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Country facts
| Capital city: |
Santiago |
| Surface area: |
757,000 sq km |
| Population: |
16.4 million |
| Official language(s): |
Spanish |
| Head of State & Head of Government: |
H.E. President Ms Michelle Bachelet Jeria |
| Australian exports to Chile: |
A$226 million |
| Australian imports from Chile: |
A$203 million |
| Chile'sprincipal export destinations: |
USA, Japan, China |
| Chile's principal import sources: |
USA, Argentina, Brazil | (Source: Department of Foreign Affairs and Trade - Country economic fact sheet) |
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Economic climate
Key economic indicators and statistics for 2007:
- GDP – US$160.8 billion
- GDP per capita – US$9,698
- Real GDP growth – 5.9 per cent
- Inflation – 3.9 per cent
There is wide consensus across the political spectrum in favour of economic liberalisation. Reform, including privatisation, trade and investment liberalisation and deregulation, has been maintained as government priorities.
Economic liberalisation has led to increased competitiveness and substantial growth in Chile’s traditional export sectors, including mining and fishing, fruit and vegetables, aquaculture, forestry, wine and services. The growth of these export sectors has been the engine for Chile’s strong economic growth
(Source: Department of Foreign Affairs and Trade - Country economic fact sheet) |
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Political climate
Under the current constitution, the President is head of state and the congress is bicameral. A constitutional amendment in 2005 reduced the Presidential term from six to four years. The constitution also prohibits the President from serving a second consecutive term. The Chamber of Deputies has 120 members while the Senate is made up of 38 elected members.
(Source: Department of Foreign Affairs and Trade - Country brief) |
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Trade relations and statistics
Chile has a number of Free Trade Agreements (FTA) with various countries. The most significant for Australian exporters of mining equipment is the FTA with Canada because imports from Canada attract no import duty.
Chile is an associate member of Mercosur, where Brazil, Argentina, Paraguay and Uruguay are also members. Members of Mercosur pay no duties on virtually all items with the exception of specifically negotiated items, such as cars, shoes, sugar cane, poultry and pig meat.
Some other points about Chilean trading partners:
- Chile also has other economic agreements with Venezuela, Peru, Ecuador and Colombia.
- Chile is in preliminary negotiations to join NAFTA (USA, Canada and Mexico Free Trade Agreement), and if successful, will have a positive effect on trade for Chile.
- Chile has FTAs with the EU, USA and South Korea.
After Brazil, Chile is Australia’s second largest merchandise export market in South America, with some 120 Australian companies actively trading with Chile. However, in commercial terms, Chile’s importance to Australia derives from our significant investment links. Over 50 Australian companies have registered offices over A$2 billion in direct investment in Chile, including activities by AGL, AMP, BHP, Hoyts and Orica.
Major Australian exports to Chile (2006-07):
- Coal – A$125 million
- Civil engineering equipment – A$17 million
- Specialised machinery – A$9 million
- Optical instruments – A$6 million
Major Australian imports from Chile (2006-07):
- Non-ferrous base metal waste – A$43 million
- Pulp and waste paper – A$31 million
- Pig iron – A$21 million
- Wood, simply worked – A$14 million
(Source: Department of Foreign Affairs and Trade - Country economic fact sheet) |
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