(September 30, 2010) The California Chamber of Commerce will be participating in the newly formed Chile-California Council, consisting of U.S. and Chilean government and business leaders.

The council, developed by the Chilean Ministry of Foreign Affairs, has the aim of promoting, supporting and providing guidance to public and private Chilean initiatives to be developed in the state of California. Susanne Stirling, CalChamber vice president, international affairs, sits on this council.

Council members met for the first time last Friday, September 24 in Los Angeles with Chilean President Sebastián Piñera, before his meeting with Governor Arnold Schwarzenegger to discuss cooperation on education, the environment and energy technology, and the signing of related memoranda of understanding.

The meeting between President Piñera and Governor Schwarzenegger followed a June 12, 2008 event when the Governor hosted former Chilean President Michelle Bachelet to further strengthen cooperative ties with the Republic of Chile by participating in a Memorandum of Understanding (MOU) signing ceremony.

Chilean President Piñera addresses the newly formed Chile-California Council, consisting of U.S. and Chilean government and business leaders. The council, developed by the Chilean Ministry of Foreign Affairs, has the aim of promoting, supporting and providing guidance to public and private Chilean initiatives to be developed in the State of California. Susanne Stirling of the CalChamber sits on this council.

Last week, the Governor called for further trade, tourism exchanges and other cooperation between California and Chile.

"I look forward to working with President Piñera to further strengthen our partnership," Schwarzenegger told an audience at a luncheon at the University of California, Los Angeles.

In June 2008, President Bachelet signed an MOU with Governor Schwarzenegger, marking the start of a program called “Chile-California Plan: A Strategic Association for the 21st Century.” The association is based on the joint commitment of Chile and California to develop business opportunities, expand research and teaching in education, and develop projects in different areas that are strategic for both territories.

Three top areas have been determined to be key ones for initial promotion and coordination: human capital, research and development, and trade and business.

It is anticipated that the plan will generate opportunities for developing innovative international exchange models and public-private networks in government, business and academic fields.

U.S.-Chile Free Trade Agreement

Since the U.S.-Chile Free Trade Agreement (FTA) 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 FTA, 85 percent of industrial products are traded without duties together with 75 percent of farm production. After just 10 years, all trade in non-agricultural goods will take place without tariffs or quotas; for agriculture, the phase-out will take 12 years.

Newly appointed U.S. Ambassador to Chile Alejandro D. Wolff with Susanne Stirling, CalChamber vice president of international affairs.

Two-way trade in goods between the United States and Chile decreased to $15.3 billion in 2009. According to the Office of the U.S. Trade Representative, exports to Chile from the United States have risen by more than 90 percent since implementation of the FTA. Exports to Chile of petroleum, machinery and fertilizer from the United States have increased markedly since 2003.

Chile is the United States' 24th largest export partner. 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 U.S. firms export approximately 5,000 products to Chile. More than 2,000 Chilean firms exported as many different products to the United States.

Background

Chile is roughly equal in size to California and home to 16 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 gross domestic product (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 around the world.

Chile is California's 33rd largest export partner. In 2009, California exported more than $1.1 billion 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 further information, please visit www.calchamber.com/Chile.

Staff Contact: Susanne Stirling