1. 13/09/2015 Presentation title UNCLASSIFIED 1 JOLANTA POLK COMMERCIAL OFFICER CHILE

2. 13/09/20152 CHILEAN EXPECTATIONS

3. 13/09/20153 Geography Southwest coast of South America. No direct flights to UK - 14 hours via Paris Approximately 4,300 km (2,666 miles) from the Atacama Desert in the North to the polar icecaps in the South.

4. 13/09/20154 Chile: Facts & Figures Total population17.1 million Greater Santiago6 million Population growth rate1.1% Workforce6.8 million Literacy rate95.7% Life expectancy79 years Inflation rate 2012*2.5% Unemployment **6.7% GDP 2011USD 248bn GDP growth 20116.0% GDP growth estimate 20124.5-5% GDP per capita 2011 (PPP)USD 17,125 * 12 monthly in June 2012 ** July 2012 Sources: INE, Banco Central de Chile, IMF, Economist Intelligence Unit, World Bank, UN Chile: Facts & Figures Total population17.1 million Greater Santiago6 million Population growth rate1.1% Workforce6.8 million Literacy rate95.7% Life expectancy79 years Inflation rate 2012*2.5% Unemployment **6.7% GDP 2011USD 248bn GDP growth 20116.0% GDP growth estimate 20124.5-5% GDP per capita 2011 (PPP)USD 17,125 * 12 monthly in June 2012 ** July 2012 Sources: INE, Banco Central de Chile, IMF, Economist Intelligence Unit, World Bank, UN

5. 13/09/20155 Northern Chile Tourism Mining Astronomy

6. 13/09/20156 Central Chile Metropolitan region Vineyards Agriculture

7. 13/09/20157 Southern Chile Tourism Forestry/Fisheries Sheep and Cattle ranching

8. 13/09/20158 Economy - highlights Population: 17mn (2012 est.) – 60 th in the world GDP: $248bn (2011) – 45 th in world (5 th largest in SA) GDP per capita: $17,125 (2011) – 52 nd in world Growth since 1990 averaging 5% pa 2010 - 6.1%2011 - 6%2012 - 5%? Aspires to be a developed country by 2020

9. 13/09/20159 How? Trade in goods and services – 73% of GDP Low inflation – Central Bank target of 3% Ease of doing business ranking: 39 th out of 183 Free trade – world’s largest network of FTAs

10. 13/09/201510 UK-Chile connections UK exports of goods and services have increased five- fold since 2003 Chief exports from UK – crude oil, road vehicles, pharmaceuticals, industrial machinery and beverages Chief imports from Chile - Fruit and vegetables, wine and meat products Trade in goods between Chile and the UK has declined in the first six months of this year.

11. 13/09/201511 Advantages established by law EU-Chile Economic Association Agreement (since 2002) What the agreement means for Goods and Services? - The majority of tariffs on UK goods entering Chile were eliminated on 1 February 2003, as too were most tariffs on Chilean goods entering the UK. Most other tariffs completed in 2010. - Chile and the EU are committed to reducing non-tariff barriers. - Aims to facilitate trade by reducing technical barriers.

12. 13/09/201512 Doing Business in Chile The “English of South America” Elevenses/onces “Islanders” Conservative Punctual (for Latin America!) Long relationship with UK Language not usually a barrier – but Spanish does help Face-to-face culture - Visit the market Do not treat Chile as a third world market A springboard to the region – “strategy not process”

13. 13/09/201513  Different ways to become a professional: -on the job training – popular amidst the lower-earning bracket of population (often uncertified but skilled in the job) -Liceos tecnicos – secondary school education. 4-year long but only the last two years dedicated to vocational training. First 2 common plan (lower middle class, generally poor background – state-funded) -Technical, post-secondary institutes (usually 1 – 2 years in duration) – varied quality and often uncertified -Universities – especially two technical universities – Duoc and Inacap TVET IN CHILE

14. 13/09/201514 Kinds of Schools SchoolsStudents Total% % Municipal 43045.5%93.19945.6% Private Subsidised 44547.0%86.66442.4% Private 697.5%24.44212.0% Total 944100.0%204.305100.0%

15. 13/09/201515 Kind of Institution InstitutionsProgramsStudents Centro de Formación Técnica732.934128.566 Professional Institute446.862224.301 University606.714587.297 Total17716.510940.164

16. 13/09/201516 TVET opportunities Mining -Chile is the world’s biggest producer of copper with 33% of production -Most international mining companies are present in Chile: Xstrata, Anglo- American, BHP, Codelco -Mining project portfolio for 2013 is 104 billion US dollars -4.3% of the investment comes from the UK -The biggest challenge is qualified staff – in the next 10 years New projects demand more qualified staff in all ranks of qualification. Critical factors: Cost, Recruitment, Training and Maintenance - Chile needs 46,000 qualified and certified technicians - 1 secondary mining school to open this March - 2 technical institutes with mining careers

17. 13/09/201517 TVET opportunities Certification -Hardly any international certification in:  Energy  Tourism  Mining  Skilled labour such as carpentry, mechanics, IT etc English for professionals -Agriculture – Chile to become food power by 2020 -Medicine, banking, law -Tourism -Mining and energy -Technology