THE PACIFIC ALLIANCE AND THE TPP: OPPORTUNITIES IT REPRESENTS FOR THE ECONOMIC RELATIONSHIPS BETWEEN CHILE AND JAPAN Mr. Pedro Reus International Manager Sociedad de Fomento Fabril
TABLE OF CONTENTS I. INTRODUCTION II. III. IV. CHILE JAPAN TRADING PRODUCTIVE CHAININGS PROJECTIONS
I. INTRODUCTION
CHILE IN THE WORLD: TODAY 23 TRADE AGREEMENTS WITH 61 COUNTRIES 63% of the global population 94% of the Chilean exports 85% GDP NMF Imports Duty Effective Exports Openin grate (*) 6% 0,9% 0,3% 67% (*) (Exports + Imports)/PIB Source: Studies Department, DIRECON, based on data from the Chilean Central Bank, IMF, National Customs Service and Departament Access to Markets, DIRECON.
TO SUM UP: Chile has entered into 23 Trade Agreements Our exporters have preferential access to 63 countries (80% of the global GDP and over 50% of the world population) These markets receive 90% of our exports Nevertheless, our commercial opening has still not achieved the diversification of our export matrix. The amount and kindof exported products and services grows slowly and the natural resources are predominant in our export base.
THIS IS HOW WE HAVE PROGRESSED 90.000 180.000 Exports, Im mports (US$ millio on) 80.000 70.000 60.000 50.000 40.000 160.000 140.000 120.000 100.000 80.000 Comme ercial Exchange (US$ million) 30.000000 60.000000 20.000 40.000 10.000 20.000-2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 - Exports Imports Commercial Exchange Source: Studies Department, DIRECON, based on data from the Chilean Central Bank.
DESTINATION OF OUR EXPORTS Name Fob Mill. US$ Name Fob Mill. US$ 1 CHINA 19.108,89 11 SPAIN 1.517,82 2 USA 9.680,14 12 CANADA 1.377,30 3 JAPAN 7.548,31 13 MEXICO 1.365,62 4 BRAZIL 4.533,53 14 BELGIUM 1.341,13 5REPUBLIC OF KOREA 4.277,91 15 ARGENTINA 1.161,17 6 THE NETHERLANDS 2.446,13 16 FRANCE 1.100,65100 7 INDIA 2.182,66 17 SWITZERLAND 1.063,96 8 PERU 1.669,67 67 18 GERMANY 1.017,97 9 ITALY 1.654,15 19 COLOMBIA 999,63 10 TAIWAN (FORMOSA) 1.634,91 20 AUSTRALIA 878,04
ORIGIN OF OUR IMPORTS 1 USA 14.881,72 11 COLOMBIA 1.714,02 2 CHINA 13.823,01 12 SPAIN 1.687,27 3 BRAZIL 5.095,85 13 CANADA 1.523,73 4 ARGENTINA 4.138,33 14 UNITED KINGDOM 1.457,06 5 GERMANY 3.151,23 15 ITALY 1.259,26 6 REPUBLIC OF KOREA 2.569,78 16 FRANCE 1.172,43172 7 ECUADOR 2.514,84 17 TRINIDAD & TOBAGO 1.024,61 8 MEXICO 2.381,43 18 THAILAND 729,24 9 JAPAN 1.885,70 19 INDIA 692,63 10 PERU 1.722,73 20 OTHERS 679,34
SIGNIFICANT POSITION IN CHILE S FOREIGN TRADE CHILEAN EXPORTS PER DESTINATION MARKET (MM US$, 2000 AND 2013) 19.090 2% 22% 26% 31% 966 4.501 11.195 3.219 9.731 14% 3% 17% 18% 7.577 48% 2.539 1.672 6.161 795 4.207 2000 2013 2.245 1.425 123 241 CHILEAN IMPORTS PER ORIGIN MARKETS (MM US$, 2000 AND 2013) CHINA EU USA JAPAN MERCOSURREP. KOREA INDIA CANADA 16.061 15.632 13.002 2000 9.820 2013 3.339 1.000 2.880 4.338 2.767 2.538 2.515 2.478 535 616 255 710 1.757 1.721 1.543 266 206 512 USA EU REP. KOREA ECUADOR PERU CANADA Source: Studies Department, DIRECON, based on data from the Chilean Central Bank.
LATIN AMERICA: MAIN DESTINATION OF CHILEAN INVESTMENTS (MM US$, 2012) TOTAL INVESTMENT OF CHILE ABROAD US$ 72,468 MILLION TOTAL FOREIGN INVESTMENT IN CHILE US$ 182,719 MILLION MOST IMPORTANT DESTINATION OF CHILEAN CAPITAL Rest of the world 10% INVESTMENT OF CHILE IN THE COUNTRY INVESTMENT OF THE COUNTRY IN CHILE US$ 65.289 millones Latin America 90% Fuente: Departamento de Estudios, DIRECON, sobre la base de datos del Banco Central de Chile y Departamento de Inversiones en el Exterior, DIRECON.
II. CHILE JAPAN TRADING
CHILE JAPAN TRADING (AMOUNTS IN MILLION US$) Fuente: LegalPublishing Year Exports Imports Trade Balance Commercial Exchange 2002 1.927,90 534,46 1.393,45 2.462,36 2003 2.237,21 634,46 1.602,75 2.871,67 2004 3.696,58 797,12 2.899,46 4.493,70 2005 4.535,78 1.016,98 3.518,79 5.552,76 2006 6.038,10 1.146,57 4.891,53 7.184,66 2007 709167 7.091,67 1.586,02 550565 5.505,65 8.677,69 69 2008 7.230,91 2.660,18 4.570,74 9.891,09 2009 4.481,04 1.346,42 3.134,63 5.827,46 2010 7.111,08 2.905,24 4.205,84 10.016,32 2011 9.185,63 2.409,99 6.775,64 11.595,62 2012 8.442,21 2.090,11 6.352,10 10.532,32 2013 7.548,31 1.885,70 5.662,61 9.434,01
MAIN EXPORT PRODUCTS YEAR 2013 3 '03048200 TROUTS (SALMO TRUTTA, ONCORHYNCHUS MYKISS, ONCORHYNC 271,33 4 '44012211 WOOD OF EUCALIPTUS GLOBULUS 263,98 5 '26131010 MOLYBDENUM CONCENTRATESS 256,57 6 '02032930 BONELESS FROZEN PORK MEAT 157,21 7 '74031100 COPPER CATHODES 126,43 8 '26011210 IRON ORE «PELLETS» 101,39 9 '03031420 TROUTS HEADED AND GUTTED («HG») 81,22 10 '03048120 ATLANTIC SALMONS AND DANUBE SALMONS 70,36 11 '03082911 FROZEN SEA URCHIN TONGUES 56,50 12 '44071012 SAWED WOOD 54,23 13 '47032100 CHEMICAL PASTA OF CONIFEROUS 52,47 14 '44012212 WOOD OF EUCALYPTUS NITENS 49,27 15 '03054330 TROUT FILETS 40,91 16 '26161000 SILVER MINERALS AND ITS CONCENTRATES 35,19 17 '26011110 FINE IRON ORE 33,72 18 '22042161 CABERNET SAUVIGNON 32,39 19 '28369100 LYTHIUM CARBONATES 27,40 20 '47032910 CHEMICAL PASTA OF EUCALYPTUS 26,26 TOTAL MAIN EXPORTS (1) TOTAL EXPORTS (2) (1) / (2) 6.829,41 7.548,31 90% Fuente: LegalPublishing
MAIN IMPORT PRODUCTS 2013 Producto Descripción Cif Mill. US$ 1 '87032391 TOURISM VEHICLES 473,49 2 '40119400 TYRES FOR CONSTRUCTION OR MAINTENANCE VEHICLES OR MACHINERY 172,33 3 '87032291 TOURISM VEHICLES 117,91 4 '27101910 GASOLINE FOR AIRPLANES 73,68 5 '28070000 SULPHURIC ACID; OLEUM. 67,59 6 '84295210 EXCAVATORS 60,53 7 '87032491 TOURISM VEHICLES 56,26 8 '87042271 CHASSIS FOR ROAD TRUCKS 50,41 9 '84295110 FRONT LOADERS 33,74 10 '72083900 STEEL PLATES WITH THICKNESS OF LESS THAN 3 MM 26,64 11 '40112000 TYRES FOR BUSES OR TRUCKS 23,55 12 '89012019 TANKER SHIPS 20,75 13 '89019012 BULK CARRIERS 19,50 14 '87041090 MOTOR VEHICLES FOR THE TRANSPORT OF GOODS 18,47 15 '72085100 STEEL PLATES WITH THICKNESS OVER 10 MM 17,30 16 '84439990 PARTS OF PRINTING MACHINES 14,85 17 '87042230 VEHICLES FOR USEFUL LOADS OF OVER 2.000KILOS 14,72 18 '87021091 VEHICLES WITH ENGINE CAPACITY OVER 2,500 CM3 14,42 19 '84195000 HEAT EXCHANGERS 14,00 20 '72254000 OTHER STEEL PLATES 13,01 TOTAL MAIN IMPORTS (1) 1.303,16 TOTAL IMPORTS (2) (1) / (2) 1.885,70 69% Fuente: LegalPublishing
III. Productive Chainings How do they work?
STAGE N 2 Theproductive process ismade in Chile, to fulfill with the Rule Of Origin and make use of the duty benefit in the destinationmarket
STAGE N 3: Export of final good (that complies with Chilean origin) to the countries of interest
SOME SUCCESSFUL CASES
RITRAMA COMPANY (ITALY) EXPORT OF PAPER ROLLS AND SELF-ADHESIVE FILM PAPER ROLLS AND SELF- ADHESIVE FILM Imported inputs: Paper Roll Vinyl Polychloride Film Adhesives Polyethylene and Polypropylene Films Paper in rolls ENTER TO CHILE WITH DUTY 0% Principal export markets Country Fob Mill. US$ 1 BRAZIL 11,66 2 ARGENTINA 779 7,79 3 MEXICO 6,94 4 COLOMBIA 3,18 5 VENEZUELA 2,43 COUNTRIES MERCOSUR México Colombia Venezuela Duty Others 16% 5% 10% 15% Duty Chile 0% 0% 0% 0%
SENSUS COMPANY (GERMANY) EXPORT OF METERS WATER MATERS HEADING 90.28 MAIN EXPORT MARKETS COUNTRIES MÉXICO ARGENTINA SLOVAK REPUBLIC COUNTRIES MÉXICO ARGENTINA SLOVAK REPUBLIC Duty Others 15% 18% 2,1% Duty Chile 0% 0% 0%
IV.PROJECTIONS
EXPECTATIONS Extension and entrenchment of Agreement (Excepted products or with quotas) Exceptions: Dairy products, plywood, py tangerines, oranges and apple juices Quotas: Veal, pork and chicken meat, tomato pasta Signing of Agreement to avoid double taxation. Chile Business platform for Japan, in order to Chile Business platform for Japan, in order to enter to the countries of the Pacific Alliance.
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