CHILE AND ITALY: COOPERATION AND OPPORTUNITIES
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1 CHILE AND ITALY: COOPERATION AND OPPORTUNITIES CARLO CALENDA Deputy Minister of Economic Development Santiago October
2 Chile and Italy: a strong relationship on a growing path with still room for improvement Chile and Italy: trade flows 2015 prices (Mln USD) Italy to World x2.8 x6.1 1,059 Italy to Chile 173 Chile to Italy 400 1,477 x3.7 Chile to World x Source: Prometeia 2
3 Italy is still underrepresented in Chilean economy Italian market share on Chilean and world imports (2014, %) Source: Prometeia ITL share in world trade Mechanics & engineering Furniture Construction materials Fashion Household appliances Metal products Pharmaceutical Food & beverages Other interm. products publishing basic metals Train, aircrafts & ships Electrical machinery Motor vehicles ITL share in Chile Italian export to Chile by industry (2014, mln USD) Italian ranking as supplier in Chile
4 Even in mechanics & engineering we can do much more, given the complementarities between our industrial specializations Specialization of main Chilean industries* Why Italy can help Basic metals Food & beverages Agriculture Mining Other interm. products Metal products Train, aircrafts and ships Mechanics & engineering Consumer chem. products Construction materials Publishing Pharmaceutical Household appliances Other consumer products Others Specialization frontier 1 st world exporter of machinery for basic metals (18.9% of ms), 2 nd EU exporter in basic metals 1 st world exporter of machinery for food processing (17% of ms), 3 rd EU exporter of food 3 rd world exporter of machinery for agriculture (9% of ms) 3 rd EU exporter of machinery for mining, quarrying and construction (4% of ms) 2 nd EU exporter of intermediate inputs (4% of ms) 2 nd world exporter of mach. for paper (15% of ms) * Balassa index 2014: country market share in a specific industry / average market share in international trade Note: all Italian market shares (ms) refer to worldwide ; Source: Prometeia 4
5 Chilean industrial priorities and Italian trade potential Chilean industrial priorities Energy and renewable resources Mining industry (Upgrading mining capital stock to improve productivity) Infrastructure (aeronautics and aerospace) Health services Industrial diversification (with particular attention to SME) Italian export potential* to Chile 2020 Forecast and potential, mln USD Italian Export Actual 2015 Est Potential mln USD at 2020 (Estimate + Potential 2020) * Italian performance aligned with best international competitor among OECD economies in the market (past 5 years) Source: Prometeia 5
6 A new free trade zone is on the move Ongoing trade negotiations and deals signed by both EU, US with Pacific Alliance/ Asia-Pacific countries and others Canada Countries involved in deals and talks: 61% of total World GDP 63% of total World Export EU Japan Mexico Central America Peru, Ecuador, Colombia USA Morocco Ghana, Kenya, Mozambique (EPA with EU) Emirates Bahrain Oman South Korea Vietnam Malaysia Singapore Chile Source: elaboration by MiSE on WTO data 6
7 Chile-Italy next steps: action plan Exhibitions on relevant Italian and Chilean/ LatAm trade fairs G2G and B2B cooperation Partnership with large retailers to promote Made in Italy Infrastructures and construction Collective attendance of Italian companies to CONEXPO Latin America 2015 (Construction Technologies, Santiago Oct. 2015) Food and beverage, agroindustry, packaging Incoming of Chilean operators to the main Italian exhibitions: Plast, Ipack, Cibus, Macfrut in collaboration with Italian industry associations Health services Communication of the 5 year Chilean Health Devpt. Plan among Italian companies Italian health industry mission to Chile (2 nd half 2016) Launch cooperation in remote medicine Infrastructure and construction Follow up of B2B meetings at Chilean pavilion at Expo Milan (follow up mission 2 nd half 2016) Fashion Italian fashion industry mission to Chile (2 nd half 2016) Retail and department stores Consumer goods Project with Falabella: consumer test within Chilean fashion market for Made in Italy brands. Ongoing Falabella buyers mission to Italy (eg. furniture, fashion) Follow up mission 2 nd half 2016 (Health, Infrastructure, Energy, Consumer goods, Mechanics) 7
8 Thank you 8
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