(Last updated: 12 Mar 2011)

Current business situation

The Department of Foreign Affairs and Trade (DFAT) provides advice for business travellers and tourists going to Chile. This is regularly updated, and should be checked before planning travel.

Country facts

(Source: Department of Foreign Affairs and Trade - Country economic fact sheet)

Economic climate

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.

For the latest key economic indicators and statistics, please see the Department of Foreign Affairs and Trade country economic fact sheet.

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)

Trade relations and statistics

The Australia-Chile Free Trade Agreement (ACI-FTA) came into effect on 6 March 2009. The Agreement provides Australian businesses with significantly improved market access by eliminating immediately 92 per cent of tariff lines on 97 per cent of Australian goods currently traded; includes exports of coal, meat, wine and key dairy products. Tariffs on the remaining Australian export goods will be eliminated by 2015.

Reflecting the government’s focus on helping services suppliers, the FTA also includes commitments by Chile to maintain an open and non-discriminatory market for Australian services; including in important sectors for Australia such as education, professional services, mining, engineering, management consulting, and financial services.

In addition, Chile has a number of Free Trade Agreements (FTA) with various other 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.

Please see the Department of Foreign Affairs and Trade country economic fact sheet for key trade statistics.