hanns - Chile
	General Culture Human Resources Economics Trade Politics

Trade and Investment Analysis

Role of Trade in Economy

• Highly dependent on trade
• Exports made up 29% of GDP in 2003

Main Imports

• Petroleum
• Wheat
• Capital Goods
• Motor Vehicles
• Spare Parts
• Raw Materials

Main Exports

• Copper
• Industrial Products
• Iron Ore
• Wood Pulp
• Seafood
• Fruits

Main Trading Partners

• United States
• Japan
• European Union
• Brazil
• Argentina
• Bolivia

Trade Restrictions and Tariffs

• High tariffs on wheat, wheat flour and sugar
• Chile reduced import tariffs down to 6% on all countries it does not have trade agreements with

Foreign Direct Investments and Financial Incentives

• Welcoming attitude
• Foreign Investment Law
• The Central Bank
• ‘encaje’

Ownership Restrictions

• Very liberal policies for foreign investors
• Same treatment as Chileans

Market Potential

• Strong investor appeal
• Financial incentives
• Easy access to local materials and labor
• One of the highest credit rating in Latin America
• Low inflation