1 Free Trade Agreements: Opening the Doors of Opportunities Mr. Hugo Lavados Director ProChile - Trade Promotion Office December, 2005

2 Summary Basic Data Strategy and Policies A Really Developing Country What others say about Chile Opportunities

3 Basic Data Strategy and Policies A Really Developing Country What others say about Chile Opportunities

4 Source: Central Bank of Chile - U.S. Census Bureau *Gross State Product Also, Chile: Inflation rate (e) ,2% Interest rate ,5% Unemployment rate (oct 2005) 8,1% Basic Data

5 Strategy and Policies A Really Developing Country What others say about Chile Opportunities

6 ECONOMIC STRATEGY Macroeconomic stability. Full operation of market and regulations required to ensure their efficiency. Economy open to international trade, FDI and financial flows. Wide range of social policies to promote inclusion of all Chilean families in the development process. Strategy and Policies

7 Maximum tariff - rate of 6 % Real average tariff duty rate is: 2,1% Floating exchange rate. No restrictions to foreign trade, FDI or financial flows Active participation at WTO An extensive network of Free Trade Agreements (FTAs) COMMERCIAL POLICY In 2005 Strategy and Policies

8 P4 Chile’s Trade Agreements Trade Agreements Signed -China Under Negotiation -India -Japan

9 Basic Data Strategy and Policies A Really Developing Country What others say about Chile Opportunities

10 Source: Central Bank of Chile GDP Evolution (f) A Really Developing Country

11 Source: International Monetary Fund, IMF Annual Average GDP Growth (Selected Economies, %) A Really Developing Country

12 GDP per capita at PPP Evolution (US$) (f) A Really Developing Country Source: International Monetary Fund, IMF

13 Reduction of Poverty in Chile ( ) (% of population) A Really Developing Country Source: National Statistics Bureau – INE, Mideplan

14 Household Equipment (% of Households) Source: National Statistics Bureau A Really Developing Country

15 Chilean Foreign Trade (million US$) Source: Central Bank of Chile A Really Developing Country

16 Source: ProChile A Really Developing Country Non-Commodities Exports (f)

17 Basic Data Strategy and Policies A Really Developing Country What others say about Chile Opportunities

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19 Source: Economist Intelligence Unit, Business environment ranking (Best place in the world to conduct business over the next five years, selected economies) What others say about Chile

20 Source: Economist Intelligence Unit 100= Maximum risk Country Risk Ranking (2005) What others say about Chile

21 Basic Data Strategy and Policies A Really Developing Country What others say about Chile Opportunities

22 Services for: Export Oriented Activities; and Growing Income Sectors.  I.T.  Audiovisual services  Quality and environmental requirements  Adult's education and training  Financial services  Services related to new demography Business Opportunities

23 Business Opportunities PRODUCTS  Mining  Processed agricultural products (fruits, wines, meat, dairy products)  Forestry (manufactures of wood, furniture, panels, etc.)  Physical Infrastructure (roads, energy, etc.) PRODUCTS linked to export industries:  Machineries, equipment, intermediate goods.  Logistic equipment and services.  Durable goods, with high income elasticity.

24 Traders and specialists - Trading for SME. - Business Planning for Medium Size Co. - Product standarization to accomplish requirements for export (certifications, regulations, etc). Business Opportunities

25 Chilean business environment. Free trade agreements signed by Chile. Chile is a Springboard for businesses, trade and investment. Business Opportunities in Chile

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