U.S. Commercial Service Chile Chile Market Briefing: Business Overview and Best Prospects

Transcription

1 U.S. Commercial Service Chile Chile Market Briefing: Business Overview and Best Prospects Ellen Lenny-Pessagno Senior Commercial Officer U.S. Embassy Santiago

2 Source: Central Bank, Chile Sustained Economic Growth

3 Chile: Leader in Free Trade FTAs: Canada 1997 Mexico 1998 Central America 1999 European Union 2003 South Korea 2004 United States 2004 Trans-Pac. Partnership 2005 China 2006 Japan 2007 Colombia 2009 Australia 2009 Peru 2009 CEAs: Bolivia 1993 Venezuela 1994 Ecuador 1995 Mercosur 1996 India 2006 TPP = New Zealand, Singapore, Brunei, U.S., Chile, Australia, Peru, Vietnam, Malaysia

4 Economic Indicators and Facts Overall GDP 11: $243.1 billion; GDP Growth: 5.3% 2011 Per Capita GDP: approx. $15,300 Unemployment 2011: 7.2% ; 2010: 8.3% Import growth: 30% (2010 over 2009) Inflation 2011: 4.4% Newest Member of OECD (best projected growth for 2011) Mobile Phone Penetration: + 100%

5 Business - Why Chile? Free Trade Agreements 58+ Steady, positive growth Prudent fiscal policies Stable democratic government Solid business practices Rule of law Low corruption

6 U.S. Companies Invest in Chile Wal-Mart placed a big bet on Chile in late 2008 The major shareholder in D&S, one of the country s largest retail chains AES Corporation owns AES Gener Largest thermal generator and second largest generator of electricity in Chile Constructing 4 new generation facilities in Chile Freeport-McMoRan Copper & Gold 51% interest in Chile s El Abra mine 80% interest in several other mining operations around Candelaria Investments like these and others tend to inspire even more confidence in the Chilean economy

7 Our Free Trade Agreement Effective January % + of bilateral trade in goods duty-free 95% + of U.S. farm goods duty-free Stronger protection of intellectual property rights (IPR) Open and fair government procurement ( Commitments on labor rights and environmental protection Phases out all tariffs within 12 years (by 2016) U.S. market share was up to around 20% in 2010; under 15% in 2003 Visit our U.S. Exporters Guide to the US Chile FTA at

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

9 Source: TradeStats Express Main U.S. Exports to Chile NAICS US$ billions FAS Total Exports (billions): Petroleum & coal products Machinery, except electrical Computer & electronic products Chemicals Transportation equipment

10 Best Prospects for U.S. Exports Agricultural Machinery & Equipment Total Imports (USD millions): 645 Imports from the U.S. (USD millions): 103 Best subsectors include: Irrigation equipment Precision agriculture equipment Fresh fruit harvesting equipment Due to high energy and labor costs, agriculture production requires highly effective processes, mechanized harvesting, precision irrigation, as well as environmentally friendly.

11 Best Prospects for U.S. Exports Construction Machinery and Equipment Total Imports (USD millions): 935 Imports from the U.S. (USD millions): 374 The U.S. is the single largest supplier of machinery for the Chilean construction industry with 36.8% of the market, followed by Germany with 15.9% market share growth of 9% and 2012 growth expected to be 11%, making it one of the fastest growing sectors within Chile s economy Industry subsectors include large mining projects, infrastructure, private and public housing. The Ministry of Public Works has opened a prequalification process to design and construct an emblematic project: Chacao Bridge, which will connect continental Chile with the Chiloe Island. Companies can apply until October 30, 2012.

12 Best Prospects for U.S. Exports Energy / Electric Power Equipment Total Imports (USD millions): 1,200 Imports from the U.S. (USD millions): 180 Energy demand growing: Current installed capacity is 17,000 Mw. and 8,000 Mw needed in the next decade. Generation, transmission and distribution managed by private companies both foreign and Chilean 55% of the energy matrix derived from fossil fuels; 42% hydro; 3% renewables opportunities in all areas conventional and renewable.

13 Best Prospects for U.S. Exports Food Processing and Packaging Total Imports (USD millions): 78 Imports from the U.S. (USD millions): 13 Chile is 15th largest world food supplier. Will be among top ten countries in 2015 with USD 16 billion in annual exports. Main production and exports include fish and seafood (catch/aquaculture), wine, fresh fruit, dairy and meat products. Chile s Mediterranean climate and favorable geography allows for a wide variety production. The country is free of most phyto-sanitary diseases and pests due to strict and enforced regulations.

14 Best Prospects for U.S. Exports Healthcare Public sector = 26,300 beds, private sector = 15,000 beds. 75% of the population is under the public healthcare insurance system. Pharmaceuticals, mandatory registration at the Institute of Public Health. Medical eq. and devices do not need registration except for gloves, needles and syringes. In demand: ventilators, infusion pumps, aspiration pumps, central monitors, trauma equipment, surgical tables, ECG monitors, hospital beds.

15 Best Prospects for U.S. Exports Mining Equipment Total imports: USD 4.2 billion Imports from the U.S.: USD 1.8 billion Chile produces 35% of copper sold in the world USD 100 billion in new investment over next 10 years Best Prospects: Mining equipment that requires regular replacement (i.e. Grinders, Off-road trucks ( ), underground mining technology services, engineering services.

16 Best Prospects for U.S. Exports Safety and Security 14% growth in 2012 Market potential: security equipment for residential, commercial, industrial compounds, firefighting equipment and tools, and safety devices for the mining, industrial/chemical industries. In demand: access control, parking systems, fire detectors, sprinkler systems, extrication equipment, firefighting suits, alarms and monitoring, CCTV, outdoor perimeter protection, locks, safes, sensors, and general safety gear.

17 Telecommunications Best Prospects for U.S. Exports Chile's telecom sector is completely privatized and grew an average of 20 percent annually over the last decade. Future growth estimated at 15% annual. The wireless communications market is the fastest growing subsector. Cellular penetration reached 129 percent by the end of The market demand is oriented to new businesses with higher profits and faster growth, such as broadband Internet, corporate data communications and wireless applications. U.S. products are highly regarded for their quality, however they face strong competition from other countries. Total imports in 2011 reached USD 3.9 billion and U.S. imports totaled USD 471 million in the same period. Chile s main goal has been to establish public policies to enhance growth in the telecommunications sector, bridge the digital divide, and to find solutions to implement national communications network to face national emergencies and disasters

18 Water Resources Equipment Best Prospects for U.S. Exports Chile faces a water shortage, especially in the northern region, due to lack of rainfall. Huge expansion in the mining sector, growth in the agricultural sector and increase of population in the northern regions, increase the demand of water. Between 2012 and 2014, there have been investments announced that will exceed US$ 20 billion. Best prospects include design and construction of desalinization plants and of water and wastewater treatment plants; preventive maintenance techniques in water treatment plants, such as vibration, laser alignment, oil dialysis and others; reutilization of wastewater for agricultural irrigation.

19 Major Trade Events in Chile EXPOMIN Santiago April ,200 exhibitors from 36 countries EXPONAVAL Valparaíso December 4-7, 2012 EXPO HOSPITAL Santiago June 2013 IFT Energy Santiago April 2013 EXPONOR Antofagasta June ,000 exhibitors from 30 countries

20 Thank you! U.S. Embassy / Department of Commerce Santiago, Chile Ellen.Lenny-Pessagno@trade.gov Tel: (56-2)