export opportunities to chiledeclining poverty rates (as a percent of population) source: mideplan,...
TRANSCRIPT
U.S. Commercial Service Chile
Export Opportunities to Chile
June, 2012
Isabel Margarita Valenzuela Commercial Specialist
U.S. Embassy Santiago
U.S. Embassy Santiago
e
• 124 U.S. Employees
• 181 Chilean Employees • 7 Federal Agencies • Total Annual Budget: $12 million • Built in 1993
Key Facts
• Nearly 2,800 miles long
• Just 100 miles wide (average)
• Diverse climate and geography
• Opposite seasons from the U.S.
• Isolated by mountains, desert & sea
• 17.2 million population
• Principal city and capital - Santiago
Brief History
• Spanish Colony 1541 – 1810
• Allende/Marxists take power – 1970
• Military coup in 1973
• Open economy begins to grow--1974
• Structural changes – 1981
• Return to Democracy -- 1989
Economic Transformation
• “Chicago Boys” take charge in 1974 • Huge budget deficit eliminated • State-owned firms privatized • Tariffs slashed • Foreign investment restrictions ended • Economy begins to grow rapidly
Chile Today
• President Sebastian Piñera took office on March 11, 2010. Term runs from 2010-2014. • Transition from Center-Left “Concertación” Coalition to Center-Right “Alianza” of the President • Broad Consensus
• Open Economy – Free Market
• Democratic Institutions
Sustained Economic Growth
-3.0 -2.0 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0
90 - 94 95 - 99 00 - 04 2005 2006 2007 2008 2009 2010 2011
6.4 5.2
3.9
5.6 4.3
5.1
3.2
-1.5
5.0
6.5
3.6 3.2 1.9
4 5
4.3 4.4
-2.1
5.8 4.6
Chile Latin America & Caribean Source: Central Bank, Chile
Unemployment Level
0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0%
10.0%
´01 ´02 ´03 ´04 ´05 ´06 ´07 ´08 '09 ´10 ´11 Source: Banco Central de Chile
Price Stability Annual Inflation (%)
Source: Asociación de Bancos e Instituciones Financieras
-4,0-2,00,02,04,06,08,010,0
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
8,26,6 6,0
4,72,3
4,52,6 2,8
1,03,0 3,72,6
7,8 7,1
-1,4
3,04,4
Declining Poverty Rates (as a percent of population)
Source: Mideplan, CASEN Study, 2010
Note: Next Casen Study will be done on 2012
0
10
20
30
40
50
1987 1990 1992 1994 1996 1998 2000 2003 2006 2009
45.1 38.6
32.6 27.5
23.2 21.7 20.6 18.8
13.7 15.7 17.4 12.9
8.8 7.6 5.8 5.6 5.3 4.7 3.2 3.8
Below Poverty Line Indigent
Note: Indigence is defined as having income inadequate for a basket of goods sufficient to support a family of 4. Poverty is defined as income less than 2x the value of the same basket.
Chile: Leader in Free Trade
FTAs: Canada 1997 Mexico 1998 Central America 1999 European Union 2003 South Korea 2004 United States 2004 Trans-Pac. Partnership 2005 China 2006 Japan 2007 Colombia 2009
Australia 2009 Peru 2009
CEAs: Bolivia 1993 Venezuela 1994 Ecuador 1995 Mercosur 1996 India 2006
TPP = New Zealand, Singapore, Brunei, U.S., Chile, Australia, Peru, Vietnam, Malaysia
Business - Why Chile?
• Free Trade Agreements – 58+ • Steady, positive growth • Prudent fiscal policies • Stable democratic government • Solid business practices • Rule of law • Low corruption
Economic Indicators and Facts
• Overall GDP ‘11: $243.1 billion; GDP Growth: 6.5% • 2011 Per Capita Income: US$16,172 (adj. for PPP) • Unemployment 2011: 6.9%; 2010: 7.1% • Import growth: 30% (2010 over 2009) • Inflation 2011: 4.4% • Newest Member of OECD (best growth rate in 2011) • Mobile Phone Penetration: + 100%
"Cole, Catherine A" <[email protected]>
AON 2011 Political Risk Map Americas-South
Source: AON Corporation 2011
Ø Growth of exports
Ø Great management capacity
Ø Transparency of financial institutions
Ø Availability of qualified engineers & other professionals
Ø Good level of telecommunication technology (97% mobile penetration; decreasing fixed lines)
Strengths
Source: Facultad de Economia de la Universidad de Chile
"Cole, Catherine A" <[email protected]>
Challenges
Ø Unemployment / underemployment Ø Low GDP per capita Ø Low level of value added to exports Ø High labor costs Ø Low productivity rates Ø Deficient educational system
Investment Welcome
• “A+” credit rating (S&P) • $ 13.7 billion in new foreign investment in
2011 (compared with $9.0 billion in 2010) • Top investors: U.S., Spain, Canada, U.K.,
Australia • Santiago selected as “Best City for Business’’
in Latin America • A springboard to other markets
U.S. Companies Invest in Chile
• Wal-‐Mart placed a big bet on Chile in late 2008 Ø The major shareholder in D&S, one of the country’s largest retail chains
• AES CorporaFon owns AES Gener Ø Largest thermal generator and second largest generator of electricity in Chile Ø ConstrucFng 4 new generaFon faciliFes in Chile
• Freeport-‐McMoRan Copper & Gold Ø 51% interest in Chile’s El Abra mine Ø 80% interest in several other mining operaFons around Candelaria
• Investments like these and others tend to inspire even more confidence in the Chilean economy
Our Free Trade Agreement
• 95% + of bilateral trade in goods duty-free • 75% + of U.S. farm goods duty-free by 2008 • Stronger protection of intellectual property rights (IPR) • Open and fair government procurement (www.chilecompras.cl) • Commitments on labor rights and environmental protection • Phases out all tariffs within 12 years (by 2016) • U.S. market share was up to around 20% in 2010; under 15% in
2003 Visit our U.S. Exporters Guide to the US – Chile FTA at http://www.buyusa.gov/chile/en/ftaguide.html
Effective January 2004
U.S.-Chile Trade in Merchandise/Goods
(In US$ Billions)
0
2
4
6
8
10
12
14
16
20012002200320042005200620072008200920102011
3.5 3.8 3.74.7
6.7
9.69
8.2
67
9.1
3.1 2.6 2.73.6
5.2
6.8
8.3
12.1
9.4
10.9
15.9
Imports from Chile
Exports to Chile
U.S. Department of Commerce, Bureau of the Census (www.census.gov)
*
Main U.S. Exports to Chile
NAICS US$ billions FAS
2008 2009 2010 2011 Total Exports (billions): 11.8 9.3 10.9 15.9 324- Petroleum & coal products 3.5 1.7 2.1 4.6 333- Machinery, except electrical 1.9 1.7 1.9 2.6 334- Computer & electronic products 1.2 1.1 1.4 1.7 325- Chemicals 1.5 1.0 1.3 1.6 336- Transportation equipment 1.2 1.6 1.2 1.6
Source: TradeStats Express
Main Chilean Exports to the U.S.
Source: Bureau of Census
NAICS US$ Billions Customs Value
2008 2009 2010 2011
Total Exports (billions): 8.2 6.0 7.0 9.0 331- Primary metal mfg. 3.4 1.7 2.6 3.9 111- Agricultural products 1.4 1.5 1.6 1.6 321- Wood products .66 .50 .51 .57 311- Food manufactures .45 .46 .44 .54 325 - Chemicals .37 .27 .30 .47 114- Fish, fresh/chilled/frozen & others .30 .31 .31 .40 312- Beverages & tobacco products .22 .27 .28 .30 212- Minerals & Ores .25 .18 .21 .26
Main Destinations for Chilean Exports (2010)
Source: www.aduana.cl
23.8%
17.5% 10.3%
10.0%
8.0%
30.4%
China EU Japan U.S. Latin America Others
2012 Growth Sectors / Best Prospects for U.S. Exports
• Agricultural Machinery & Equipment • Construction • Energy / Electrical Power Equipment • Food Processing & Packaging Equipment • Healthcare • Mining Equipment • Safety & Security
2012 Growth Sectors / Best Prospects for U.S. Exports (cont.)
• Telecommunications Equipment & Services
• Travel & Tourism Services
• Water Resources Equipment
Trade Events in Chile
Ø FIDAE – Santiago, Chile March 2012 - 400 exhibitors from 30 countries
Ø EXPOMIN – Santiago, Chile April 2012 - 1,200 exhibitors from 36 countries
Ø EXPO HOSPITAL – Santiago, Chile June 2012 – 2nd time
Ø EXPONOR – Antofagasta, Chile June 2013 – 1,000 exhibitors from 30 countries
Ø IFT Energy – Santiago, Chile May 2013 – 2nd time
Ø CES (Consumer Electronics)
Ø National Plastic Exhibition
Ø Pow Wow (Travel & Tourism)
Ø AWWA ACE (American Water Works)
Ø InfoComm
Ø AACC (Clinical Laboratory)
Ø MINEXPO
Ø WEFTEC
Ø CTIA Enterprise & Applications
Ø Pack Expo
ü January 10-13, 2012
ü April 1-5, 2012
ü April 21-25, 2012
ü June 10-14, 2012
ü June 13-15, 2012
ü July 15-19, 2012
ü September 24-26, 2012
ü September 29, 2012
ü October 8-11, 2012
ü October 28-31, 2012
Int’l Buyer Program (IBP) Events
We Can Help!
• Counseling and Advocacy • Finding International Partners • Customized Market Research • Trade Events
Visit www.export.gov/chile to locate your nearest U.S. Export Assistance Center and get information on our services.
U.S. Embassy / Department of Commerce Santiago, Chile
www.export.gov/chile E-mail: [email protected]
Tel: (56-2) 330-3412 Fax: (56-2) 330-3172
Thank you!