(July 28, 2011) The Chilean “Tall” Training Ship Buque Escuela Esmeralda recently called on the Ports of San Diego and San Francisco to highlight trade between Chile and California.

(From left) Carlos Honorato, International Vice Director, ProChile; Susanne Stirling, Vice President International Affairs, CalChamber; Cristobal Barros, Executive Director, Chile-California Plan.

ProChile

The recent events were hosted by ProChile, the Trade Commission of Chile, a part of the Ministry of Foreign Affairs—responsible for implementing and enhancing Chile’s trade policy. ProChile’s provides the necessary tools to aid Chile’s economy in its process of going international. ProChile’s 56 Trade Offices and Agencies are located in 43 countries.

On a related note, the Chile-California Council, a group of 25 individuals from Chile and California representing business, government, academia, the arts, education and science have launched a plan: Chile-California, a strategic association for the 21st Century. The three key initiatives are development of human capital, increase in trade and investment opportunities, and promotion of research and development. 

(From left) Rolando Ortega, Chilean Consul General in San Francisco; Carlos Hinrichsen, International Affairs Director, Duoc University Chile; Susanne Stirling, Vice President International Affairs, CalChamber; Jorge Martinez Duran, President, Valparaiso Chile Chamber of Commerce.

The most effective areas for cooperation will be: renewable energies, entrepreneurship and innovation, seismology, astronomy, information technologies, biotechnology, education, culture, agriculture, green initiatives, tourism, motion picture industry, water resource management, infrastructure, and scholarships for internships and college/ university studies. Agustin Huneeus of Quintessa Winery serves as Chair of the Council. Mrs. Susanne Stirling, Vice President of the CalChamber is also a member of the Council.

U.S.-Chile Free Trade Agreement

Since the U.S.-Chile Free Trade Agreement was implemented on January 1, 2004, bilateral trade between Chile and the United States has doubled and both trade and investment opportunities abound. Under the Free Trade Agreement, 85 percent of industrial products are traded without duties together with 75 percent of farm production. After just ten years, all trade in non-agricultural goods will take place without tariffs or quotas; for agriculture, the phase-out will take 12 years.

Two-way trade in goods between the United States and Chile increased to $17.9 billion in 2010. According to the Office of the U.S. Trade Representative, exports to Chile from the United States have risen by over 90 percent since implementation of the Agreement. Exports to Chile of petroleum, machinery, and fertilizer from the United States have experienced a marked increase since 2003.

Chile is the United States’ 24th largest export partner with over $10.9 billion in exports. Top exports from Chile to the United States include copper cathodes, fresh grapes and salmon. Top exports from the United States to Chile include transmission receptors, computers and diesel trucks. Nearly 12,000 US firms export approximately 5,000 different products to Chile. Over 2,000 Chilean firms exported as many different products to the US.

According to the American Chamber of Commerce in Chile, over 300 US companies have investments in Chile, with over 40 of them using Chile as a platform for services in the region. Chilean affiliates of US direct investors are estimated to employ over 58,500 people and their value-added contributed 3.2 percent to Chile's gross domestic product.

Chile

Chile is nearly twice the size of California and home to 17 million people and renowned copper mines. Chile holds $15.3 billion in reserves. In 2003, the Chilean economy began to recover after a 1999 slump, reaching a 3.3 percent growth in real GDP. GDP grew by 4.2 percent in 2006. Since 1990, there has been more than $50 billion in direct foreign investment in Chile. Chile has the most stable and fastest growing economy in the region which puts it in the best position to promote democracy and political freedom. Chile has now signed approximately 60 Free Trade Agreements with various countries round the world. Chile is the only South American nation to be a member of the Paris-based OECD.

Chile is California's 28th largest export partner. In 2010, California exported more than $790 million to Chile. This included petroleum and coal products, computer and electronic products, machinery, and transportation equipment. California imports the following from Chile: fresh fruits, forestry products, wines, and seafood.

For more information see CalChamber’s Chile Trading Partner Portal at: www.calchamber.com/Chile. 

Staff Contact: Susanne Stirling