Economic and Trade Integration
The Chilean Case
CHILEAN PROMOTION BUREAU
1. About Chile
2. Chile’s orientation towards exports
3. Investments
4. Pacific Alliance
Snapshot of the Chilean economy
Economy
GDP 2012
US$ 268 billion (IMF)
GDP per capita (PPP, 2012)
US$ 18,419 (IMF)
1° place in South America
Actual interest rate (Monetary
Policy February 2013)
5.0%
Unemployment rate (2012)
6.4%
External Public Debt (2012)
US$ 23.5 billion
Exports (2012)
US$ 78.8 billion
Imports (2012)
US$ 70.6 billion
Chile’s Sovereign Ratings
Social
Fitch Ratings
A+
Population
16.6 million
Standard & Poors
AA-
Official Language
Spanish
Moody’s
Aa3
Currency
Peso
DBRS
AA-
Literacy rate
97%
Life expectancy
78 years
Source: Central Bank of Chile (www.bcentral.cl) / IMF (www.imf.org) / ProChile
1. About Chile
2. Chile’s orientation towards exports
3. Investments
4. Pacific Alliance
CHILE’S FREE TRADE AGREEMENTS
A country open to the
world: 22 signed FTAs with
61 countries
86% of world’s GDP
Existing agreements
Negotiated agreements
Agreements under negotiation
62% of world’s population
Malaysia
Turkey
Ecuador
Colombia
Australia
Peru
Cuba
Panama
Japan
India
P-4
China
93% of our export market
EFTA
South Korea
USA
UE
Central America
Mexico
Canada
Mercosur
Venezuela
Bolivia
 Chile has the largest network of Free Trade Agreements in the world
CHILEAN EXPORTS
CHILEAN PROMOTION BUREAU
Geographically Diversified Exports…
…Still Concentrated in Copper
Total Exports 2012
US$ 78.3 billion
United States
12,2%
Other
4,3%
China
23,3%
Agribusiness
4,7%
Seafood 5,1%
Wine 2,3%
Other 1,5%
Fresh Fruit 5,5%
Japan
10,7%
Emerging Asia
(ex China,
Japon)
15,7%
Other minerals
6,5%
European
Union
18,0%
Latin America
15,8%
Forestry
Industry 6,7%
Copper 53,9%
Manufactures
13,8%
7
1. About Chile
2. Chile’s orientation towards exports
3. Investments
4. Pacific Alliance
Avoidance of Double Taxation agreements
Chile has signed
agreements to avoid
double taxation with 24
countries
Existing agreements
Negotiated agreements
Agreements under negotiation
Belgium
Denmark
Spain
France
Ireland
+ Denounced by Argentina
Poland
Portugal
UK
Sweden
Switzerland
Norway
Croatia
Canada
Colombia
Ecuador
Mexico
Peru
Argentina*
Brazil
Paraguay
South Korea
Thailand
Malaysia
New Zealand
Russia
Outstanding Business Environment
Doing Business 2013
Corruption Perception Index 2012
1
2
3
4
5
6
7
8
9
10
37
43
45
48
89
103
124
130
139
155
180
Category
Pos.
Protecting investors
32
(7 out of 177 economies)*
(20 out of 176 economies)*
(37 out of 185 economies)*
Singapore
Hong Kong
New Zealand
United States
Denmark
Norway
United…
Korea
Georgia
Australia
Chile
Peru
Colombia
Mexico
Uruguay
Paraguay
Argentina
Brazil
Ecuador
Bolivia
Venezuela
Economic Freedom Index 2013
Denmark
Finland
New Zealand
Sweden
Singapore
United Kingdom
United States
Chile
Uruguay
Spain
Costa Rica
Brazil
Peru
Colombia
Argentina
Mexico
Venezuela
1
1
1
4
5
17
19
20
20
30
54
69
83
94
102
105
165
Hong Kong
1
3
7
10
14
24
36
37
44
Australia
Chile
United States
U. Kingdom
Japan
Uruguay
Colombia
Peru
France
62
83
100
Italy
Brazil
China
Argentina
136
160
Chile leads Latin America.
*Selected economies.
Total FDI in Chile, 2003-2012
FDI in Chile, 2003-2012
30.3
(US$ billion)
According to UNCTAD,
Chile was one of the
seven economies in
which the inflow of FDI
showed the highest
growth in the last year.
22.9
15.5
12.9
12.5
7.2
7.1
7.4
2004
2005
2006
In 2012, Chile received
FDI worth US$30.3
billion; this
represented an
increase of 32.2% on
2011 and set a new
record.
15.3
4.3
2003
2007
2008
2009
2010
2011
2012
In 2012, Chile achieved a new record as a recipient of FDI.
Source: Central Bank of Chile
FDI in Latin America and Caribbean, 2012
Latin America and Caribbean: Largest FDI recipients,
2011-2012
(US$ billion)
30.3
Chile
Mexico
Colombia
 By contrast, FDI in Latin America and
the Caribbean rose by 6.7% to
US$173.3 billion.
65.3
66.7
Brazil
22.9
12.7
21.5
15.8
13.4
Peru
12.2
8.2
Argentina
12.6
9.9
 Global FDI fell by 13% in 2012 to
US$1.39 trillion, down from US$1.61
trillion in 2011.
2012
2011
Variation in FDI flows, 2012
(%)
32.2%
Source: Economic Comission for Latin America and the Caribbean, 2012.
 According to ECLAC, Chile was Latin America’s second
largest recipient of FDI in 2012; the inflow reached
US$30.3 billion, the highest ever in the country’s history.
6.7%
World
Latin America
Chile
-13%
Source:
CHILE, A COUNTRY FOR DOING BUSINESS
2013 Economic Freedom Index
Chile is a top 10 country with
highest rates of economic
freedom.
95
89,3
90
88
85
82,6
81,4
81
79,4
65
Economies
(7th among 184 economies )
Source: The Heritage Foundation (http://www.heritage.org/index/)
76,1
76
USA
76,9
Irlanda
Chile
Canadá
Suiza
Australia
Singapur
70
Hong Kong
75
Nueva Zelanda
79
Mauritius
80
1. About Chile
2. Chile’s orientation towards exports
3. Investments
4. Pacific Alliance
http://alianzapacifico.net/en/
http://alianzapacifico.net/en/
The Observing Countries
http://alianzapacifico.net/en/
MORE INFORMATION
General Information
www.thisischile.cl
Trade Information
www.prochile.gob.cl/importadores
Investment
www.inversionextranjera.cl
Tourism
www.chile.travel
http://alianzapacifico.net/en/