hanns - Chile
	General Culture Human Resources Economics Trade Politics

Political and Legal Analysis

• Politics
• Stable democracy, form of government: republic
• President Michelle Bachelet
• Former dictator Augusto Pinochet – Topic to Avoid
• Good relations with Washington, D.C.
• Active UN member
• Generally good relations world-wide
• Past tensions with Argentina, now resolved
• Tensions remain with Bolivia over border dispute. No formal diplomatic ties. Topic to Avoid.
• Minimal political risk
• Legal System
• Civil Law – adherence to codified law as opposed to legal precedence
• Intellectual Property Rights – member of the World Intellectual Property Organization; not in current compliance
• Trademark infringement can be a problem
• Register trademarks as soon as Chile is under
• Economy and Trade
• Stable market economy – considered at top of Latin America
• Conservative fiscal policies
• FTA with United states in 2004
• Associate member of Mercosur

Mode of Entry

• Market Conditions
• Fast growing economy where opportunities abound.
• Peso is appreciating against the US dollar, making imports more attractive.
• The United States is Chile’s largest trade partner making up over 17% of its exports which themselves make up 34% of GDP.
• Chile is still a relatively small market where relationships are extremely important.
• Knowing the right people with the right connections imperative to success.
• Recommended mode of entry is an agent, distributor or wholesaler.