___________________________________________________________________________
2018/SOM3/SYM/010
Chile’s Trade Policy
Submitted by: Chile
Symposium on How Free Trade Agreements and Regional Trade
Agreements Can Contribute Towards Economic Growth
Port Moresby, Papua New Guinea18 August 2018
CHILE’S TRADE POLICY
MARCELA OTERO
Port Moresby, August 18, 2018
Excecutive Secretariat APEC Chile 2019
General Directorateof International Economic Relations
Bilateral Economic Affairs
Multilateral Economic Affairs
ExportPromotion Bureau
General Directorate of International Economic Relations
Trade Information Underdepartment, DIRECON-ProChile.
TARIFF AND RULES OF
ORIGIN
MARKET ACCESS INTELLECTUAL
PROPERTY
SERVICES AND INVESTMENT
TRADE
REMEDIES
PHITOSANITARY AND
SANITARY MEASURESTECHNICAL BARRIERS TO
TRADE
ENVIRONMENT
GOVERNMENT
PROCUREMENTS
E-COMMERCETRADE
FACILITATION TEMPORARY ENTRY FOR
PERSONS
General Directorate of International Economic Relations
HOW DO WE NEGOTIATE?
Trade Information Underdepartment, DIRECON-ProChile.
GENDER AND
TRADE
LABOR
• Increased participation in world exports
• Increased production and employment
• Higher share of foreign trade in GDP
• Higher investments in countries with reciprocal agreements
• Improving the country's image
• Improving risk indicators, easy of doing business, competitiveness
• Increased supply of services
• Development of economies of scale
• Increased supply of international intermediate goods
• Preferential Market Access
• Creating dispute resolution mechanisms
• Clear rules
CHILE’S TRADE POLICY
BENEFITS OF TRADE LIBERALIZATION
Trade Information Underdepartment, DIRECON-ProChile.
CHILE’S TRADE POLICY
Objectives
Trade Information Underdepartment, DIRECON-ProChile.
To achieve international integration of Chile, mixing theexport development with the promotion and protection ofinvestments.
Promote competitiveness, within a context of stable rules,fair competition, and contribute to reduce socialinequalities.
To engage Chilean production in Global Value Chains, in amore sophisticated manner not only as a producer ofnatural resources.
To increase Chile’s export diversification.
CHILE’S TRADE POLICY
Trade Information Underdepartment, DIRECON-ProChile.
Through the last three decades Chile's economic growth model has been based on exportpromotion and FDI attraction and has followed four strategies:
U N I L A T E R A L M U L T I L A T E R A LB I L A T E R A L M E G A R E G I O N A L A G R E E M E N T S
Unilateral tariffreduction
Export promotion
policies
International TradeAgreements
Participation in International
Organizations such as:
WTO, OECD, LAIA and APEC
Pacific Alliance and CP-TPP
CUSTOMS TARIFF REDUCTION IN TWO STAGES (MFN):
First (1990-1994): Reduction from 15% to 11%;
Second (1994-2003): Reduction from 11% to current level of 6%.
In 2013, Chile unilaterally removes tariffs on all goods originating in least developed countries (LDCs).
This reduction is based on the analysis and commitments established in the WTO, in Hong Kong in
2005
Since 1990, there was a marked advance in the signing of agreements with the countries of LatinAmerica, thus complementing the unilateral opening of the external sector.
CHILE’S TRADE POLICYUNILATERAL
Trade Information Underdepartment, DIRECON-ProChile.
0%
5%
10%
15%
20%
25%
30%
35%
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
EXPORTS NON COPPER EXPORTS
2,9%(MFN 6%)
Effective IMPORTS TARIFFS**
0.85%(MFN 6%)
FTAMexico
UNILATERAL TARIFF REDUCTION MERCOSUR
AA EU
FTA KOREA
FTA USA
FTA P4
FTA CHINA
FTAJAPAN
32.6%(MFN 220%)
6.22%(MFN 10%)
15.5%(MFN 35%)
12.3%(MFN 20%)
9.5%(MFN 15%)
9.2%(MFN 11%)
FTAAUSTRALIA
FTA MALAYSIA
FTATHAILAND
FTAVIETNAM & HONG KONG
EFFECTIVE TARIFFS AND EXPORTS (US$ MILLION AND %)BILATERAL
Trade Information Underdepartment, DIRECON-ProChile.
With data from the Central Bank of Chile and the Customs Service of Chile.
C u s t o m sT a r i f f ( % )
E x p o r t sU S $ M i l l i o n s
ECONOMIES
6 4
WORLD GDP
8 6 %
WORLD POPULATION
6 3 %
JAPAN
AUSTRALIA
P4BRUNEI
NEW ZEALAND
SINGAPORE
CHINA
SOUTH KOREA
TAILANDIA VIETNAM
PACIFIC ALLIANCE
UNITED STATES
CANADA
MEXICO
CENTRAL
AMERICA
PANAMÁ
CUBA
COLOMBIA
ECUADOR
PERÚ
HONG KONG
MERCOSUR
VENEZUELA
BOLIVIA
EFTA
TURKEY
EUROPEAN UNION
INDIA
CHILE’S TRADE POLICY26 FREE TRADE AGREEMENTS IN FORCE
Trade Information Underdepartment, DIRECON-ProChile.
With figures from the IMF WEO APRIL 2018
CHILE’S TRADE POLICY
FTAS TIMELINE
MERCOSUR
BOLIVIA
VENEZUELA CANADA
MEXICO EUROPEAN UNION
UNITED STATES
SOUTH KOREA
EFTA
CHINA
P4
JAPAN
INDIA
CUBA
PANAMA
AUSTRALIA
COLOMBIA
PERU
ECUADOR
TURKEY
MALAYSIA
CENTRAL AMERICA
HONG KONG
VIETNAM
ACCESS CHILE
TO APEC
TRADE
PROTOCOL
PACIFIC
ALLIANCE
MARRAKECH
AGREEMENT,WTO
THAILAND
CHILE’S INSERTION
IN THE
INTERNATIONAL
ECONOMY
CP TPPINDONESIA
(SIGNING)
Trade Information Underdepartment, DIRECON-ProChile.
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
MERCOSUR
BOLIVIA
VENEZUELA
CANADA
MEXICO
EU
UNITED STATES
SOUTH KOREA
EFTA
CHINA
P4
JAPAN
INDIA
CUBA
PANAMA
AUSTRALIA
COLOMBIA
PERU
ECUADOR
TURKEY
MALAYSIA
CENTRAL AMERICA
HONG KONG
VIETNAM
THAILAND
TRADE PROTOCOL
PACIFIC
ALLIANCE
US$
Mill
ion
s
S i n c e 1 9 9 0 , C h i l e a n
e x p o r t s h a v e
g r o w n 9%p e r y e a r .
Trade Information Underdepartment, DIRECON-ProChile.
With data from the Central Bank of Chile.
CHILE’S TRADE POLICYEXPORTS AND TRADE AGREEMENTS
1% 4% 5% 5% 16%
17%
21%
20%
21%
21%
19%
45%
66%
65%
77%
91%
91%
92%
92%
93%
93%
93%
94%
93%
95%
95%
In 2017, 95% of our exports were to countries with FTA
CHILE’S TRADE POLICYEXPORTS AND TRADE AGREEMENTS
Trade Information Underdepartment, DIRECON-ProChile.
With data from the Central Bank of Chile.
ON GOING:
• Brazil (new FTA)• European Union (FTA modernisation)• South Korea (FTA modernisation)• Pacific Alliance (with Associated Members)
FUTURE:
• Eurasian Economic Union• Philippines• Morocco• Southern African Customs
Union (SACU)• Egypt• Dominican Republic• Central América (FTA
modernisation)
SIGNED BUT NOT IN FORCE:
• Indonesia (new FTA)• Argentina (new FTA)• Uruguay (new FTA)• China (FTA modernisation)• Canada (FTA modernisation)
CHILE’S TRADE POLICY
New trade negotiations
Trade Information Underdepartment, DIRECON-ProChile.
Fresh Grapes
Fresh Blueberries
Fresh Plums
Dried Apples
Mussels
Salmon Fillets
Iodine, Lithium
Copper Cathodes
Fresh Cheries
Walnuts in Shell
Lilliums Bulbs
Frozen Mackerel
Grinding balls for mining
Raisins
Shelled Walnuts
Agar-agar
Inuline
Bulk Wine
Frozen Raspberries
3rdLARGEST EXPORTER
2ndLARGEST EXPORTER
1stLARGEST EXPORTER
Trade Information Underdepartment, DIRECON-ProChile.
With figures from TradeMap.
CHILE’S TRADE POLICY
World's leading exporter
90% O f t o t a l e x p o r t s
b y v a l u e
364 C O M P A N I E S
7.803C O M P A N I E S
10%O f t o t a l e x p o r t s
b y v a l u e
364 companies were responsible for 90% of total exports by value in 2017.
2 0 1 7
8.163 Chilean companies exported goods and services in 2017.
but…
EXPORT CONCENTRATION
Trade Information Underdepartment, DIRECON-ProChile.
With figures from the Customs Service of Chile.
M o r e i n c l u s i v e a n d
p a r t i c i p a t i v e t r a d e p o l i c y
t o w a r d s c i t i z e n s h i p
Ta k e A d v a n t a g e
o f F TA b e n e f i t s
CHILE’S TRADE POLICY
CHALLENGES
Trade Information Underdepartment, DIRECON-ProChile.
Ensure that
benefits of international trade policy reach the entire population across the country:
1,6%of Chilean SMEs
are exporting
3% of export companies
are led by women
85%of Chilean exports of services originates in
just one region
Trade Information Underdepartment, DIRECON-ProChile.
With data from the Central Bank of Chile and the Customs Service of Chile.
CHILE’S TRADE POLICY
TRADE FOR ALL
@C r o s s - b o r d e rt r a d e b o t h i n
s e r v i c e a n d e c o m m e r c e
E n v i r o n m e n t al p r o t e c t i o n
a n d c o n s e r v a t i o n
L a b o rG e n d e re q u a l i t y
S c i e n c e , Te c h n o l o g y
a n d I n n o v a t i o n
E n e r g yS u s t a i n a b l e
d e v e l o p m e n t
C o r p o r a t es o c i a l
r e s p o n s a b i l i t y
CHILE’S TRADE POLICY
NEW ISSUES
1 9 9 5 2 0 1 01 9 9 4
Trade Information Underdepartment, DIRECON-ProChile.
ACTIVE PARTICIPATION IN MULTILATERAL ECONOMIC FORUMS
C h i l e w i l l h o s t t h e
A P E C i n 2 0 1 9
Trade Information Underdepartment, DIRECON-ProChile.
63
%
72
%
79
%
77
%
73
%
61
%
51
%
56
%
59
%
74
%
61
%
87
%
77
%
52
%
52
%
37%28%
21% 23% 27%39%
49% 44% 41%
26%39%
13%23%
48% 48%
APEC Otros destinos
REGIONS
APEC IS THE LARGEST EXPORT DESTINATION
in each of the 15 Chilean regions
Trade Information Underdepartment, DIRECON-ProChile.
With data from the Central Bank of Chile and the Customs Service of Chile.
Regional Economic IntegrationFTAAP: pathways
Trade on Goods and services
Investments
Intelectual Property
Connectivity
Structural Reform
Digital EconomyE-commerce
E-government
Digital democratization
Digital Infraestructure
Financial inclusion
Sustainable DevelopmentEnviroment, Labor, CSR
Energy
Oceans
Natural Disasters
Smart Cities
Inclusive GrowthWomen
SMEs
Youth
entrepreneurs
Local and Native Communities
Education
P E O P L E
APEC CHILE 2019- Sustainable, inclusive and comprehensive growth
Trade Information Underdepartment, DIRECON-ProChile.
D i g i ta l Ec o n o my a n d S e r v i c e s
Wo m e n a n d Ec o n o m i cG ro w t h
C o n n e c t i v i t y
APEC CHILE 2019 - PRIORITIES
Trade Information Underdepartment, DIRECON-ProChile.
THANKS
TEXTO
TITULO DETITULO TITULO DE TITULO Y TITULO TITULO
NOMBRE EXPOSITORCARGO CARGO CARGO • PROCHILE
WELCOME TO CHILE 2019
WE ARE WAITING FOR YOU