,000
•
20,000
15,000
•
10,000
5,000
•
0
2002
2003
2004
Exp Chile to USA
2005
Exp USA to Chile
2006
2007
Bilateral trade Chile US
Source: DIRECON
2008
•
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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Chile CA Bilateral Trade
Bilateral Trade Chile CA
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Millions of US$
•
M
3,000
•
2,500
2,000
•
1,500
1,000
•
500
0
2002
2003
Exp Chile to CA
2004
2005
Exp CA to Chile
2006
2007
Bilateral Trade Chile CA
Source: DIRECON
2008
•
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
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MOU Between Chile & California
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MOU between Chile and the State of
California.
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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
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3 Agreements of Cooperation
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California State University and the
Universidad Tecnológica de Chile
– advice on curriculum development
– college preparation and remediation
– development of articulation programs
with community colleges
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University of California Davis and the
Instituto de Investigaciones Agropecuarias,
the Asociación Nacional de Productores de
Semillas, and a group of the best universities
of Chile
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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
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and grapes