Category: Education

Presentation Description

No description available.


Presentation Transcript

U.S. Commercial Service Chile: 

U.S. Commercial Service Chile Chile Briefing Trade Americas Conference Denver, CO May 4-5, 2006 Americo Tadeu Senior Commercial Officer U.S. Embassy Santiago


Geography 2,600 miles long Just 100 miles wide (average) Diverse climate and geography Opposite seasons from the U.S. Isolated by mountains, desert and sea 16 million population Principal city and capital - Santiago

Brief History: 

Brief History Spanish Colony 1541 – 1810 Socialists take power 1970 Economy destroyed Military coup 1973 3,000 died from both sides “Chicago Boys” take charge Open economy begins to grow - 1974 Structural changes - 1981 Democratic elections in 1989

Chile Today: 

Chile Today President-Elect Michelle Bachelet takes office March 11, 2006 (2006-2010) “Concertacion” Coalition Christian Democrats Party for Democracy Socialists Broad Consensus – No Change Open Economy – Free Market Democratic Institutions

Sustained Economic Growth: 

Sustained Economic Growth

Unemployment Level : 

Unemployment Level Source: Banco Central de Chile

Price Stability Annual Inflation (%): 

Price Stability Annual Inflation (%)

Declining Poverty Rates (as a percent of population): 

Declining Poverty Rates (as a percent of population) Source: Mideplan, Biannual CASEN Study, 2003 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.

Business - Why Chile?: 

Business - Why Chile? Free Trade Agreements Steady 6% growth Prudent fiscal policies Stable democratic government Solid business practices Rule of law

Investment Welcome: 

Investment Welcome “A” credit rating (S&P and Fitch Ratings) $7.2 billion in new foreign investment in 2004 (173% increase) Since 1974, total FDI in Chile has topped $41 billion. Top investors: Spain, the U.S., Canada and the U.K. Santiago selected as “Best City for Business’’ in Latin America A springboard to other markets

Our Free Trade Agreement: 

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 ( Commitments on labor rights and environmental protection Visit our U.S. Exporters Guide to the US – Chile FTA at Effective January 2004

Certificates of Origin: 

Certificates of Origin Certificates of Origin may be provided by the importer, exporter or producer. Remain valid for four years from date of issue. Can cover multiple shipments of identical merchandise. Importers have up to one year to claim a refund for excess duties paid.

Certificates of Origin: 

Certificates of Origin Documents supporting claims of origin must be maintained for at least five years. Supporting documents can include: Bills and/or receipts for materials used Commercial invoices Letter or affidavit from producer Certificate of origin for components used

U.S.-Chile Trade in Merchandise/Goods (In US$ Billions): 

U.S.-Chile Trade in Merchandise/Goods (In US$ Billions) U.S. Department of Commerce, Bureau of the Census (

Main U.S. Exports to Chile: 

Main U.S. Exports to Chile HS Chapter (2 digits) US$ Millions CIF 2004 2005 Total Exports: (HS) 3,605.9 5,197.7 84--INDUSTRIAL MACHINERY & PARTS 84 1,090.0 1,294.6 27--MINERAL FUEL, OIL ETC. 85 324.4 867.4 87--VEHICLES, NOT RAILWAY 27 308.5 535.0 85--ELECTRIC MACHINERY/TELECOM EQUIP. 87 356.1 435.7 88--AIRCRAFT, SPACECRAFT 39 59.3 334.6 90--OPTIC, MEDICAL, SURGICAL INSTRUM. 90 167.0 203.7 39--PLASTICS AND ARTICLES THEREOF 29 192.4 195.0 98--SPECIAL OTHER 38 145.7 190.9 29--ORGANIC CHEMICALS 28 92.7 97.0 38--CHEMICAL PRODUCTS 98 77.4 81.6 Source: Bureau of Census

Main Chilean Exports to the U.S.: 

Main Chilean Exports to the U.S. Source: Bureau of Census HS Chapter (2 digits) US$ Million CIF 2004 2005 Total Exports: (HS) 4,732.2 6,665.7 74--COPPER AND ARTICLES THEREOF 08 731.8 1,699.0 08--EDIBLE FRUIT & NUTS 44 925.2 1,059.0 44--WOOD AND ARTICLES OF WOOD 74 914.4 881.8 03--FISH & CRUSTACEANS 03 635.2 717.9 26--ORES, SLAG AND ASH 22 117.7 366.6 27--MINERAL FUEL, OIL ETC. 71 136.8 363.4 71--PRECIOUS STONES & METALS 27 147.8 260.1 28--INORGANIC CHEMICALS 26 113.9 184.3 22--BEVERAGES, SPIRITS AND VINEGAR 28 152.6 166.6 20--PRESERVED FOOD 29 94.8 102.6

Main Destinations for Chilean Exports: 

Main Destinations for Chilean Exports Source: SOFOFA

Best Prospects for U.S. Exports: 

Best Prospects for U.S. Exports Construction Electric Power Equipment Medical Equipment & Healthcare Computer Hardware / Software & Services Financial Services Franchising Food Processing & Packaging Equipment

Best Prospects (cont.): 

Best Prospects (cont.) Environmental Technologies & Services Mining Equipment Plastics Machinery & Materials Security Equipment & Safety Telecommunications Equipment & Services Travel & Tourism

Mining Equipment and Services: 

Mining Equipment and Services Industry Profile


1. Market Overview 2. U.S. Position 3. Competitors 4. Principal Sub Sectors 5. Commercial Opportunities 6. Other Resources Contents

Market Overview: 

Market Overview In 2005, the local mining equipment and services market exceeded $1 billion and is expected to grow at an annual minimum average of 10% for the next 5 to 8 years. Over $18 billion in identifiable projects are scheduled to break ground by 2013.


Chile is the world’s largest producer and exporter of potassium nitrate, sodium nitrate, copper, and lithium Chile is the world’s second largest producer of rhenium, iodine, and molybdenum Chile produces substantial amounts of gold and silver Market Overview


Market Overview The Chilean Mining industry is made up of… over 70 private mining companies that own 120 mining operations, with Chilean and multinational ownership one state-owned mining corporation, CODELCO, one of the largest copper producers and exporters in the world over 270 supplying companies, most of which represent the U.S. as well as other brands of imported products, 38 of which are members of APRIMIN


Copper prices increased from US$0.65/lb in 1998 to US$3.14/lb in April 24, 2006, creating strong incentives for new mines and mining projects. Between 2003 and early 2006, the number of active mines jumped from 70 to 220. The launch of new mining projects and the US -Chile Free Trade Agreement (2004) are the driving forces for the demand that reached a peak of US$1.6 billion/year in 2005. Market Overview

Mining Equipment & Supplies and Services : 

Mining Equipment & Supplies and Services Source: These figures are unofficial estimates and were elaborated based on Chilean Customs Statistics and mining industry experts’ estimates. Market Overview

U.S. Position: 

U.S. Position Historically, 50-55% of all mining equipment imports come from the U.S. This high market share is supported by excellent quality, after-sales service, and compliance with delivery dates. However, with explosive market growth and the entrance of new suppliers, the U.S. market share has decreased from 52% in 2003 to 40% in 2005.


During 2005, manufacturers of mining equipment from Brazil, Canada, Germany, Japan and Sweden were the most aggressive competitors for the U.S. suppliers in the Chilean market.. The U.S. plus the five traditional suppliers, provided 80% of Chilean imports. The mix of mining equipment suppliers has changed by the increased participation of smaller suppliers from the rest of the world, particularly from Asia. Competitors

Principal Sub Sectors: 

Principal Sub Sectors Copper mining Silver mining Other metals and minerals include: Gold - Boron Rhenium - Selenium Lithium - Calcium Carbonate Iodine - Sodium Chloride (rock salt) Molybdenum - Diatomite Manganese Iron ore

Commercial Opportunities: 

Commercial Opportunities Many opportunities currently exist for U.S. firms and exporters, in the following areas: New mines and modernization of existing facilities Mining Equipment Crushers Grinders Off-road vehicles Cabbed chassis Rock cutters and necessary parts 360 degree revolving excavators Cranes and screening machines


Production technology Biotech applications to copper processing Innovative companies to provide solutions to cut costs Robotics, automation, continuous mining Environmental services Codelco is currently obtaining ISO certification and must meet higher environmental standards Commercial Opportunities

Other Resources: 

Other Resources Chilean Mining Ministry: Chilean Geology & Mining Service: Chilean Mining Metallurgic Center of Research: National Mining Society: Chilean Mining Council: Large Mining Suppliers Association: Minería Chilena (Mining Magazine): Supplying CODELCO:

Contact Us: 

Contact Us Interested in more information on this sector or in obtaining assistance from the U.S. Commercial Service in Chile? Please visit or contact Carlos Capurro at:

We Can Help!: 

We Can Help! Counseling and Advocacy Finding International Partners Customized Market Research Trade Events Visit to locate your nearest U.S. Export Assistance Center and get information on our services.


U.S. Embassy / Department of Commerce Santiago, Chile E-mail: Tel: (56-2) 330-3316 Fax: (56-2) 330-3172 Thank you!

authorStream Live Help