chile’s trade policymddb.apec.org/documents/2018/som/sym/18_som_sym_010.pdf2018/som3/sym/010...

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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?


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


BENEFITS OF TRADE LIBERALIZATION



Objectives


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.



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


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


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


With figures from the IMF WEO APRIL 2018


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)


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 .


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


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)


New trade negotiations


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


With figures from TradeMap.


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


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


CHALLENGES


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 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


NEW ISSUES

1 9 9 5 2 0 1 01 9 9 4


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


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



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


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


THANKS

TEXTO

TITULO DETITULO TITULO DE TITULO Y TITULO TITULO

NOMBRE EXPOSITORCARGO CARGO CARGO • PROCHILE

WELCOME TO CHILE 2019

WE ARE WAITING FOR YOU

chile’s trade policymddb.apec.org/documents/2018/som/sym/18_som_sym_010.pdf2018/som3/sym/010...

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