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U.S. Department of State
Chile Country Commercial Guide
Office of the Coordinator for Business Affairs
COUNTRY COMMERCIAL GUIDE
FISCAL YEAR 1996
CHILE
American Embassy Santiago
Avenida Andres Bello 2800; Santiago, Chile
Tel: (56-2) 232-2600 Fax: (56-2) 330-3710
This Country Commercial Guide (CCG) presents a comprehensive look at
Chile's commercial environment through economic, political and market
analyses.
The CCGs were established by recommendation of the Trade Promotion
Coordinating Committee (TPCC), a multi-agency task force, to consolidate
various reporting documents prepared for the U.S. business community.
Country Commercial Guides are prepared annualy at U.S. Embassies through
the combined efforts of several U.S. governement agencies.
CHAPTER I. EXECUTIVE SUMMARY
CHAPTER II. ECONOMIC TRENDS AND OUTLOOK
Major Trends and Outlook
Principal Growth Sectors
Government Role in the Economy
Balance of Payments Situation
Infrastructure Situation
CHAPTER III. POLITICAL ENVIRONMENT
Nature of Political Relationship with the U.S.
Major Political Issues Affecting Business Climate
Brief Synopsis of Political System
CHAPTER IV. MARKETING U.S. PRODUCTS AND SERVICES
Distribution and Sales Channels
Use of Agents and Distributors: Finding a Partner
Franchising
Direct Marketing
Joint Ventures/Licensing
Steps to Establish an Office
Selling Factors/Techniques
Advertising and Trade Promotion
Pricing Products
Sales Service/Customer Support
Selling to the Government
Protecting Your Product from IPR Infringement
Need for a Local Attorney
AmCham
CHAPTER V. LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENT
Best Prospect Listing
Best Prospects for Non-Agricultural Goods and Services
Best Prospects for Agricultural Products
Significant Investment Opportunities
CHAPTER VI. TRADE REGULATIONS AND STANDARDS
Trade Barriers (Tariffs/Non-Tariff Barriers/Import Taxes)
Customs Valuation
Import Licenses
Export Controls
Import/Export Documentation
Temporary Entry
Labeling, Marking Requirements
Prohibited Imports
Standards (E.G., ISO 9000 usage)
Free Trade Zone/Warehouses
Special Import Provisions
Membership in Free Trade Arrangements
CHAPTER VII. INVESTMENT CLIMATE
Openness to Foreign Investment (Investment Barriers)
Conversion and Transfer Policies
Expropriation and Compensation
Dispute Settlement
Political Violence
Performance Requirements/Incentives
Right to Private Ownership and Establishment
Protection of Property Rights
Regulatory System: Laws and Procedures
Bilateral Investment Agreements
OPIC and Other Investment Insurance Programs
Labor
Foreign Trade Zones/Free Ports
Capital Outflow Policy
Major Foreign Investors
CHAPTER VIII. TRADE AND PROJECT FINANCING
Brief Description of Banking System
Foreign Exchange Controls Affecting Trading
General Financing Availability
How to Finance Exports / Methods of Payment
Types of Available Export Financing and Insurance
Available Project Financing
List of Banks with Correspondent U.S. Banking Arrangements
CHAPTER IX: BUSINESS TRAVEL
Business Customs
Travel Advisory and Visas
Holidays
Business Infrastructure
CHAPTER X: APPENDICES
APPENDIX A: COUNTRY DATA
APPENDIX B: DOMESTIC ECONOMY
APPENDIX C: TRADE
APPENDIX D: INVESTMENT STATISTICS
APPENDIX E: U.S. AND COUNTRY CONTACTS
APPENDIX F: MARKET RESEARCH
APPENDIX G: TRADE EVENT SCHEDULE
CHAPTER I. EXECUTIVE SUMMARY
Chile is the region's most dynamic and promising market. Its strength
and attractiveness lies not in its size (as a country of some 13.5
million people, it is relatively small), but in the transparency of its
regulation, in the energy and professionalism of its entrepreneurs and
in the predictability of its decision-makers.
Twenty-two years of market-led reforms have resulted in eleven years of
uninterrupted economic growth, which has averaged 6 percent per year
over the last six years. An increasingly diversified economy and
strengthening ties with buyers and suppliers in Europe, Asia and the
Americas have given Chile a wide range of options for further growth and
continued prosperity. Prudent economic policy-making has secured
stability in spite of troubling situations elsewhere in Latin America.
The economic crisis in Mexico affected Chile much less than other Latin
American countries, and the effects were short-lived.
Chile enjoys both budget and balance of payments surpluses, and has
sufficient funding to finance growth. Its internal rate of savings is
above 25 percent, more like the Asian tigers than its Latin neighbors.
Foreign investment, made easy by Chilean regulations (except regarding
short-term investment and purely financial investment), is entering the
country, and unlike Mexico, the investment is long-term instead of
short-term. There has been some concern in official circles that too
much foreign investment is pushing up the value of the Chilean peso and
making Chilean exports less competitive. This has lead to measures to
restrict financial inflows.
The Chilean political system is responsible for a good part of this
success. In 1990, Chile emerged from 17 years of military government
with a broad overall consensus about the general parameters of economic
management. The political center appears to have gained at the expense
of the extreme left and right. Tension still exists in the area of the
relationship of the civil government with the military, but does not
threaten democratic rule.
This is an excellent time to explore the Chilean market. If anything,
circumstances for U.S. suppliers should improve. Negotiations to
achieve Chile's accession to the North American Free Trade Agreement
(NAFTA) are underway. If successful, this will stimulate more trade and
investment opportunities for U.S. companies.
Chile is a particularly promising market for high technology and
infrastructural-type products. These include electricity generation and
related products, pollution control equipment, telecommunications
equipment, computers and peripherals, mining industry equipment, medical
equipment, and port equipment. There are also excellent opportunities
in consumer products and services such as sporting goods and
franchising.
U.S. exporters to Chile should encounter few problems in financing
availability for its customers. Sufficient Chilean, U.S., and third-
country banks operate in Chile. Chilean banks enjoy all the trade
credit they need to conduct international transactions. OPIC and EXIM
are both active, and the World Bank and the Interamerican Development
Bank provide project financing to the extent that Chile needs and wants
it. Chile has the highest Moody's rating in Latin America, BAA-3.
Standard & Poors raised its rating of Chile to A- in July 1995. Chilean
reserves in June 1995 were near $15 billion, or over 13 months of import
coverage, more than sufficient for its needs.
While solid opportunities for U.S. products abound in Chile, this is not
to say that competition doesn't exist. The U.S. is Chile's largest
single supplier (about 23 percent of the import market), but European
and Asian competitors are strong in Chile. It is crucial to establish
an effective and efficient presence. Many foreign companies have
subsidiaries or branch offices in Chile, while others utilize
distributors or representatives. Although the 40 percent of Chile's
population resident in the Santiago metropolitan region is easily
reached, Chile's unusual geography makes it sometimes difficult to cover
other population centers, making knowledgeable and well-connected
Chilean representation important. The exporter has to make a decision
based on the factors of control, cost, and coverage when choosing the
proper route for entrance into the Chilean market.
Chile has one of the simplest and most transparent regulatory systems in
the region to deal with trade and business activities. Careful review
of applicable regulation and full compliance with its guidelines will
guarantee more successful and trouble-free operations in the Chilean
market. Chile does maintain import and export licensing requirements,
but they are more for statistical purposes rather than control. For all
except a few sensitive items, virtually anyone is free to import
anything.
It is not difficult for foreign businesspersons to operate in Chile.
Air connections are improving, and in-country travel arrangements are
adequate. Visa provisions are not onerous. This is important because
personal contact is essential to conducting business.
Country Commercial Guides are available on the National Trade Data Bank
(NTDB) on CD-Rom or through the internet. Please contact STAT-USA at 1-
800-STAT-USA for more information. To locate Country Commercial Guides
via the internet, please use the following world wide web address:
www.stat-usa.gov. Country Commercial Guides can also be ordered in hard
copy or on diskette from the National Technical Information (NTIS) at 1-
800-553-NTIS.
All amounts in this report are in U.S. dollars unless otherwise stated.
CHAPTER II. ECONOMIC TRENDS OUTLOOK
Major Trends and Outlook
Chile's economy has expanded for the last eleven years, averaging over 6
percent growth per year. This growth has been led by a boom in exports,
which are concentrated in primary and processed natural resources,
principally copper, fresh fruit, and forestry and fisheries products.
The export boom has been sparked in recent years by soaring investment,
both foreign and domestic. Both the product mix of and the markets for
Chile's exports are becoming increasingly diversified, with the
dependency upon copper declining and Latin America joining the U.S.,
Asia, and the European Union as important purchasers of Chilean
products.
Vigorous economic growth has led to strong job creation and a gradual
decline in unemployment (which was about 5 1/2 percent in early 1995).
Real wages have also risen, by around 35 percent in the last six years.
Helped by an appreciating peso, inflation has declined gradually since
1990, reaching 7.4 percent in mid-1995. The surge in foreign investment
has kept the balance of payments positive for the last several years,
and international reserves have risen accordingly. Chile's credit
rating is the best in Latin America. Since Chile first received an
investing-grade rating in 1992, Chilean firms have raised funds abroad -
- through borrowing, selling bonds, and stock issues -- to finance
investment. Despite the resulting increase in private indebtedness, the
government is paying down its debt, and total debt remains below half of
annual GDP.
Chile's economy grew by 4.2 percent in 1994. This slower-than-usual
rate was caused by the Central Bank's efforts to bring down inflation by
keeping interest rates high; the effects of low commodity prices in late
1993 and early 1994 also limited growth. In late 1994, with inflation
declining, the Central Bank lowered interest rates, copper prices rose
dramatically, and the economy began to grow at a faster pace. GDP
growth in 1995 is expected to reach 6 percent, and inflation -- helped
by a strengthening peso -- should end the year at or below 8 percent.
The decline in international investor confidence in Latin America after
the December 1994 Mexican devaluation had little effect on Chile beyond
brief stock price declines and a temporary halt in the issuance of
Chilean stock on Wall Street via American Depositary Receipts (ADRs).
Chile's high domestic savings rate (fostered in part by mandatory
retirement contributions administered by private and competitive pension
fund management firms) means that it does not depend on short-term
foreign capital to finance its investment. Because foreign investment
in Chile is mostly direct investment, it is not likely to flee the
country in response to temporary bad news. Chile's high rate of
investment means that production is likely to continue growing rapidly
over the next several years.
Chile's reliance on exports and interest in market diversification have
led it to seek opportunities to further open several current or
potential markets. Chile joined the Asia Pacific Economic Cooperation
(APEC) organization in 1994. It has signed bilateral trade-liberalizing
agreements with several Latin American nations, and is negotiating a
trade expansion agreement with the Mercosur nations.
Principal Growth Sectors
The principal growth sectors for 1995 and future years are likely to be
mining, telecommunications, manufacturing, forestry, and financial
services. The mining, telecommunications and forestry sectors have
benefitted from major investments by foreign, including U.S., companies.
Government Role in the Economy
Businesses in Chile are predominantly owned and controlled by private
interests. Prices, except those of regulated utilities, are set freely.
Although the military and democratic governments of the last twenty
years have privatized many state corporations, the state retains
holdings in several industries. The most important public corporation
is CODELCO, the world's largest copper company, which the government has
said it will not sell. In 1994 and 1995, the Frei administration sold
the government's remaining share in an airline and its electricity,
shipping, and radio holdings.
The public sector budget is approximately 25 percent of GDP. Important
sources of tax revenue are the 18 percent value-added tax, personal
income taxes, corporate taxes, and import tariffs. The top marginal
personal income tax rate is 45 percent on income above $75,000. The
government generally runs budget surpluses of less than 2 percent of
GDP.
Balance of Payments Situation
Chile's international reserves, over $15 billion as of mid-1995,
represent more than a year's worth of imports. For the last several
years, capital inflows have more than made up for any current account
deficits. The 1994 current account deficit was an easily sustainable
1.4 percent of GDP, and the trade surplus was $660 million. In 1995,
the trade surplus is expected to approach $2 billion, and the current
account should be close to balanced.
Infrastructure Situation
The country has a satisfactory transport system, which includes the
fourth largest rail network in Latin America (5,511 miles, or 8,870
kilometers). The railroads are mostly owned by the Ferrocarriles del
Estado, which belongs to the state. There are two railroads connecting
with Bolivia, one of which is privately owned, and two connecting with
Argentina. Emphasis is being placed on cargo transportation by rail,
which reached nearly 5.6 million tons in 1992.
The Chilean highway network has been targeted for increased investment
by the government. The Panamerican highway, the only major north-south
route, is in good condition, and there are adequate roads in many areas,
but many secondary highways are unpaved, and there are some bottlenecks,
particularly in urban areas. The government is examining road
concession possibilities to determine how to attract private investment
in highways.
Most international airlines operate from Santiago's airport, linking
Chile with cities in the United States and Europe. There are also a
number of good airports located throughout the country. The two largest
Chilean airlines, LAN Chile and Ladeco, are privately held, cover the
whole country and also link Chile with many foreign countries.
Well-equipped ports are located on the Pacific Ocean, the principal one
being Valparaiso, which is about 130 miles (210 kilometers) from
Santiago. Others are Arica, Iquique, Antofagasta, San Antonio,
Talcahuano, and Punta Arenas. Foreign and local shipping lines cover
the international traffic, whereas the coastal traffic is handled by
several local companies, one of which is state-owned.
Communications are excellent. Chile has one of the best networks in the
hemisphere. Cable, fax and telephone connections via satellite are
available, as is direct dialing to most parts of the world and to cities
in Chile. Privately owned telephone companies have substantially
increased the number of telephones. A wide network of cellular
telephones is also available. Chile also has an efficient internal and
international postal service.
The Santiago subway, built with French technical assistance, has been in
operation since 1976. It is very efficient and well-maintained and is
currently being expanded.
CHAPTER III: POLITICAL ENVIRONMENT
Nature of Political Relationship with the United States
Since the return to democratic rule in 1990, U.S.-Chilean relations have
flourished. The United States government has welcomed Chile's
successful effort to regain its place in the international arena after
years of political isolation, and views Chile's successful program of
sustained economic reform and its peaceful transition to democracy as
models for other countries. The U.S. and Chile work closely together on
many issues.
Major Political Issues Affecting the Business Climate
Chilean politics is marked by broad consensus among the major parties
about the importance of a democratic political system and a free-market
economic system. Key differences between the governing coalition and
the rightist opposition involve strategies for, and the role of
government in, addressing issues such as poverty eradication, health
care, infrastructure and education, as well as the degree to which the
political system should be reformed to eliminate power-sharing
arrangements created under the former military government which protect
the interests of the armed services and the political Right at the
expense of those of the elected majority.
Brief Synopsis of the Political System
President Eduardo Frei, a Christian Democrat leading a coalition of four
center-left parties, won an overwhelming victory in December 1993
elections and began his six-year term on March 11, 1994, when he
succeeded Patricio Aylwin (also a Christian Democrat). An engineer by
training, Frei was a successful businessman before entering politics in
the 1980's. Many of his closest advisors are U.S.-trained and share his
commitment to Chile's successful free market economic model.
Frei heads Chile's powerful executive branch and his center/left
coalition has a majority of the elected seats in both the lower and
upper houses of Congress (the Chamber of Deputies and the Senate).
Nonetheless, under constitutional provisions promulgated during the
period of military rule (1973-1990), the balance of power in the upper
house is held by the eight living "institutional" senators appointed
near the end of the Pinochet era. Thus, the government must negotiate
with the conservative opposition to pass any of its legislative program.
For much of this century, Chilean politics have been marked by a three-
way division between the political right, center and left, with each
holding roughly one-third of the vote. This division persists today
with the important modification that, since the transition to democracy,
the political center (including the center right and center left) has
gained strength at the expense of the extremes. As a result, Chilean
politics today revolve around two large political blocs: the
center/left governing coalition and the Rightist opposition which
includes relatively modern center-right forces. The former includes the
centrist Christian Democratic and Radical parties, and the moderate-
leftist Party for Democracy and the Socialist Party. The latter
includes the National Renewal Party, the Independent Democratic Union,
and the populist Center-Center Union. Chile also has several small
fringe-left parties, including a largely unreconstructed Communist
Party, which are not represented in the Executive Branch or the
Congress, but which have elected representatives in local governments.
Election Schedule
June 1996 Municipal elections throughout Chile
Dec 1997 Congressional elections (all Deputies and half the elected
Senators). In addition, barring constitutional reform to eliminate
appointed Senators, new "institutional" Senators will also be named.
Dec 1999 Presidential elections
Mar 2000 Presidential inauguration
June 2000 Municipal elections
Dec 2001 Congressional elections (all Deputies and half the elected
Senators)
CHAPTER IV: MARKETING U.S. PRODUCTS AND SERVICES
Distribution and Sales Channels
Establishing a local subsidiary or branch office gives the best
guarantee that the exporter will receive efficient service and
appropriate promotion of his/her products. Any corporation legally
constituted abroad may form, under its own name, an authorized branch
(Agencia) in Chile. This method of market penetration may involve a
considerable investment, but can be justified if sales are made in large
volume or when local service support and/or inventory are necessary.
Another practical method is to appoint an agent or representative with
good access to relevant markets and with technical structure. The
various geographic regions in Chile are far apart and their economies
depend on diverse natural resources. Larger representatives usually
have branch offices in different regions. Some large end-users, e.g.
mining and forestry enterprises, demand quick service and specialized
technical support.
In spite of the elongated Chilean territory, its population 13,500,000
is very centralized: 40 percent of the inhabitants live within 100
miles of the capital in the Metropolitan Region, which covers 5,927
square miles. Most of the manufacturing, trade, and service activities
are located in Santiago, the capital. It is common in Santiago that
importers and manufacturers dealing in mass distribution items
distribute directly to large wholesalers or retail stores.
Sales outlets are mainly the traditional store fronts, but large
department stores have penetrated the market. During the past decade,
several large department stores and supermarkets have been built. Well-
designed shopping malls have recently been a booming business, not only
in Santiago, but also in larger cities throughout Chile. These shopping
malls are anchored by one or two large department stores surrounded by
attractive specialty stores or boutiques. This is a suitable way to
display and market textile products, electronic appliances and devices,
sporting goods, cosmetics, office supplies, kitchen utensils, etc.
Although the Chilean government has had for the last 10 years a high
priority to decentralize the country, Santiago is the place for
establishing businesses. Santiago is near two major ports, Valparaiso
and San Antonio, as well as to the largest Chilean international
airport, Comodoro Arturo Merino Benitez.
Use of Agent/Distributor Service - Finding a Partner
Currently there are over 2,800 importers operating in Chile; some of
them also act as export agents. Most are small-to-medium size firms.
Several large firms handle different lines of products and are large
wholesalers. Almost all the firms have their main offices in Santiago
and branch offices throughout the country, including in the free-trade
zones. Other firms employ specialized travelling salespeople.
In general, foreign suppliers enter the Chilean market by appointing an
agent, distributor or wholesaler. This local representative, to be
effective, must be aggressive, knowledgeable about the product, and
well-connected with decision-makers at end user firms. The
representative will need to promote the products through newspapers,
specialized magazines, radio and TV commercials. Agent/representative
commissions normally range from 5 to 10 percent depending on the
product. (For contract requirements, see "Need for a Local Attorney" in
this Chapter.)
The U.S. firm should be thorough in selecting the agent or
representative. For this purpose, it should make full use of the
several services offered by the U.S. Department of Commerce or its local
Commercial Service District Offices. These services include the
Agent/Distributor Search (ADS), which helps identify interested agents
and distributors, the Customized Market Analysis (CMA) market reports
which can identify potential representatives and supplies a profile of
the product in the market. The Gold Key Service can assist exporters in
arranging appointment schedules and support services which maximize
their time and travel expenses.
Franchising
Since 1990, franchises have rapidly developed in Chile. Presently,
there are over 45-50 franchises operating in Chile with over 200
franchisees, who during 1994 totalled sales of $110 million, accounting
for over 10,000 direct employment positions.
Chile's good economic situation, open market attitude, credit access and
high cultural level provides an excellent opportunity for this type of
business. The steady growth of the Chilean economy has increased the
pace of daily life, creating a good market for fast-food and other
services.
Most franchises installed in Chile are focused on the fast-food sector,
including McDonald's, Au Bon Pain, Domino's Pizza, Arby's, Pizza Hut,
Kentucky Fried Chicken, Burger King and Baskin-Robbins. However, there
is a good and an unexplored market for franchising companies on the
fields of automotive services, cosmetics, repair and rental services,
cleaning (home and industrial), clothes, fitness centers, real estate
business, hotels/motels, supermarkets and others.
There are no special laws on franchises in Chile. The Asociacion de
Franchising de Chile (AFICH) was established in June 1995. Its main
purpose is to obtain approval by the Chilean congress of a franchise
law.
So far, franchise companies operating in Chile are subject to regular
trade laws. The withholding tax on royalties is 35 percent; value added
tax (VAT) is 18 percent; the import tariff is a flat 11 percent with
only few exceptions for a few luxury products. There are restrictions
that affect the operations of certain franchisors, e.g., phytosanitary
regulations that in effect ban the importation of uncooked chicken or
chicken parts.
Direct Marketing
Direct marketing is well-established in the services sector, mainly in
banking and financial institutions, seminar organizers,
telecommunication services, etc. Direct marketing or catalog sales are
not yet common in the market. The low interest shown by Chilean
consumers is mainly based on mistrust of warranty claims and promises of
after-sales services. The most usual way is to hire personnel for
telemarketing or mailing campaigns or to contract the services of a firm
specialized in this type of service. Data base listings are not easily
acquired and commercial firms are cautious in keeping its customers's
privacy. However, some firms such as DICOM and Publi Mail do sell data
base listings or offer complete telemarketing and mailing services.
Publi Mail can also provide customized sales prospects listings and up-
dating upon request.
Currently Chilean consumers prefer to window-shop, walk and browse in
shopping malls or shopping districts and personally choose the goods
rather than purchase through catalogs. Exchange of products in Chile is
a complicated matter for vendors who are not inclined to return the
money due to VAT complexity.
Joint Ventures/Licensing
Joint ventures and licensing arrangements require a legally established
local partner who can be responsible for Chilean legal and taxation
obligations. The various administrative, commercial, profit
distribution, and other issues involved in the association are
established in contracts drawn up between the partners in accordance
with Chilean law and tax regulations.
As Chile continues to establish itself in worldwide markets, its growing
and stable economy make more sectors attractive for joint ventures and
licensing. These mechanisms are especially interesting when there is a
local manufacturing or finishing capacity for products whose market
costs are affected by shipping expenses.
Joint ventures are also attractive because they allow U.S. manufacturers
to approach in a more effective way sectors such as consumer goods and
clothing. Other areas, especially where Chilean industry has increased
its technology and productivity, may be attractive. One typical example
of this advantageous competitive technique is the significant increase
in production and exports of denim wear under various brands. In
another example, Gucci transferred its entire leather handbag production
after observing the qualified labor, supervision and production cost
situation. Other foreign apparel, cosmetics, perfumes manufacturers are
also producing good quality, lower cost goods.
Steps to Establishing an Office
Incorporating in Chile is not expensive and the time required is short.
Chile has no minimum local participation requirement; inclusion of local
partners is only guided by commercial considerations. However, a
legally established corporation or partnership is absolutely necessary
to do any business in Chile except for exporting to the country.
The first step for a U.S. citizen, corporation or entity wishing to do
business in Chile on its own is to present a declaration of intent to
invest in Chile to a Chilean Consulate, stating the nature of the
business and the capital to be invested, simultaneously requesting a
Permanent Residence Visa. This confers an official residence status to
the company, without which it will be barred from conducting commercial
activities in Chile.
Within the framework of Chilean law, business entities can choose among
various corporate forms, entailing somewhat different legal, taxation
and other effects. Since the tax treatment is substantially similar for
the various forms of businesses, the choice of entity is often guided by
tax considerations of the home country.
Selling Factors/Techniques
The most important selling factor in Chile is price. Price-competitive
products from Asian countries such as Taiwan and Korea far outsell more
expensive European or North American products in the consumer product
categories such as consumer electronics, appliances and automobiles.
Where dependability becomes more influential, such as in advanced
electronics and construction machinery, the customer will often go for
more expensive North American or European products based on the decision
factors of quality and durability, technology, good customer support,
and a strong regional service structure where applicable. Price is the
fundamental factor, but these other factors all influence the purchase
decision, with the order of importance depending on the industry, the
customer and the application.
Many of the larger representatives have regional offices in addition to
their Santiago headquarters, or work with commissioned salesmen. It is
part of the national idiosyncrasy that more technical product categories
are generally sold by visiting salesmen rather than in showrooms or
retail outlets. Technical salesmen demonstrate products to clients who
prefer to be visited in their offices or are too far from sales points.
These salesmen are often backed up by more thoroughly trained technical
sales support personnel during client visits.
Payment for major purchases is generally on a net 30 days basis when
invoices are used. Over-the-counter purchases are done in cash, check
or credit card. Credit terms are one sales technique used by most
retailers. Major department stores and chains issue their own credit
cards.
Advertising and Trade Promotion
Television, radio, newspaper and magazine advertisement are used heavily
to reinforce in-store merchandising methods. Private agencies handle
the largest share of advertising. Most of these agencies belong to the
Asociacion Chilena de Agencias de Publicidad (Chilean Association of
Advertising Agencies), ACHAP, located at Guardia Vieja 181, Of. 302,
Tel: (56-2) 231-0935, Fax: (56-2) 251-2354.
Spending on non-radio advertising during the January-April 1994 period
totalled $210 million, an increase of 28.8 percent over the same period
in 1993. Of this, 56.9 percent went to television, 33.7 to newspapers,
4.9 percent for billboards (road signs, subway posters, etc.), and 4.5
percent to magazines. Radio publicity also absorbs significant funds.
Chile uses the NTSC system for TV broadcasting. Six TV channels
broadcast in Santiago; several of these also cover the principal cities
throughout the country. Television Nacional, the government-owned
network, covers 97 percent of Chile's territory, and has traditionally
waged a very close contest for the top audience rating with Channel 13
Television Universidad Catolica. Both hover around 14 points (each
point represents approximately 40,000 people) from Monday to Friday and
Sunday (other channels score 5 or lower). Channel 13 doubles TV
Nacional's rating on Saturdays. All channels must be financially self-
supporting. Cable television has been rapidly covering Santiago over
the past two years, and exposes subscribers to major stations from
several American and European countries, including CNN, TNT, HBO, CNBC,
Discovery, Fox, and ESPN from the U.S.
Of the 144 AM stations and 253 FM stations registered nationwide with
the Asociacion de Radiodifusoras de Chile (ARCHI, Chilean
Radiobroadcasters' Association), 19 AM and 27 FM stations are located in
the nation's capital. Other stations are also licensed to transmit, but
are run by universities or other not-for-profit organizations and are
not members of ARCHI. Major networks for commercial advertisement are
Portales, Mineria, Agricultura, Radio Chilena, and Cooperativa. Major
musical and commercial oriented FM stations are El Conquistador, Andres
Bello, Galaxia, and Futuro.
There are about 30 newspapers throughout the country. Six daily
newspapers in Santiago have a combined circulation of approximately
700,000. The main one is El Mercurio:
- EL MERCURIO S.A.P.
Santa Maria 5542, Las Condes; Santiago, Chile
Tel: (56-2) 228-7048
Fax: (56-2) 228-9262
El Mercurio has weekly inserts on agriculture and construction, and a
monthly insert on computers. It also puts out special inserts on
various topics, including vehicles, throughout the year.
Other important independent newspapers are Las Ultimas Noticias, La
Segunda, and La Tercera. La Nacion is a state-owned daily newspaper,
and La Epoca was founded by Christian Democratic activists. Estrategia
and El Diario are the two financial tabloids published on working days.
The most widely-read weekly magazines are Que Pasa, a newsweekly that
covers current events; Hoy, a newsweekly owned by a Christian Democratic
activist; and Cosas, a bi-weekly, socialite-type magazine which carries
interviews and photo coverage of national and international figures.
Monthly magazines such as The South Pacific Mail and America Economia
(the latter edited in Chile and sold throughout Latin America) reach a
more selective audience.
Pricing Products
Generally, an 11 percent tariff is levied on the CIF value of all
imported products. This and a Value Added Tax of 18 percent are paid by
the importer and not by the supplier. There are some exceptions:
government entities do not pay these fees, and some luxury goods have
higher tariffs. Imports from countries with which Chile has bilateral
trade agreements are covered by different, preferential tariff
schedules.
Pricing starts with a fairly straightforward formula based on CIF costs
plus these generally constant ship-to-warehouse expenses. Gross margins
for consumer goods are generally in the 30-50 percent range or more for
direct sales to consumers, or 20-30 percent each for the
importer/distributor and the retailer when a distribution chain is in
place. Final price for mass-distributed U.S. items should be
competitive with imports from Asia and countries like Brazil. Higher-
priced items must identify niche market segments to prosper. More
specialized products are sold by stocking representatives, or by
commissioned agents who generally earn 5-10 percent on their sales.
Sales Service/Customer Support
Customer service and support are fundamental to successfully penetrate
and retain market segments other than consumer products. The distance
and communications hurdles separating local buyers from foreign
suppliers are a perpetual worry, as many buyers have been left stranded
after buying a product with insufficient or no post-sale technical
support.
In addition to the fact that consumer rights are slowly becoming a real
issue, any product with an extended lifetime and a need for operator
training, for consumables and/or for technical service must have this
support provided by a stable local company with solid support and
backing from the overseas supplier. Bad reputations acquired by
disregarding customer needs are hard to shake.
Selling to the Government
Government entities usually do their own procurement. Chilean law calls
for public bids for large purchases, although procurement by negotiation
is permitted in certain cases.
Foreign and local bidders on government tenders must be registered with
the Chilean Direccion de Aprovisionamiento del Estado (Bureau of
Government Procurement Supplies), Amunategui 66, piso 4, Santiago,
Chile. They must also post a bank and/or guarantee bond, usually
equivalent to 10 percent of the total bid, to assure compliance with
specifications and delivery dates. Bidding is best done through a local
agent who is registered, well connected, and familiar with the bidding
procedures (see Appendix C for list of government agencies).
Protecting Your Product from IPR Infringement
Chile belongs to the World Intellectual Property Organization, and
patents, trademarks, industrial designs, models and copyrights are
protected in Chile by the provisions of the International Convention for
the Protection of Industrial Property (the Paris Convention). Chile's
intellectual property regime is generally compatible with international
norms, with a few exceptions. Industrial designs and models are
protected for a non-renewable period of 10 years. The registration of
trademarks is also valid for renewable periods of 10 years.
In 1992, the Chilean Congress approved legislation that extends the term
of copyright protection from 30 to 50 years. Despite the presence of
copyright protection, however, industry sources estimate that copyright
infringement in Chile cost U.S. firms $24 million in 1991, $15 million
of which was associated with the piracy of computer software. An
estimated 80 percent of all software installed in Chile is pirated.
Software piracy should decline as local suppliers adopt more vigorous
legal strategies to protect their rights.
A common problem faced by foreign companies that wish to begin
operations in Chile is that foreign trademarks may already be registered
by other individuals or companies. Chilean courts have been supportive
in cases where the trademark has been "stockpiled" but gone unused, but
less so in cases where investments were made in use of the trademark.
In either case, proceedings can be lengthy and expensive. The foreign
firm should make a business decision whether to take legal action or
negotiate with the party who registered the trademark. A trademark
should be registered as soon as the exporter/investor has any intention
of doing business in Chile. Ownership of the trademark is not
prejudiced by lack of use in cases where the registered party makes use
of the mark in other countries, and trademarks may be perpetually
registered in periods of ten years at a time. Firms wishing to register
their trademarks should do so at the Ministry of Economy, Departamento
de Propiedad Industrial.
Need for local attorney
Given that contracts with Chilean firms must abide by Chilean laws, U.S.
companies entering the Chilean market should have all legal documents
drawn up or checked by a qualified local attorney. The Commercial
Section of the U.S. Embassy in Santiago can supply a list of attorneys
practicing in Santiago.
Suppliers can establish their legal relationship with a local
representative in one of two ways: (1) an ordinary work contract
regulated by Labor Law 19.010, for which some legal guidance is
advisable; or (2) the more customary commercial or commission contract,
where the parties establish their own terms and conditions, and are not
bound by requirements of LL-19.010, especially its severance conditions.
To avoid legal expenses under a commission contract, the supplier
should:
(a) establish specific performance conditions for the representative;
(b) decide upon ground rules for termination; (c) determine territory to
be covered by the representative, as the supplier may later wish to
appoint additional agent(s) elsewhere in Chile; and (d) have local
counsel review the text to ensure its consistency with Chilean legal
standards.
In establishing a contractual relationship with a local representative,
the U.S. supplier should ascertain its contractual liability vis-a-vis
the representative under Chile's labor law.
AmCham Chile
The American Chamber of Commerce of Chile (AmCham) can be helpful in
doing business in Chile. A non-profit organization with over 400
corporate members and over 1000 individual members, AmCham conducts a
variety of activities designed to promote trade and investment, and
provides a good way to meet U.S. and Chilean businesspeople. It is also
active in lobbying, and is working aggressively on Chilean accession to
NAFTA. For more information on AmCham and its activities, please call
Claudio Garcia, President, or Francisco Bernales, General Manager, tel.
(562) 206-6604 or (562) 206-4163, fax (562) 672-7991.
CHAPTER V: LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENTS
Best Prospects for Non-Agricultural Goods and Services
(ranked by growth rate)
(millions of dollars)
Sector Total Total U.S. Imports Market
Market Imports (1995) Growth (%)
(1995) (1995) (1996-1998
1. Energy Product.
Equipment 700 462 56 35
2. Franchising 110 89 66 35
3. Pollution
Control 509 506 202 23
4. Telecom.
Equipment 552 502 216 20
5. Sporting/
Rec. Goods 182 146 36 20
6. Computers &
Peripherals 470 466 246 15
7. Mining Equip. 697 633 214 15
8. Medical
Equipment 132 132 67 12
9. Port Equipment 266 268 149 8
1
Energy Production Equipment
ELP
The energy sector is one of the most benefitted by Chile's economic
growth. Several energy company executives and experts believe that
feasibility studies underway will lead to future projects and
construction totalling $3 billion by the year 2000.
The Chilean Energy Commission reports over 24 energy projects which
could be operational within 8-10 years. Fifteen of these projects are
for hydroelectric power generation. U.S. producers will benefit from
the current lower value of the U.S. dollar since the majority of
purchases are negotiated in dollars.
Private investment projects are estimated at $600 million in
hydroelectric generating plants and $600 million in thermoelectric
plants. Demand is increasing for gas-fueled thermoelectric plants, an
area where the U.S. has the leading technology. A new pipeline to
supply gas from Argentina, for which a bid will awarded shortly, should
also increase demand for gas-fired plants.
The Colbun-Machicura company, controlled by the Chilean Government
entity Corporacion de Fomento de la Produccion (CORFO), is also planning
to build a new plant near Valparaiso, with a generating capacity of 350
MW and investment of $220 million.
Most promising subsectors:
1995-1996
(millions of dollars)
Gas generators 26
Generating sets 20
Heat exchangers 18
Projected investment by major energy ventures (in millions of dollars):
Chilectra 35
Colbun 220
Chilgener 230
Edelnor 70
Enersis 680
DATA TABLE
(millions of dollars)
1994 1995 1996
Total market size 350 700 1400
Local production n/a n/a n/a
Exports 35 31 39
Imports 231 462 924
Imports from U.S. 28 56 112
The above statistics are unofficial estimates.
2
Franchising
FRA
Franchising in Chile is in its initial phase. It has rapidly expanded
since 1990, and presents fresh and challenging ground compared to other
Latin American countries. The most developed segment of franchising in
Chile is fast food. Service franchises are beginning to develop and
provide an excellent market because, in general, services in Chile
(maintenance and repair services, for example) are performed by small,
inefficient and unreliable shops and/or individuals that have not had
proper training and don't guarantee their work. Undoubtedly, U.S.
service franchises can provide efficient, timely and reliable service,
meeting the demands of an increasingly fast-paced, modern and growing
city. Santiago (and, later, the rest of the country), is coming to a
point in which its population has less and less time available and
spends more time commuting, leaving less time for domestic chores.
Not only Santiago is promising for franchising; the most important
regional cities are growing as well. Shopping malls are being built,
and the fast food industry is rapidly establishing a presence. Regions
provide an excellent future market even though U.S. franchisors must
remember that they can't expect franchisees to cover the entire national
territory immediately. National coverage will probably be a long
process that will occur together with the modernization of cities
throughout the country.
Growth in the franchising sector is projected at 35 percent for 1996.
About 61 percent of existing franchises are of U.S. origin; U.S.
products and services enjoy great receptivity and reputation. The U.S.
is viewed as the leader in franchising.
While Chilean law provides good conditions for foreign firms to operate
locally, no special law exists for franchise companies, which are
subject to regular trade laws. The Asociacion de Franchising de Chile
(AFICH), recently established, has as one of its main objectives the
obtaining of special franchise legislation. The current withholding tax
on royalties, which are limited to 5 percent of revenues, is
35 percent.
DATA TABLE
There are no official figures on franchise relating to sales or
investment. AFICH estimates that the total market is $110 million. The
Embassy estimates there approximately 52 franchises currently operate in
Chile, with 220 franchisees. In 1994, sales totalled approximately $110
million. About 10,000 are directly employed. Approximately 61 percent
of franchising businesses are of U.S. origin, 21 percent are of third
country origin, and 17 percent are Chilean. About half of U.S.
franchises operating in Chile are found in the fast food industry.
3
Pollution Control Equipment
POL
The new Environmental Law, passed in March 1994, established a general
environmental framework. The full implementation of the law requires
specific rules and regulations which are still in process of study and
evaluation. Chile will provide tremendous demand for pollution control
equipment once the specific regulations are put into effect and the
environmental authorities begin tightened enforcement. Growth of about
30 percent is forecast for the next three years.
As the Chilean economy continues to grow, new businesses will emerge
that will require construction of modern plants. These new plants will
incorporate state-of-the-art environmental technology in order to have
clean production processes. The import demand for pollution control
equipment will be generated by the industrial sector, which will have to
modify production procedures to make them environmentally clean.
Chile, with a few exceptions, does not manufacture pollution control
equipment. U.S. products are highly regarded because of their high
technology and quality. Japan and European countries are strong
competitors offering soft loans, grants, and training.
Although most investments in pollution control equipment will take place
only after the Chilean government implements the specific regulations,
U.S. manufacturers should be prepared to take advantage of this
promising market and establish contact with potential partners and/or
major end-users.
DATA TABLE
(millions of dollars)
1994 1995 1996
A. Total market size 392.0 509.0 661.7
B. Total local production 2.0 3.0 3.6
C. Total exports 0.0 0.0 0.0
D. Total imports 390.0 506.0 658.1
E. Imports from the U.S. 156.0 202.0 263.2
The above statistics are unofficial estimates.
4
Telecommunications Equipment
TEL
The telecommunications sector has grown at an annual rate of over 14
percent for the past six years. Industry experts estimate an annual
growth of 20-25 percent for the next five years, with imports growing at
the same rate. Local production is small. The main competitors to U.S.
suppliers are Japan and some European countries, such as France, Spain
and Germany. In 1994, U.S. suppliers exported $154 million, a market
share of 38 percent compared to 25 percent in the previous year.
The Chilean telecommunications sector is completely open. Any local or
foreign company that wants to operate in the market can request
authorization from the Undersecretariat of Telecommunications, the
primary authority for supervising and regulating all telecommunications
services. The Telecommunications Law, promulgated March 1994, was
designed to promote competition, encourage the incorporation of new
technologies and value-added services, and provide incentives for
foreign and domestic investment.
The telecommunications sector in Chile will continue to expand because
of the absence of barriers, the demand for continuous upgrading of
existing equipment and networks, and the interest of foreign investors
in establishing alliances with local partners to provide services in
other Latin American countries. Chileans wish to enjoy advantages of
state-of-the-art technologies, and multinational companies, that require
advanced telecommunications systems are setting up their offices in
Chile to manage the Latin American region.
Chilean telecommunications firms have announced investment plans for $3
billion for the next five years. Most of the local companies are
interested in internationalizing their operations to provide global
communications services, including long distance, basic telephony,
cellular, cable television and personal communication services. The
companies' major expansion programs will be concentrated in these areas.
DATA TABLE
(millions of dollars)
1994 1995 1996
A. Total market size 447.0 551.6 681.6
B. Total local production 46.0 50.6 55.6
C. Total exports 2.2 2.9 3.7
D. Total imports 401.3 501.5 626.5
E. Imports from the U.S. 154.8 215.6 301.8
The above statistics are unofficial estimates.
5
Sporting Goods/Recreational Equipment
SPT
The sporting goods and recreational products market in Chile is steadily
growing due to the sustained improvement of the economic conditions in
the country. More and more people who didn't have access to sports,
camping, outdoor and recreational activities are now able to participate
at different levels. Financially and technically, these levels range
from very simple to highly sophisticated.
As sports and outdoors recreational activities increase, the market for
sporting good products grows steadily, with annual growth of 20 percent
predicted for the next three years. This increase is fueled by the
combination of improved economic conditions and the awareness of the
general public of the need to become and remain fit and healthy,
together with a back-to-nature trend instigated by environmental
awareness.
Sporting goods of U.S. origin are regarded as of excellent quality, but
imports are hindered by higher prices relative to those of Asian
competitors. Many products imported from the Far East incorporate U.S.
technology and license rights, but manufacturing in countries with lower
labor costs results in highly competitive prices. However, U.S. market
share increased by 23 percent in 1994. Local production is not
significant, and includes a small range of products. However, there is
increasing interest in manufacturing locally under license agreements,
since labor costs in Chile are low compared to the United States.
Best prospects for U.S. sporting and recreational products and equipment
are motorboats, fitness equipment, mountain bikes, camping and outdoor
activity equipment. There is a proliferation of eco-tourism and
adventure-tourism companies that mainly offer river rafting, canoeing
and kayaking as well as mountain climbing. The water-related sports
market has grown significantly in the last four years due to the
construction of recreational resorts, some of which include marinas.
There are still projects to be developed in this area.
DATA TABLE
(millions of dollars)
1994 1995 1996
A. Total market size 148 182 218
B. Total local production 49 59 71
C. Total exports 19 23 29
D. Total imports 118 146 176
E. Imports from the U.S. 28 36 48
The above statistics are unofficial estimates.
6
Computer & Peripherals
CPT
Chile is a good and growing market for U.S. suppliers of computers and
related equipment. Chile, although a small market, is one of the most
developed and open economies in Latin America. With Chile's booming
economy, it is expected that the use of computer equipment will
experience a steady growth, over 15 percent per annum, as productivity
rises and industries expand. Chile has the largest per capita ownership
of PC's in Latin America with 3.4 PC's for every 100 people. The U.S.
figure is 30 PC's per 100 people.
Chilean imports of information technology products and related equipment
totalled approximately $700 million in 1994. Of this amount,
approximately $410 million represent imports of computer equipment.
Computer sector growth is estimated to reach 19.8 percent through 1997.
Personal computers and workstations show the highest demand, with a 23
percent growth rate, followed by mid-size equipment, which will grow by
7 percent. Industry executives have predicted that in one to two years,
only four brands will remain at the top of the personal computer market.
According to these executives, during this period, the number of
competitors will decrease because Chile, being a small market, is unable
to acquire large quantities, resulting in low profit margins for
importers.
The explosive growth in the personal computer market and the emerging
home market is such that these markets now dominate 50 percent of
computer sector sales. Chile presents excellent sales opportunities for
U.S. products and services, which Chilean consumers value for their high
quality and technology, and excellent support service. A Free Trade
Agreement (FTA) between Chile and the United States promises to give
U.S. suppliers a key competitive advantage: gradual elimination of the
11 percent duty, currently added to the cost of imported goods.
Chile's major supplier of computers and peripherals is the U.S., which
accounts for over 50 percent of the market. The main competitors are
Japan, Taiwan and France.
DATA TABLE
(millions of dollars)
1994 1995 1996
A. Total market size 410 470 540
B. Total local production 3 4 5
C. Total exports 3 4 5
D. Total imports 407 466 535
E. Imports from the U.S. 230 246 264
The above statistics are unofficial estimates.
7
Mining Industrial Equipment
MIN
It is difficult to derive total imports of mining equipment from local
available statistics since the same equipment is used in several
industries and is lumped in harmonized codes for equipment common to all
industries. Nevertheless, reliable sources have placed imports at $550
million and think that an estimate of growth 15 percent for 1995 - 1997
is appropriate, if conservative.
The statistics include the following equipment: heavy mining trucks,
large truck tires, levellers, loaders, compressors, hoists, drilling
equipment, excavators and various smaller machines. U.S market share is
31 percent, with Brazil next at 18 percent, and Japan following with
less than 15 percent. Many large mining projects will begin
construction through 1997. Major mining projects are listed in Chapter
V under Significant Investment Opportunities.
U.S.-made products are appreciated by local end-users for their quality,
the high technology incorporated, and compliance with delivery dates,
which in this particular sector is a critical factor. There is an
excellent opportunity for U.S. mining equipment manufacturers to
participate in Expomin '96, an international fair well-known in Latin
America. For more details on this fair see Appendix G: Trade Event
Schedule.
DATA TABLE
(millions of dollars)
1994 1995 1996
A. Total market size 605 697 797
B. Total local production 55 92 106
C. Total exports 8 14 23
D. Total imports 550 633 728
E. Imports from the U.S. 185 214 246
The above statistics are unofficial estimates.
8
Medical Equipment
MED
The Chilean Government places a high priority on the improvement of the
national public health system. This system provides health care for
approximately 70 percent of the Chilean population, or nearly 10 million
people.
Chile's total 1994 imports of medical equipment and supplies were
approximately $120 million. It is expected in 1995 that this sector's
imports will reach $130 million, with an estimate growth of 12 percent
for 1996 and increased growth thereafter.
A large number of private and some public sector hospitals are expanding
their present facilities or projecting the construction of new ones.
Private hospitals and clinics have the most state-of-the-art equipment
in Chile and the financial resources to upgrade equipment and services.
The U.S. has been for years Chile's most important supplier of medical
equipment. U.S. main competitors are Japan, Germany and France.
DATA TABLE
(millions of dollars)
1994 1995 1996
A. Total market size 120 132 148
B. Total local production n/a n/a n/a
C. Total exports n/a n/a n/a
D. Total imports 120 132 148
E. Imports from the U.S. 57 67 75
The above statistics are unofficial estimates.
9
Port Equipment
PRT
Chile's export sector is very dynamic. According to government sources,
by the year 2000 Chile's exports will reach $20 billion, which means 75
percent expansion of its foreign trade. The fact that 95 percent of
Chile's foreign trade is carried by ship, as well as the growing demand
from neighboring countries to use Chilean ports, has motivated the
government to review the capacity of ports infrastructure and services.
This should lead to growth of 8 percent per year in the market for port
equipment.
Under current law, the Chilean Port Authority (Emporchi) owns and
operates ten of the most important ports, handling some 78 percent of
general cargo and 22 percent of the bulk cargo. The remaining 22 ports
are privately owned. They mostly handle exports and importation of
inputs for the operations of their owners.
The government is currently working on modifications to Emporchi's law,
by which Emporchi can give in concession its terminal operations,
including the right to build and manage the entire operation of the
ports. This initiative may open a new field for private investors and
U.S. suppliers of port equipment.
Likewise, the Chilean government is considering decentralizing
Emporchi's ten ports by creating individual business enterprises capable
of competing among themselves to attract private investment and to
respond to local demands. Each port enterprise would have the ability
to grant administrative concessions to private operators to build new
terminals on state property.
According to sources consulted, Chile will require an investment of over
$300 million in new terminals and expansion of existing ones for the
next three years. The market is principally supplied by imports. All
the principal port equipment brands worldwide are locally represented.
The U.S. port equipment is well- positioned in the local market. For
the past two years, the U.S. has ranked first with an average of 50
percent of all imports, followed by Japan with an average of 13 percent.
Since 1991, local ports have shown a tendency to use more reachstackers
and portainers. Market access for imports of port equipment is barrier-
free. Used capital goods can be imported and are exempt from the
payment of the tax normally imposed on the importation of used equipment
and products, which is 50 percent of the regular 11 percent import duty.
DATA TABLE
(millions of dollars)
1994 1995 1996
A. Total market size 246.60 266.34 287.64
B. Total local production* 1.60 1.73 1.87
C. Total exports 2.70 2.90 3.13
D. Total imports 247.70 267.51 288.91
E. Imports from the U.S. 138.00 149.04 160.96
The above statistics are unofficial estimates.
Best prospects for Agricultural Products
(millions of dollars)
A. Rank: 1
B. Name of sector: Grains
C. PS&D Code: 11
1994 1995 1996
D. Total market size 575.0 569.0 569.0
E. Total local production 382.0 381.0 379.0
F. Total exports 0.0 0.0 0.0
G. Total imports 193.0 188.0 190.0
H. Total imports from U.S. 48.0 57.0 61.0
I. Exchange rate 420 385 370
Comments: Grains (Wheat, Corn & Rice). Chilean production of basic
grains has stagnated in recent years in the face of reduced
competitiveness. Although wheat is subject to import surtaxes (price
bands), U.S. grain sales continue to have solid growth prospects in
Chile.
A. Rank: 2
B. Name of sector: Process. Fruit & Veg.
C. PS&D Code: 16
1994 1995 1996
D. Total market size 121.0 128.0 139.0
E. Total local production 380.0 415.0 440.0
F. Total exports 314.0 345.0 365.0
G. Total imports 55.0 58.0 64.0
H. Total imports from U.S. 10.0 11.0 12.0
I. Exchange rate 420 385 370
Comments: Chile is a growing market for high value products, reflecting
expanded income and changes in consumer habits.
A. Rank: 3
B. Name of sector: Snack Foods
C. PS&D Code: 24
1994 1995 1996
D. Total market size 62.0 67.0 80.0
E. Total local production 80.0 86.0 98.0
F. Total exports 50.0 55.0 58.0
G. Total imports 32.0 36.0 40.0
H. Total imports from U.S. 6.0 8.0 10.0
I. Exchange rate 420 385 370
Comments: Chile is a growing market for U.S. snack foods, reflecting
expanded incomes and changes in consumer habits.
A. Rank: 4
B. Name of sector: Raw Cotton
C. PS&D Code: 04
1994 1995 1996
D. Total market size 38 40 43
E. Total local production 0 0 0
F. Total exports 0 0 0
G. Total imports 38 40 43
H. Total imports from U.S. 3 4 5
I. Exchange rate 420 385 370
Comments: U.S. producers are at a disadvantage to those of Latin
American suppliers because of preferential duties for ALADI countries.
Nevertheless, sales have increased as the Chilean industry U.S. quality
advantages.
A. Rank: 5
B. Name of sector: Pet Foods
C. PS&D Code: 24
1994 1995 1996
D. Total market size 4.9 5.0 5.4
E. Total local production 3.0 3.0 3.0
F. Total exports 0.0 0.0 0.0
G. Total imports 1.9 2.0 2.4
H. Total imports from U.S. 1.8 2.0 2.3
I. Exchange rate 420 385 370
Comments: Demand for balanced feed, particularly pet food, has been
increasing steadily in recent years.
A. Rank: 6
B. Name of sector: Tree Nuts
C. PS&D Code: 14
1994 1995 1996
D. Total market size 10.3 10.5 11.0
E. Total local production 35.0 36.0 36.0
F. Total exports 25.0 26.0 26.0
G. Total imports 0.3 0.5 1.0
H. Total imports from U.S. 0.3 0.5 0.9
I. Exchange rate 420 385 370
Chilean consumption of tree nuts is still low. Expanded market
promotion should result in increased U.S. sales.
A. Rank: 7
B. Name of sector: Fresh Deciduous Fruit
C. PS&D Code: 09
1994 1995 1996
D. Total market size 336.0 349.0 397.0
E. Total local production 1,122.0 1,144.0 1,200.0
F. Total exports 820.0 830.0 840.0
G. Total imports 34.0 35.0 37.0
H. Total imports from U.S. 0.0 0.0 0.0
I. Exchange rate 420 385 370
Comments: Currently, imports of U.S. fruits are restricted as a result
of Chilean phytosanitary regulations. USDA is working to resolve this
issue and hopes to gain access for U.S. importers in the near future.
1994 Agricultural Good Imports
Trade -- Table 2
1994
Total (from world) 930.0
From the U.S. 120.0
U.S. Share of Agricultural Import 13.0%
Agricultural Goods Balance
with the U.S. 810.0
Principal 1994 U.S. Agricultural Exports to Chile
Trade -- Table 3
1994
Corn 41.0
Butter 6.0
Sugar 5.0
Wheat 5.0
Seeds 5.0
Tea 4.0
Principal 1994 U.S. Agricultural Imports
Trade -- Table 4
1994
Tables Grapes 290.0
Peaches & Nectarines 35.0
Wine 35.0
Plums 23.0
Pears 16.0
Vegetable Seeds 14.0
Apple Juice 11.0
Significant Investment Opportunities
List of Foreign Investments-Major Projects-Mining Sector:
Copper
Project Investor/Country Approx. Invest. Product Date
U.S. million Start
Sta.Ines Falconbridge/Canada Copper
Collahuasi Minorco/Luxembourg 3,000 Cathodes 1998
Mamina Codelco/Chile
Inco Ltda./Canada TBD Copper TBD
El Abra Codelco/Chile Copper
Cyprus Amax (USA) 1,000 Cathodes 1998
Tulina Minera Mahogany/Canada Copper
Minera Northern/USA 7 Cathodes TBD
Leonor Equatorial Mining Copper
Australia 100 Cathodes 1997
Santa Barbara
(Modern.)& Empresa Minera 160 Copper 1996
Mantos Mantos Blancos -- Cathodes --
Blancos Anglo America/S.Africa -- -- --
Lomas
Bayas Gibraltar Min./Canada 157 Copper 1997
Santa Outukumpu/Finland 100 Copper TBD
Catalina Conc. --
Fundicion Fundicion Refimer 30 Blister 1996
La Negra American Barrick/Canada -- Copper --
Chimborazo Cyprus/USA TBD Copper TBD
Zaldivar Outukumpu/Finland 600 Copper 1995
Placer Dome/Canada Cathodes --
Escondida BHP Utah/Australia 1,100 Copper & 1994
in Op. & RTZ/U.K. Gold --
Expansion Jaco/Japan 520 -- 1997
I.P.C. -- -- --
Las Luces Soc. Las Cenizas/Chile 11 Copper 1996
Citibank/USA -- Concent. --
Cabrito Codelco/Chile -- Copper TBD
North Broken Hill -- (Study) TBD
Australia
Cerro Codelco/Chile Copper
Guante Noranda Minerals -- (Expl.) TBD
Canada
Manto Empresa Minera Mantos 178 Copper 1996
Verde Anglo American/S.Africa -- Cathodes --
(under construction)
El Relincho Outokumpu/Finland TBD Copper TBD
(under exploration) -- -- --
Gold andSilver
Refugio Bema Gold/Canada 130 Gold 1996
Amax Gold Refugio/USA -- --
(under construction)
Aldebaran Arizona Star Resource/Canada
Minera Anglo American
South Africa
(under exploration) 65 Gold TBD
Agua de Codelco/Chile
La Falda Homestake/USA
(under exploration) TBD Gold TBD
Cerro Coya Codelco/Chile TBD Gold TBD
Santa Fe Pac.Gold/USA -- -- --
(under exploration)
Puren Codelco/Chile TBD Gold TBD
Placer Dome/Canada --
(under exploration)
Chimberos Placer Dome/Canada 7 Silver 1996
(under study)
Nevada Cia. Minera San Jose
American Barrick/Canada
(under study) 168 Gold 1997
Tambo Cia. Minera San Jose
American Barrick/Canada
(under construction & exp.) 105 Gold 1995
Andacollo Andacollo Gold Inc.
Gold La Serena Inc.
Dayton Mining Co./Canada 50 Gold 1996
Non-Metallic
Yolanda KAP Resources/Canada Iodine
British Columbia Ltd. 5 Nitrate 1996
Canada
For additional information please contact:
Source: Comision Chilena del Cobre "COCHILCO"
Agustinas 116, Piso 4
Santiago, Chile
Tel: 56/2/672-219
Fax: 56/2/672-3584
Contact: Juanita Gana, Vice President
Corporacion Nacional del Cobre
Huerfanos 1120
Santiago, Chile
Tel: 56/2/690-3000
Fax: 56/2/690-3059
Contact: Juan Villarzu, Executive President
Comite de Inversiones Extranjeras
(Foreign Investment Committee)
Teatinos 120, Piso 9
Santiago, Chile
Tel: 56/2/698-4254
Fax: 56/2/698-9476
Contact: Eduardo Moyano, Vice President
Ministerio de Mineria
Teatinos 120, Piso 9
Santiago, Chile
Tel: 56/2/671-4373
Fax: 56/2/698-9262
Contact: Benjamin Teplizky, Minister of Mining
CHAPTER VI: TRADE REGULATIONS AND STANDARDS
Trade Barriers
Chile generally has few barriers to imports or investment. Foreign
firms operating in Chile enjoy the same protection and operate under the
same conditions as local firms. The Chilean tariff rate is currently 11
percent on nearly all products from most countries, although many
products from Latin American countries with which Chile has trade
agreements enter with lower duties. Imported automobiles are also
subject to luxury taxes based on value (80 percent on the value above
$9700, which is adjusted annually for inflation) and engine size (a
sliding scale). Other imported luxury goods such as yachts, some types
of jewelry, and others are also subject to luxury taxes. Duties on
capital goods purchased for use in export production may be deferred for
a period of seven years and waived under some circumstances. Imports
are subject to the same 18 percent Value-Added Tax (VAT) as are domestic
goods.
Chile's most significant nontariff barrier is the import price band
system for certain agricultural commodities, which currently applies to
wheat, wheat flour, vegetable oils, and sugar. Variable duties are
levied on imports of these commodities in order to keep domestic prices
above the five-year average of international prices. Imports of U.S.
fruits are restricted as a result of Chilean phytosanitary regulations.
Certain industries also claim that aspects of Chilean law hurt their
sales. For example, pharmaceutical companies say that current law does
not provide enough protection, and liquor producers believe their
products are discriminated against.
Customs Valuation
The Chilean customs valuation is based on the normal value of
merchandise, without special discounts, plus freight and insurance
(CIF). Used goods are valued by the customs service according to the
current new value of similar merchandise, discounting 10 percent per
year of use, up to a 70 percent discount.
Import Licenses
According to legislation governing the Central Bank since 1990, import
licenses are granted as a routine procedure. Licenses are required for
weapons and pharmaceuticals. Licensing requirements are maintained
largely as a statistical gathering mechanism, not as a control.
Export Control
Chile applies export controls through the requirement of an export
license, as well as phytosanitary and quality controls on certain
products controlled by the National Health Service (Servicio Nacional de
Salud, SNS), the Agricultural and Livestock Service (Servicio Agricola y
Ganadero, SAG), and the National Fishing Service (Servicio Nacional de
Pesca, SERNAP). Again, the licenses are required more as a means of
gathering statistics.
Import/Export Documentation
Chile's Central Bank requires importers to obtain a registration
certificate for goods valued over $3,000. Exporters must fill out a
registration certificate when exporting goods valued over $2,000 FOB.
This is to help the government gather trade data. Other commercial
forms used by both local importers and exporters are: commercial
invoice, certificate of origin, bill of lading, freight insurance and
packing list.
Temporary Entry
Temporary imports of goods are authorized for government-approved
exhibitions and for temporary demonstration purposes. For Chilean
government-approved exhibitions, no duty or VAT is levied, and goods may
remain in the country up to six months, but must be kept in a warehouse.
Goods imported for temporary demonstration purposes require the resident
end-user or potential purchaser to obtain a temporary admission
certificate from Chilean customs authorities, and are taxed based upon
the number of days they are in the country.
Labeling, Marking Requirements
Imported products customarily consumed by the public must display the
country of origin on them before being sold in Chile. Packaged goods
must be marked to show the quality, purity, ingredients, or mixtures, as
well as the net weight or measure of the contents.
Canned or packaged foodstuffs imported into Chile must bear labels in
Spanish for all ingredients, including additives, manufacturing and
expiration dates of the products, and the name of the producer or
importer. All sizes and weights of the net contents also must be
converted to the metric system. Goods not complying with these
measurements may be imported but not sold to consumers until conversion
is made. Thus, foodstuffs labeled in English have to be re-labeled in
Chile before they can be sold.
Prohibited Imports
The importation of used passenger and cargo transportation vehicles is
prohibited. Exceptions to this import restriction are: used ambulances,
armored cars, mobile homes, prison vans, street and highway cleaning
vehicles, and cement-making vehicles. Importers of these goods pay 11
percent import duty plus the VAT. Fire-fighting vehicles are not
subject to import duty, and VAT is paid on their CIF value only.
Special laws allow new/used car imports by persons returning from exile,
returning after working or studying abroad for a number of years, or
domiciled in domestic free trade zones. These imports are also tax-
exempt.
Standards
The National Standards Institute (Instituto Nacional de Normalizacion,
or INN), has included the ISO 9000 standards as part of Chilean
standards, and is in charge of their promotion among local
manufacturers. The chemical industry is one of the few industries that
has incorporated the ISO 9000 standards to its industrial processing
lines.
Free Trade Zones/Warehouses
Chile's two free trade zones are the Free Zone of Iquique (ZOFRI) in the
northern tip (Region I) of Chile, and the Free Zone of Punta Arenas in
the southern tip (Region XII). ZOFRI encompasses the free ports of
Arica and Iquique. Punta Arenas also has a free port. Modern
facilities for manufacturing, packaging and exporting exist in each
zone.
Duties and VAT requirements are as follows:
(a) imports entering and remaining in Chile's free trade zones pay no
duty or VAT; (b) imports leaving the free trade zones, but remaining in
regions I or XII, which are considered "extended" duty-free zones, pay a
six (6) percent import duty, but no VAT; (c) imports leaving the free
trade zones to enter the greater Chilean market pay full tariff and VAT
charges; (d) subject to negotiations with Chilean customs officials,
imports can remain in-bond for extended periods while awaiting for
transshipment to other countries.
Imported goods may remain in customs warehouses for 90 days. If said
goods are unclaimed after the 90-day period, the goods will be declared
abandoned by Customs and sold at public auction.
Special Import Provisions
Animal Health and Phytosanitary Requirements: Chile occasionally uses
animal health and phytosanitary requirements in a nontransparent manner
which often impedes imports. No official announcement of proposed rule
changes precedes these requirements. U.S. exporters have criticized the
application of phytosanitary requirements to poultry and fresh fruit as
non-tariff barriers meant to discourage imports. Chilean authorities
have in some instances eliminated or liberalized specific requirements
when presented scientific evidence by U.S. animal health or
phytosanitary officials.
Firearms can be imported, but they require a special permit from a
military authority in Chile.
The import of pharmaceutical specialties, cosmetics, and most biological
and bio-chemical preparations require prior registration with the
Institute of Public Health (Instituto de Salud Publica), and may be
subject to special labeling and other requirements, depending on the
nature of the individual product.
Imported goods that are considered inconsistent with Chilean "morals,
public health, national security or environment," require special
authorization to enter into Chile. These include certain personal
security products such as mace sprays, certain chemicals/processes, and
some media products which face review and censoring.
Membership in Free Trade Arrangements
Chile has free trade agreements with Mexico, Colombia and Venezuela
which provide for duty-free trade in most products by the late 1990's.
Chile also has trade liberalization agreements with Argentina and
Bolivia and is negotiating an agreement with Ecuador.
As of mid-1995, the process for admitting Chile to the North American
Free Trade Agreement has begun. The U.S., Canada, Mexico, and Chile
have agreed to negotiate Chile's entry. The first working group
meetings are scheduled for lat e July. The U.S. Congress has said it
will begin deliberations aimed at granting fast-track authority to the
Clinton administration to negotiate the agreement and therefore
facilitate passage of the agreement by Congress without amendment. Such
an agreement would eventually eliminate tariffs on nearly all Chilean
imports of U.S. products and U.S. imports of Chilean products.
The negotiations are not without contentious issues. Intellectual
property protection (especially in the area of pharmaceuticals),
financial services, agricultural products, and textiles all will require
extensive discussion. All sides have expressed their willingness and
desire, however, to resolve pertinent issues in a satisfactory manner,
thus raising hopes for an agreement, possibly before the end of 1995.
CHAPTER VII. INVESTMENT CLIMATE
Openness to Foreign Investment
A key feature of the government of Chile's development strategy is a
welcoming attitude towards foreign investors, which is embodied in the
country's foreign investment law, known as D.L. (for Decree Law) 600.
D.L. 600 was promulgated in 1974 and has frequently been liberalized.
Since 1991, nearly all foreign direct investment in Chile has taken
place through D.L. 600. Under this law, foreign investment must be
approved by the government's Foreign Investment Committee, but approval
procedures are expeditious and not burdensome. Typically, applications
are approved within a matter of days, and almost always within one
month. The rare cases in which applications have been rejected
reportedly involved suspected investor fraud.
Under D.L. 600, investors sign standardized contracts giving them the
rights:
-- to receive non-discriminatory treatment;
-- to participate in any form of investment;
-- to hold assets indefinitely;
-- to remit or reinvest earnings immediately and remit capital after
one year;
-- to opt for either national tax treatment or a guaranteed rate
(currently set at 42 percent) for the first ten years of an investment;
and
-- to acquire foreign currency at the inter-bank rate of exchange.
This welcoming attitude to foreign investment, along with the country's
wealth of natural resources, has led to approximately $16 billion of
foreign investment in the 1986-1994 period. Foreign investors have
purchased many of the assets privatized by the Chilean government over
the last decade. (See CHAPTER X, Appendix D for statistics.)
Despite Chile's generally positive attitude toward foreign capital,
certain negative treatment of foreign capital persists. Profits may be
repatriated immediately, but capital may not be repatriated until after
one year. Also, the Chilean government requires that 30 percent of
borrowed funds and deposits from foreign sources, and proceeds from
"secondary" American Depository Receipts issues, be placed in a non-
interest bearing account (known as the "encaje") at the Central Bank for
one year. (Alternatively, investors may pay the Central Bank an amount
equal to the interest that would be foregone.) This discourages the use
of financing sourced abroad by raising its cost. Supplier credits are
exempt from the encaje requirement.
Foreign investors can choose to have their profits taxed at a 42 percent
rate for the first ten years of their investment or at the rate that
applies to local firms, currently 35 percent on fully-distributed
earnings. (Chile and the U.S. have no tax treaty, so U.S. investors'
income may be taxed in both countries.) Investors choosing not to use
D.L. 600 may invest via the provisions of Chapter XIV of the Central
Bank's foreign exchange regulations.
The major sectoral exception to the government's openness to investment
is in the fisheries sector. According to 1991 amendments to the
navigation law (D.L. 222), vessels fishing in Chile's 200-mile exclusive
economic zone (EEZ) must have majority Chilean ownership. The law
permits bilateral agreements to allow foreign-owned vessels to fish in
Chile's EEZ, but no such agreements have been concluded. Other areas in
which national treatment is not granted include cabotage and purchase of
land in border areas. Top management (but not ownership) of radio and
television broadcasting firms is reserved for Chilean nationals. Banks
must establish via branches, and other financial firms must establish
subsidiaries. Finally, D.L. 600 gives the Central Bank the authority to
restrict foreign investors' access to internal credit if a credit
shortage exists. This authority has never been exercised.
Chile does not subsidize or offer incentives to attract specifically
foreign investment, although corporate tax exemptions are available to
both foreign and Chilean firms investing in the extreme northern or
southern areas of the country. The only performance requirements are
imposed on automotive assembly plants, which receive tax advantages
linked to domestic content and export levels.
Conversion and Transfer Policies
As stated above, firms that invest via D.L. 600 may remit earnings
immediately and may remit capital after one year. Investors are
guaranteed access to foreign exchange in the inter-bank currency market.
Firms that invested via the Chapter 19 debt-equity swap program may
remit capital and profits after five years at the prevailing inter-bank
exchange rate. (Chapter 19 investments ceased in 1991 after the rise in
price of Chilean debt to near-par eliminated the incentive for such
investments. The five-year limit will expire by end-1995 on all but a
handful of investments.) Delays in repatriation are brief. The Frei
government, which took office in March of 1994, has continued its
predecessors' gradual liberalization of capital controls. It has made
it easier to raise funds abroad by placing securities and eliminated the
requirement that a set percentage of export earnings must be repatriated
to Chile.
The Central Bank reserves the right to disallow access to the inter-bank
market for royalty payments in excess of five percent of sales. In such
cases, firms would have access to the informal market, which almost
always has a rate within one-half of one percent of the inter-bank rate.
Also, the Chilean Internal Revenue Service reserves the right to prevent
royalties of over five percent of sales from being counted as expenses
for domestic tax purposes.
Expropriation and Compensation
Chilean law grants the government broad authority to expropriate the
property of foreign investors. The 1973-1990 military regime and the
two democratic governments that have followed it have opposed any
intention to nationalize private firms. All outstanding expropriation
cases of foreign firms were resolved by the military government, which
provided compensation, and there have been no recent actions to suggest
that expropriation or "creeping expropriation" is likely in the
foreseeable future.
Dispute Settlement
Except for U.S. investment covered by Overseas Private Investment
Corporation insurance (see "OPIC and Other Investment Insurance
Programs"), disputes involving U.S. investors typically are settled
informally in negotiations between the investor and the concerned
government agency. Any dispute not resolved in this way is referred to
local courts for adjudication. Recourse to the courts is generally not
an attractive alternative for foreign investors, because civil suits
often take years to resolve, and litigants often choose to settle out of
court.
Chile's bilateral investment protection agreements with several
countries (see "Bilateral Investment Agreements") allow for binding
international arbitration between the government and investors.
Different agreements contain varying procedures -- some allow the
investor to choose either the host country's legal system or
international arbitration but not both, while others specify that
disputes must pass through the host country legal system before recourse
to international arbitration. Chile joined the International Center for
the Settlement of Investment Disputes in 1991. The U.S. and Chile do
not have Bilateral Investment Treaty.
The Central Bank's imposition in 1991 of the "encaje" reserve
requirement on external debt (see "Openness to Foreign Investment")
raised concern in the investment community. Although it applies to
foreign and domestic investors alike, the measure was of greater concern
to foreign firms because of their reliance on external credit. Claiming
that the Central Bank lacked the authority to impose the measure, the
local subsidiary of a U.S. investor unsuccessfully challenged the encaje
in the Chilean courts in 1992.
Political Violence
In the years since the 1990 return to democracy, there have been few
major incidents of politically-motivated damage to projects and/or
installations. Three terrorist groups are sporadically active in Chile.
These groups have primarily targeted the Chilean security forces, but
occasionally they have placed bombs at U.S.-related sites, particularly
Mormon churches. Such actions are especially common when the U.S.
military takes a high profile in international affairs. There have been
no occurrences of anti-U.S. mob violence or terrorist acts by
international terrorist groups.
Performance Requirements/Incentives
There is only one provision for performance requirements, pertaining to
automobile assembly operations (See "Openness to Foreign Investment").
The Foreign Investment Committee does not apply any special performance
requirements in its review of projects.
Right to Private Ownership and Establishment
Chile conducts pro forma screening of foreign direct investment, as
described in section "Openness to Foreign Investment". Except for the
fishing sector and others noted above (see "Openness to Foreign
Investment"), Chile does not restrict the right of establishment.
Protection of Property Rights
Chile's intellectual property regime is generally compatible with
international norms, but its protection of patents remains deficient.
Efforts to enforce intellectual property rights in Chilean courts have
been successful. Chile does not have a sui generis statute for
protecting the design of semiconductors, nor does it have comprehensive
trade secret protection. Chile belongs to the World Intellectual
Property Organization.
The Industrial Property Law promulgated in 1991 substantially improved
Chile's protection of industrial patents, but falls short of
international standards. The law provides a patent term of 15 years
from the date of grant. This will have to be changed to 20 years by the
year 2000 as a result of the Uruguay Round agreements. The law also
does not consider plant and animal varieties as patentable subject
matter. Also, the law does not provide transition (or "pipeline")
protection for pharmaceutical patents filed before the law's
promulgation. Because of the long lead times involved in the marketing
of new pharmaceutical products, the law will not prevent local companies
from pirating foreign pharmaceutical patents for several more years. In
addition, the registration procedures required by the health ministry to
market new drugs are more onerous for the first-to-file, which tend to
be foreign firms. Finally, the Central Bank reserves the right to
disallow access to the inter-bank foreign exchange market for payments
for the use of patents that exceed five percent of sales.
These shortcomings have kept Chile on the U.S. Trade Representative's
"Special 301" Watch List (countries with deficient intellectual property
rights protection regimes) since 1989.
Chile's copyright law grants recording companies the right to authorize
the use of a work for 50 years. U.S. recording industry representatives
have said that the law grants more power to authors relative to
producers than is the industry norm.
Chilean law provides for the protection of registered trademarks and
prioritizes trademark rights according to filing date. Local use of the
mark is not required for registration. Payments for use of trademarks
may not exceed one percent of sales.
Regulatory System - Laws and Procedures
Chile has an anti-monopoly law, different elements of which are
administered by three quasi-judicial commissions. These commissions
have the authority to issue judgments concerning trade remedies, price
regulation, and ownership structure. Their rulings can be appealed to
the courts. Under the law, size alone is not objectionable, but the
abuse of dominant position is. Recent decisions by the commissions and
the courts have blocked allegedly anti-competitive behavior in
telecommunications and civil aviation. Despite this record, enforcement
is uneven, and several industries are characterized by high
concentration and oligopolistic behavior.
Bilateral Investment Agreements
Chilean officials have signed bilateral investment protection agreements
with several countries, including Argentina, Spain, Germany,
Switzerland, France, Belgium/Luxembourg, Malaysia, Brazil, and
Venezuela. Most of these agreements are still awaiting ratification by
the Chilean congress.
OPIC and other Investment Insurance Programs
A bilateral investment agreement with the Overseas Private Investment
Corporation took effect in 1984. In 1987, the U.S. suspended OPIC
operations in Chile because of Chile's failure to recognize
internationally accepted standards of worker rights. In October 1990,
the U.S. resumed OPIC coverage in Chile after the democratically-elected
government reformed Chile's labor code. Chile signed the Convention of
the World Bank's Multilateral Investment Guarantee Agency (MIGA) in
1986. MIGA's first project involved Chile, and it has remained active
here.
Labor
Chile has enjoyed generally calm labor relations since the return to
democracy in 1990. Strikes are rare in the private sector, although
public employees in health, education, and coal mining have held strikes
in the last year. Both employment opportunities and real wages have
risen steadily in the last few years, and first-quarter 1995
unemployment was 5.4 percent. Union membership is voluntary, and about
13 percent of the workforce is unionized. Multiple unions exist in many
companies, and management can negotiate collective agreements
with any of the unions or with ad hoc groups of workers. Unions can
form confederations or nationwide labor centrals and can affiliate with
international labor federations. Although the labor code permits
industry-wide bargaining if labor and management agree, it is not
common. Most contracts are negotiated at the company level. The labor
code does not provide for labor participation in management, but some
unions have inserted profit-sharing provisions into labor contracts.
The minimum monthly wage was increased to 58,900 pesos (about 160
dollars at the current exchange rate) in June 1995. About 85 percent of
workers earn more than the minimum wage. Workers are also paid a family
allowance, which employers may deduct from their tax bills. The Chilean
government is a signatory to ILO conventions on worker rights.
Foreign Trade Zones/Free Ports
The government has authorized the establishment of free trade zones to
help promote export industries. Free zones are located in the northern
town of Iquique and in the southern town of Punta Arenas. A limited
free zone exists in the extreme northern town of Arica. Foreign-owned
firms have the same investment opportunities in these zones as do
domestic entities.
Capital Outflow Policy
Foreign investors may use the inter-bank rate of exchange to repatriate
capital and earnings (see "Openness to Foreign Investment" and
"Conversion and Transfer Policies"). Importers and others with
recognized need also receive access to the inter-bank rate. Others must
use the parallel exchange market. Over the last few years, the exchange
rates in these two markets typically have differed by less than one-half
of one percent.
Regulations governing foreign investment by Chilean individuals and non-
financial corporations are limited. Chilean investment abroad has
increased dramatically in the last few years. The total flow of
investment abroad in 1994 was $1.2 billion, and, as of early 1995, the
stock of investment abroad exceeded $2.4 billion. Regulations governing
investment by financial firms are more extensive, but the Central Bank
is gradually liberalizing some of these restrictions. Insurance
companies, pension funds, and banks may invest only a limited portion of
their assets abroad, in a narrow range of low-risk instruments. The
government does not provide any incentives for investment in developing
countries.
Major Foreign Investors
In 1994, the United States was the largest foreign investor in Chile,
adding $979.0 million to the overall U.S. portfolio in the market.
Canada was second with $505.0 million and Finland was third with $465.0
million. Other foreign investors in Chile include South Africa,
Argentina, Norway, Japan, and Switzerland. The mining sector was far
and away the principal recipient of foreign investment, adding a total
of $1.8 billion in 1994. The services sector received $314.0 million
and the industrial sector received $321.0 million. Other sectors
benefiting from foreign investment in Chile include energy and gas,
fisheries, forestry, transport, construction and agriculture. (See
Chapter X, Appendix D).
CHAPTER VIII: TRADE AND PROJECT FINANCING
Brief Description of Banking System
The banking system offers many of the asset and liability products
available in international financial centers. Foreign trade financing
and money exchange operations are particularly active and efficient
compared to the rest of Latin America.
In early 1994, 38 banks were operating in Chile, high for a country with
a 1993 GDP of $43.6 billion. At the end of 1993, bank assets were $43
billion, loans totalled $25 billion and deposits $20 billion.
Authorities have not allowed new banks to enter the market since the
early 1980's financial crisis, except via purchasing existing banks.
This restriction applies to domestic as well as foreign banks. Vigorous
economic growth in recent years has strengthened bank profits, but
restrictions remain on banks' ability to enter several rapidly growing
areas of business, including pension fund management, factoring and
leasing.
The sector is regulated by the Superintendent of Banks and Financial
Institutions, an agency that reports to the Finance Minister. The
Central Bank, which is autonomous from the government, in conducting
monetary and exchange rate policy and regulating international capital
movements also regulates bank operations.
The only state-owned bank is the Banco del Estado, Chile's largest bank,
which accounts for 15 percent of loans and 19 percent of deposits.
Private banks handle nearly all corporate business. The only Chilean
banks with a direct presence in the U.S. as of the end of 1993 are the
Banco de Chile, which has a branch office in New York and has received
U.S. approval to open a branch in Miami, and the Banco de Santiago,
which has a representative office in New York.
The largest Chilean private banks are the Banco de Chile, the Banco de
Santiago, Banco Osorno, and Banco O'Higgins. The largest foreign bank
is the Spanish Banco Santander. U.S. banks ranked by size of deposits
are: Citibank, Bank of Boston, Republic National Bank of New York, Chase
Manhattan, Bank of America, and Chemical Bank. U.S. banks concentrate
mostly on corporate lending to small and medium-sized business.
Corporate lending is focused on medium-sized businesses, because
restrictions on the percentage of a bank's assets that can be lent to a
single customer lead firms wanting large loans to resort to
international sources of finance.
According to a recent report by Standard & Poor's, Chile's banking
sector is the soundest and most solid in all of Latin America. On the
downside, however, the S&P report frowns upon the subordinated debt to
the Central Bank, originated by its bailout of banks in the early 1980's
financial crisis (the Central Bank "purchased" by means of subordinated
debt a large quantity of bad debt owed to the banks, with the provision
that the subordinated debt be retired out of future profits), and the
restriction of access to international markets. The report adds that
foreign banks have captured 20 percent of the domestic market. The
report concludes that most of the Chilean banking system, current
handicaps and future opportunities (i.e. securitization, bankruptcy
insurance, and factoring) are likely to be tackled within the context of
a pending reform to the Banking Law.
Foreign Exchange Controls Affecting Trading
Money exchange operations are particularly active and efficient by Latin
American standards. As a general rule, currency may be freely traded in
two markets, the informal and the formal or inter-bank market. The
Central Bank is empowered to require that certain transactions be
executed only through the formal market, such as those related to the
import or export of goods and services, foreign loans, capital flows and
profit remittances. It may also determine that certain operations be
subject to prior approval as is the case of foreign loans and
investments, repatriation, as well as hedging and other future market
operations.
The prevailing exchange rate is allowed to float within a 20 percent
band around a central rate (a "crawling peg") that is adjusted to
compensate for differences between Chilean inflation and that of its
trading partners. The band allows for significant fluctuation in the
real value of the peso. For example, the peso appreciated in real terms
in each of the years 1991-1993, and it appreciated by an additional 5
percent in real terms in the first five months of 1994.
General Financing Availability
Companies utilize a variety of financing sources, including retained
earnings due to strong profitability, stock, direct investment, bank
debt, bonds and, since 1993, through the issue of ADRs on U.S. Stock
Exchanges, Eurobonds are also utilized. The larger corporations have
evolved from the use of bank debt to public source of funds such as
stock and bonds issued locally and also to international capital
markets.
The upgrading by Moody's of Chile's investment grade rating from BBB to
BBB+ in 1993 and then to BAA+ in mid-1995 (the highest rating of any
Latin American country) has opened more opportunities for raising funds
abroad. Standard & Poor's raised its rating to A- in July 1995. Even
before the changes noted above, the list of companies planning to issue
ADRs was growing rapidly.
How to Finance Exports / Methods of Payment
Payment to suppliers is made by an irrevocable letter of credit from a
Chilean commercial bank to the supplier. This is fast and simple, with
no lengthy delays in the remittance of foreign exchange. Payments are
made upon receipt of notice of shipment of goods. Other methods of
payment to suppliers include an unconfirmed letter of credit and open
account. Suppliers dealing in open account usually have developed a
long-standing relationship with the buyer.
Types of Available Export Financing and Insurance
The U.S. Export-Import Bank and the Overseas Private Investment
Corporation provide credit and insurance programs for U.S. exporters and
investors in Chile. The Inter American Development Bank is also active.
The World Bank's Multilateral Investment Guarantee Agency's (MIGA) first
project involved Chile, and it has remained active here.
Available Project Financing
Major project financing is available through issue of equity and bonds
in the international capital market, and through syndicated loans (see
General Financing Availability above). Eximbank does not offer project
financing in Chile.
List of banks with correspondent U.S. banking
arrangements
The following U.S. banks operate in Chile:
Telephone Fax
Bank (56-2) (56-2)
------------------------- ---------- ---------
American Express Bank Ltd. 671 3259 672 3214
Bank of America NT & SA 699 4501 698 8746
Bank of Boston 639 3841 639 1297
The Chase Manhattan Bank, NA 699 0068 690 5177
Chemical Bank 672 1053 699 2089
Citibank, NA 690 8000 690 8505
Republic National Bank of N.Y.695 2002 698 7512
The following banks, both Chilean and foreign-owned, maintain
correspondent banking relationships with U.S. banks:
Telephone Fax
Chilean Bank (56-2) (56-2)
------------------------ ------------ -----------
Banco BHIF 698 0000 698 4704
Banco BICE 692 2000 696 5324
Banco Concepcion 698 2741 696 0271
Banco de A. Edwards 631 3000 638 0904
Banco de Credito e Inversiones 696 6633 699 0279
Banco de Chile 637 2440 637 2560
Banco de Santiago 692 4000 696 7930
Banco del Desarrollo 698 2901 671 5547
Banco Internacional 638 3894 633 9134
Banco O'Higgins 630 4000 698 3730
Banco Osorno y La Union 696 0414 672 8449
Banco Security 632 5502 633 2156
Banco Sud Americano 692 6000 698 6008
Banco del Estado 698 1209 698 1209
Non-Chilean Banks
-------------------------
ABN Tanner Bank 671 5776 672 2696
Banesto Chile 698 1873 672 8902
Banco Continental Group
Credit Lyonnais 672 2760 671 3307
Banco de la Nacion Argentina 671 2045 698 7341
Banco do Brasil 698 1821 672 7421
Banco do Estado de Sao Paulo 695 1307 672 2459
Banco Exterior 639 4731 639 6095
ING Bank 672 1037 699 1113
The Bank of Tokyo Ltd. 633 2031 633 0742
Banco Real 672 7729 696 5874
Banco Santander-Chile 631 2000 696 0622
Banco Sudameris 638 1514 633 0957
CHAPTER IX: BUSINESS TRAVEL
Business Customs
U.S. business people will find that business practices in Chile and the
United States are very similar. The business day usually begins at 9
a.m. and ends between 6 and 7 p.m. Lunch breaks usually begin at 1 p.m.
and are an hour long, unless business is being conducted, in which case
two to three-hour lunches are common. Although social occasions rarely
begin at the indicated time, business meetings always do.
Many Chilean business people are well-educated professionals who travel
internationally and speak English. However, not all speak English, and
foreign business people will find the ability to speak Spanish very
useful and rewarding. Promotional literature should be in Spanish.
Travel Advisory and Visas
There are no current travel advisories issued regarding Chile.
Business people who come to Chile usually travel on a regular tourist
visa, which is issued by immigration officers at the airport upon
arrival. Tourist visas are valid for 90 days and can be extended by the
Ministerio del Interior, Oficina de Extranjeria (Moneda 1342, Santiago,
Chile), or the Gobernacion Provincial outside of the capital city.
Individuals who intend to stay in Chile for more than 90 days but less
than a year for business purposes can be granted a visa from a Chilean
consulate. Holders of this visa should register at the Policia
Internacional where they will be issued a Certificado de Registro.
Those considering scientific, technical or mountaineering activities in
areas classified as border areas are required to obtain authorization
from the Chilean government (Direccion de Fronteras y Limites).
Requests for authorization must be presented to Chilean authorities at
least 90 days prior to the beginning of the expedition.
For those business people who intend to make sizeable investments in a
business, a temporary resident visa may be advisable. This visa is
valid for one year, and can be extended for a second year.
In addition to the above, business people may also be granted a Resident
Under Contract visa. This visa is issued to people who have been
contracted to carry out a specific job, requiring certain
qualifications. This visa is valid for up to two years, and its holders
are allowed to have their spouse and children in the country. A new
visa is required if the holder changes companies. This visa is
requested in Chile at the Ministerio de Relaciones Exteriores (Ministry
of Foreign Relations), Departamento de Inmigracion (Bandera 46, oficina
11; Santiago, Chile).
For current information concerning entry and customs requirements for
Chile, travelers can contact the Chilean Embassy in Washington, D.C.
(see Appendix C "U.S. and Country Contacts").
Holidays
The following are Chile's legal holidays:
Jan. 1 New Year's Day
Varies Good Friday
Varies Easter Sunday
May 1 Labor Day
May 21 Commemoration of the Battle of Iquique
Varies Corpus Christi
June 29 Saint Peter and Saint Paul
Aug. 15 Assumption Day
Sep. 11 Official Holiday
Sep. 18 Independence Day
Sep. 19 Day of the Army
Oct. 12 Columbus Day
Nov. 1 All Saints' Day
Dec. 8 Immaculate Conception
Dec. 25 Christmas Day
Business Infrastructure
Business operations develop in a climate of free enterprise and free
trade. Simplified bureaucratic procedures are the rule, making the
Chilean business environment more transparent and friendly than most in
Latin America. The labor force is regarded as competent, productive,
and relatively well-educated. Current trends include innovation in
export-market products and in a wide range of services for the domestic
market. High rates of foreign and domestic investment have added the
application of new technologies to industrial processes and increased
competition in distribution and marketing.
A number of business groups control large segments of the economy and at
the same time, the number of medium-size and small companies is growing.
Large-scale business is conducted through local corporations whose
shares are quoted on the stock market. Since the 1970's, the Government
of Chile has been involved in a very successful privatization program
that has transferred hundreds of companies and public services to
private operators, many of those with foreign capital participation. As
a result of the privatization program, about 82,000 workers became
shareholders in former state-owned enterprises. Sectors affected by
privatization include steel production, energy generation and
distribution, computer services, telecommunications and mineral
extraction and processing.
U.S. companies involved in manufacturing, services and trade have
maintained successful operations in Chile for decades. The Chilean-
American Chamber of Commerce has a large membership of U.S., Chilean and
international firms, and effectively represents the interests of the
corporate community in Chile.
CHAPTER X: APPENDICES
APPENDIX A: Country Data
Population: 13,348,401
Religion
Catholic: 7,409,528 (76%)
Evangelic: 1,198,385 (12%)
Indifferent/
Atheist: 562,285 (6%)
Growth Rate: 1.8%
Government
System: Bicameral Democracy
Languages: Spanish
Work Week: 40 hours
APPENDIX B: Domestic Economy
1994 1995 1996
------ ------ ------
Nominal GDP 52,200.0 65,00.0 65,000
Growth (%) 4.2 6.0 6.5
Per Capita GDP (USD) 3,700.0 4,200.0 4,600.0
Inflation (%) 8.9 8.0 7.0
Unemployment (%) 5.9 5.3 5.0
Gov't Spending/GDP 26.0 26.0 26.0
Reserves (end-year, USD millions) 13,467.0 16,000.0 18,000.0
Average Exchange Rate (pesos/USD) 420.0 385.0 370.0
Foreign Debt (USD millions) 21,598.0 21,800.0 22,000.0
Debt Service/Exports (%) 26.0 27.0 27.0
U.S. Econ/Mil Aid (USD millions) 4.5 1.7 1.9
APPENDIX C: Trade
Chilean-U.S./Imports and Exports
(millions of dollars)
1994 1995 1996
--------- --------- ---------
Chilean Exports 11,539.0 14,500.0 15,000.0
Chilean Imports 11,539.0 10,500.0 14,000.0
Imports from U.S. 2,638.0 3,000.0 3,300.0
Exports to U.S. 2,012.0 3,200.0 2,400.0
U.S. Pct. of Imports 24.0 24.0 24.0
APPENDIX D: Investment Statistics
Materialized Foreign Investment
Chile - By Country
(millions of dollars)
Country 1993 1994 1995 1996
----------- ------- ------- ------- -------
United States 637 979 1,176 1,469
Canada 426 505 607 759
Finland 54 465 559 698
South Africa 13 83 100 125
Japan 78 67 82 103
Cayman Islands 4 15 19 24
Argentina 49 60 72 90
France 12 27 33 40
Others 442 332 393 460
------- ------- ------- -------
Total 1,715 2,533 3,039 3,798
The above statistics are unofficial estimates.
Materialized Foreign Investments
Chile - By Sector
(millions of dollars)
Sector 1993 1994 1995 1996
--------- ------- ------- ------- -------
Mining 904 1,759 2,109 2,6036
Services 259 314 376 470
Industrial 450 321 385 481
Agriculture 15 22 26 33
Construction 22 39 47 59
Transportation 38 15 19 24
Forestry 22 12 14 18
Fisheries (Aquact.) 2 38 46 58
Energy, gas, water 3 13 15 19
------- ------- ------- -------
Total 1,715 2,533 3,039 3,798
Source: For 1993 and 1994, Comite de Inversiones Extranjeras; statistics
for 1995 and 1996 are estimates based on projected figures by experts,
with an increase of 20% and 25% respectively.
APPENDIX E: U.S. and Country Contacts
Country Government Agencies
Ministerio de Relaciones Exteriores
(Ministry of Foreign Relations)
Contact: Jose Miguel Insulza, Minister
Morande 441; Santiago, Chile
Tel: (56-2) 696-2574 696-4574
Fax: (56-2) 696-8796
Ministerio de Hacienda
(Ministry of Finance)
Contact: Eduardo Aninat U., Minister
Teatinos 120, Piso 12, Oficina 32; Santiago, Chile
Tel: (56-2) 671-0706 671-6479
Fax: (56-2) 671-6479
Ministerio de Economia, Fomento y Reconstruccion
(Ministry of Economy)
Contact: Alvaro Garcia H., Minister
Teatinos 120, Piso 10; Santiago, Chile
Tel: (56-2) 698-3115 672-5164
Fax: (56-2) 698-9476
Ministerio de Trabajo y Prevision Social
(Ministry of Labor and Social Security)
Contact: Jorge Arrate, Minister
Huerfanos 1273, Piso 6; Santiago, Chile
Tel: (56-2) 671-6443 696-4654
Fax: (56-2) 671-6539
Ministerio de Obras Publicas
(Ministry of Public Works)
Contact: Ricardo Lagos E., Minister
Morande 59, Piso 6; Santiago, Chile
Tel: (56-2) 672-4506 ext. 282 671-4179
Fax: (56-2) 672-6609
Ministerio de Salud Publica
(Ministry of Public Health)
Contact: Carlos Massad A., Minister
Mac Iver 541, Piso 3; Santiago, Chile
Tel: (56-2) 639-4084
Fax: (56-2) 639-4001
Ministerio de Vivienda y Urbanismo
(Ministry of Housing and Urban Development)
Contact: Edmundo Hermosilla H., Minister
Alameda Bdo. O'Higgins 924, Piso 6; Santiago, Chile
Tel: (56-2) 633-1624 638-2654
Fax: (56-2) 633-3892
Ministerio de Agricultura
(Ministry of Agriculture)
Contact: Emiliano Ortega R., Minister
Teatinos 40, Piso 9; Santiago, Chile
Tel: (56-2) 696-5896 696-4496
Fax: (56-2) 671-6500
Ministerio de Mineria
(Ministry of Mines)
Contact: Benjamin Teplizky L., Minister
Teatinos 120; Piso 9, Oficina 5; Santiago, Chile
Tel: (56-2) 696-1544 696-5872
Fax: (56-2) 698-9262
Ministerio de Transportes y Telecomunicaciones
(Ministry of Transportation and Telecommunications)
Contact: Narciso Irureta A., Minister
Amunategui 139, Piso 3; Santiago, Chile
Tel: (56-2) 672-6503 ext. 338
Fax: (56-2) 672-4531
Ministerio de Bienes Nacionales
(Ministry of National Resources)
Contact: Adriana Delpiano P., Minister
Juan Antonio Rios 6; Santiago, Chile
Tel: (56-2) 222-4669
Fax: (56-2) 633-6521
Government-Related Agencies
Comision Nacional de Energia
(National Energy Commission)
Contact: Alejandro Jadresic M., Minister President
Teatinos 120, Piso 7; Santiago, Chile
Tel: (56-2) 698-1757 671-4375
Fax: (56-2) 698-1757
Superintendencia de Electricidad y Combustible
(Superintendency of Electricity and Fuel)
Contact: Jaime Schatz, Superintendent
Amunategui 58, Piso 3; Santiago, Chile
Tel: (56-2) 696-4226
Fax: (56-2) 672-7708
Centro de Investigacion Minera y Metalurgica (CIMM)
(Mining and Metallurgy Research Center)
Contact: Sergio Hernandez, President of the Board
Parque Antonio Rabat 6500, Vitacura; Santiago, Chile
Tel: (56-2) 218-4311 242-7446
Fax: (56-2) 218-6015
Comision Chilena de Energia Nuclear
(Chilean Nuclear Energy Commission)
Contact: Eduardo Bobadilla, President
Amunategui 95; Santiago, Chile
Tel: (56-2) 699-0070
Fax: (56-2) 699-1618
Corporacion Nacional del Cobre (CODELCO)
(National Copper Corporation)
Contact: Juan Villarzu, President
Huerfanos 1270; Santiago, Chile
Tel: (56-2) 698-8801
Fax: (56-2) 672-1473
Empresa Nacional del Carbon S.A. (ENACAR)
(State Coal Producing Enterprise)
Contact: Rafael Lopez, Interim General Manager
Antonio Bellet 281; Santiago, Chile
Tel: (56-2) 235-2715
Fax: (56-2) 236-1113
Empresa Nacional del Petroleo (ENAP)
(State Oil and Gas Producing Enterprise)
Contact: Alvaro Garcia Alamos, General Manager
Ahumada 341, Piso 3; Santiago, Chile
Tel: (56-2) 638-1845
Fax: (56-2) 638-0164
Servicio Nacional de Geologia y Mineria (SERNAGEOMIN)
(National Geological and Mining Agency)
Contact: Ricardo Troncoso, National Director
Santa Maria 0104, Providencia; Santiago, Chile
Tel: (56-2) 737-5050
Fax: (56-2) 737-2026
Corporacion de Fomento de la Produccion
(National Development Corporation)
Contact: Felipe Sandoval P., Minister Executive VP
Moneda 921, Piso 8, Oficina 809; Santiago, Chile
Tel: (56-2) 638-0577 638-0521
Fax: (56-2) 671-1328
Comite de Inversiones Extranjeras
(Foreign Investment Committee)
Contact: Eduardo Moyano, Executive Vice President
Teatinos 120, Piso 10; Santiago, Chile
Tel: (56-2) 698-4254
Fax: (56-2) 698-9476
Banco del Estado
(State Bank of Chile)
Contact: Andres Sanfuentes, President
Alameda Bdo. O'Higgins 1111; Santiago, Chile
Tel: (56-2) 670-7000
Fax: (56-2) 698-3299
Servicio de Impuestos Internos
(Internal Tax Service)
Contact: Javier Etcheberry, National Director
Teatinos 120, Piso 6; Santiago, Chile
Tel: (56-2) 698-2051
Fax: (56-2) 671-3669
Servicio Nacional de Aduanas
(National Customs Service)
Contact: Enrique Fanta Ivanovitch, National Director
Plaza Sotomayor 60; Valparaiso, Chile
Tel: (56-32) 21-7911
Beaucheff 1525; Santiago, Chile
Superintendencia de Bancos e Instituciones Financieras
(Superintendency of Banks and Financial Institutions)
Contact: Jose F. Guzman, Superintendent
Moneda 1123, Piso 6; Santiago, Chile
Tel: (56-2) 699-0072
Fax: (56-2) 671-1654
Superintendencia de Valores y Seguros
(Superintendency of Securities and Insurance)
Contact: Daniel Yarur, Superintendent
Teatinos 120, Piso 6; Santiago, Chile
Tel: (56-2) 696-2194
Fax: (56-2) 698-7425
Direccion de Promocion de Exportaciones -- PROCHILE
(Export Promotion Agency)
Contact: Jean Jacques Duhart, Director
Alameda Bdo. O'Higgins 1315; Santiago, Chile
Tel: (56-2) 696-0043
Fax: (56-2) 696-0639
Federacion de Productores de Fruta de Chile (FEDEFRUTA)
(National Fruit Producers' Association)
Contact: Ricardo Ariztia, President
San Antonio 220, Oficina 301; Santiago, Chile
Tel: (56-2) 632-5274
Fax: (56-2) 632-7327
Superintendencia de Administradoras de Fondos de Pensiones
(Pension Fund Administration)
Contact: Superintendent
Huerfanos 1273, Piso 2; Santiago, Chile
Tel: (56-2) 671-6074
Fax: (56-2) 698-5305
Banco Central
(Central Bank)
Contact: Roberto Zahler, President
Agustinas 1180; Santiago, Chile
Tel: (56-2) 670-2000
Fax: (56-2) 698-4847
Comision Nacional del Medio Ambiente (CONAMA)
(National Environmental Commission)
Contact: Jose Goni, Executive Director
Alameda Bdo. O'Higgins 949, Piso 13; Santiago, Chile
Tel: (56-2) 699-2476 699-6127
Fax: (56-2) 671-8805
Corporacion Nacional Forestal (CONAF)
(National Forestry Commission)
Contact: Jose A. Prado, Executive Director
Avda. Bulnes 285, Piso 5, Oficina 501; Santiago, Chile
Tel: (56-2) 696-2833 696-3664
Fax: (56-2) 671-5881
Corporacion Chilena de la Madera (CORMA)
(National Wood Corporation)
Contact: Eladio Susaeta, President
Agustinas 814, Oficina 407; Santiago, Chile
Tel: (56-2) 633-5728 638-4194
Fax: (56-2) 639-7485
Servicio Agricola y Ganadero (SAG)
(Agriculture and Livestock Service)
Contact: Leopoldo Sanchez, National Director
Bulnes 140, Piso 8; Santiago, Chile
Tel: (56-2) 698-2244
Fax: (56-2) 672-1812
Oficina de Estudios y Politicas Agricolas (ODEPA)
(Office of Agricultural Policies and Studies)
Contact: Carlos Furche, Director
Teatinos 40, Piso 8; Santiago, Chile
Tel: (56-2) 696-0671 696-3241
Fax: (56-2) 671-0953
Servicio Nacional de Pesca
(National Fisheries Service)
Contact: Juan Rusque A., Director
Tel: (56-32) 21-7390
Fax: (56-32) 25-9564
Servicio Nacional de Turismo (SERNATUR)
(National Tourism Service)
Contact: M. Ines Mardones, President
Providencia 1550; Santiago, Chile
Tel: (56-2) 236-1416
Fax: (56-2) 236-1417
Ministerio de Obras Publicas, Depto. Concesiones
(Ministry of Public Works, Concessions Dept.)
Contact: Carlos Cruz, Coordinador de Concesiones
Morande 59, OF. 421; Santiago, Chile
Tel: (56-2) 699-2233
Fax: (56-2) 671-0854
Direccion General de Obras Publicas
(General Directorate of Public Works)
Contact: Juan Lobos, General Director
Morande 59, Piso 3; Santiago, Chile
Tel: (56-2) 672-7989
Fax: (56-2)
Superintendencia de Obras Sanitarias
(Superintendency of Sanitary Works)
Contact: Eugenio Celedon, Superintendent
Moneda 673, Piso 7; Santiago, Chile
Tel: (56-2) 633-2082
Fax: (56-2) 698-1537
Servicio de Salud Metropolitano del Ambiente
(Metropolitan Environmental Service)
Contact: Patricia Matus, Director
Bulnes 175, Santiago, Chile
Tel: (56-2) 699-3339 699-3338
Fax: (56-2) 699-3339
Empresa de Ferrocarriles del Estado (FFCC del E)
(Chilean State Railways)
Contact: Ignacio Echevarria, President of the Board
Alameda Bdo. O'Higgins 3322, Piso 3; Santiago, Chile
Tel: (56-2) 779-6515
Fax: (56-2) 776-2609
Empresa Portuaria de Chile--EMPORCHI
(Chilean Ports Management Company)
Contact: Raul Urzua, Director
Blanco 839; Valparaiso, Chile
Tel: (56-32) 257-167
Fax: (56-32) 259-937
Direccion General de Aeronautica Civil
(Civil Aviation Administration)
Contact: General Gonzalo Miranda, General Director
Avda. Miguel Claro 1314; Santiago, Chile
Tel: (56-2) 204-7676
Fax: (56-2) 209-0532
Junta de Aeronautica Civil
(Civil Aviation Commission)
Contact: Juan P. Langlois, Secretary General
Amunategui 139, Piso 7; Santiago, Chile
Tel: (56-2) 698-5594
Fax: (56-2) 699-5138
Country Trade Associations/Chambers of Commerce
Asociacion Chilena de Empresas de Control y Certificacion de Calidad y
Cantidad (ACHICC)
(Chilean Quality Control Association)
Contact: Raul Corthorn, President
Alsacia 165, Las Condes; Santiago, Chile
Tel: (56-2) 242-9474
Fax: (56-2)
Empresa Chilena de Empresas de Turismo (ACHET)
(Chilean Association of Chilean Tourism Agencies)
Contact: Onofre Urrutia, President
Moneda 973, Oficina 647; Santiago, Chile
Tel: (56-2) 699-2140 696-5677
Fax: (56-2) 699-4245
Asociacion Chilena de Empresas de Tecnologias de Informacion
(Chilean Association of Information Technology Companies)
Contact: Osvaldo Schaerer, President
Santa Maria 0508, Piso 4; Santiago, Chile
Tel: (56-2) 735-5755
Fax: (56-2) 735-5754
Asociacion de Bancos e Instituciones Financieras
(Banks and Financial Institutions Association)
Contact: Hernan Somerville, President
Ahumada 179, Piso 12; Santiago, Chile
Tel: (56-2) 671-7149
Fax: (56-2) 698-8945
Asociacion de Distribuidores de Combustibles de Chile
(National Fuel Distributors Association)
Contact: Victor Ahumada, National President
Miguel Claro 1423, Providencia; Santiago, Chile
Tel: (56-2) 205-5456 204-1495
Fax: (56-2) 204-1495
Asociacion de Empresas de Servicio Publico
(Public Utility Companies Association)
Contact: Richard Buchi, President
Andres Bello 1051, Oficina 2001, Providencia; Santiago, Chile
Tel: (56-2) 235-7374 236-1204
Fax: (56-2)
Asociacion de Industrias Metalurgicas y Metalmecanicas (ASIMET)
(Metallurgic and Metalmechanic Industries Association)
Contact: Juan Riveros, President
Agustinas 785, Piso 4, Oficina 454; Santiago, Chile
Tel: (56-2) 638-0501
Fax: (56-2) 639-5088
Asociacion de Productores y Representantes de Productos Lubricantes
(ASOLUB)
(Lubricant Producers and Representatives Association)
Contact: Hector Carvajal, President
Providencia 2601, Oficina 11; Santiago, Chile
Tel: (56-2) 231-7406
Fax: (56-2) 231-7406
Asociacion Gremial de Corredores de Propiedades y Promotores de la
Construccion (ACOP)
(Association of Real States and Construction Promoters)
Contact: Jose F. Montalva, President
Providencia 2008-A, Piso 2; Santiago, Chile
Tel: (56-2) 231-6548 252-0167
Fax: (56-2) 233-5110
Asociacion Gremial de Empresarios Hoteleros del Area Metropolitana
(Metropolitan Area Hoteliers Association)
Contact: Enrique Carvajal, President
Elias Fernandez Albano 171, Piso 3; Santiago, Chile
Tel: (56-2) 671-1937 698-8765
Fax: (56-2) 698-8850
Asociacion Gremial de Industriales Quimicos (ASIQUIM)
(Chemical Industry Association)
Contact: Sergio Robledo, President
Monsenor Felix Cabrera 23, Oficina 21; Santiago, Chile
Tel: (56-2) 232-1843
Fax: (56-2) 231-0097
Asociacion Gremial de la Mediana y Pequena Industria de Chile (AMPICH)
(Chilean Small- and Mid-Size Industry Association)
Contact: Chaquib Sufan, President
Republica 371; Santiago, Chile
Tel: (56-2) 689-6363 689-4260
Fax: (56-2) 689-4260
Asociacion Gremial de Medianos y Pequenos Industriales Metalurgicos
(CORMETAL)
(Small- and Mid-size Metallurgic Industry Association)
Contact: Francisco Naray, President
Ejercito 426; Santiago, Chile
Tel: (56-2) 671-0873 671-4150
Fax: (56-2) 671-0873
Asociacion Gremial Nacional de Duenos de Establecimientos Comerciales
(SIDECO)
(National Association of Commercial Establishment Owners)
Contact: Eduardo Dumay, President
Santa Lucia 302, Piso 4; Santiago, Chile
Tel: (56-2) 633-1108 633-1109
Asociacion Gremial de Laboratorios Farmaceuticos--AGRELAF
(Pharmaceutical Laboratories Association)
Contact: Mario Elortegui R., President
Eliodoro Yanez 1939; Santiago, Chile
Tel: (56-2) 225-9299
Fax: (56-2) 204-5094
Asociacion Nacional de Importadores
(National Association of Importers)
Contact: Jose A. Oyarzun, Manager
Santa Lucia 302, Piso 5; Santiago, Chile
Tel: (56-2) 639-7859
Fax: (56-2) 639-7859
Asociacion de Exportadores de Chile
(Chilean Exporters Association)
Contact: Ronald Bown, President
Cruz del Sur 133, Piso 2; Santiago, Chile
Tel: (56-2) 206-6604 206-4163
Fax: (56-2) 672-7791
Camara Chilena de la Construccion
(Chilean Construction Chamber)
Contact: Blas Bellolio, Manager
Marchant Pereira 10, Piso 3, Providencia; Santiago, Chile
Tel: (56-2) 233-1131
Fax: (56-2) 232-7600
Chilean-American Chamber of Commerce (AMCHAM)
Contact: Claudio Garcia, President
Francisco Bernales, General Manager
Americo Vespucio Sur 80, Piso 9; Santiago, Chile
Tel: (56-2) 208-3451 208-4140
Fax: (56-2) 206-0911
Camara de Comercio de Santiago
(Santiago Chamber of Commerce)
Contact: Peter Hill, President
Santa Lucia 302, Pisos 1,2,3; Santiago, Chile
Tel: (56-2) 632-1232
Fax: (56-2) 632-1232
Camara de la Industria Cosmetica de Chile
(Chilean Cosmetics Industry Chamber)
Contact: Carlos Hurtado, President
Gral. Bustamante 24, Piso 3, oficina E, Providencia; Santiago, Chile
Tel: (56-2) 274-3816 251-8749
Fax: (56-2) 204-9501
Camara de la Industria Farmaceutica de Chile
(Pharmaceutical Industry Association)
Contact: Francisco Medone, President
Hernando de Aguirre 1981, Providencia; Santiago, Chile
Tel: (56-2) 225-2959 225-2461
Fax: (56-2) 205-2060
Camara Nacional de Comercio de Chile
(National Chamber of Commerce)
Contact: Alfonso Mujica, President
Santa Lucia 302, Piso 4; Santiago, Chile
Tel: (56-2) 639-7694 639-6639
Fax: (56-2) 638-0234
Instituto Textil de Chile
(Chilean Textile Institute)
Contact: Mario Garcia, Manager
Bandera 566, Oficina 101, Piso 10; Santiago, Chile
Tel: (56-2) 696-0210 696-0768
Fax: (56-2) 672-5214
Asociacion de Franchising de Chile--AFICH
(Chilean Franchising Association)
Contact: Carlos Fabia, President
Huerfanos 1373, Oficina 810; Santiago, Chile
Tel: (56-2) 697-2813 695-1833
Fax: (56-2) 633-0521
World Trade Center
Contact: Pedro Pablo Alamos, Vice President
Avda. Nva. de Lyon 72, Piso 3; Santiago, Chile
Tel: (56-2) 233-7050
Fax: (56-2) 233-7034
Country Market Research Firms
Instituto Profesional de Estudios Bancarios Guillermo Subercaseaux
Contact: Maria Elena Ovalle, Rector
Agustinas 1476, Piso 10; Santiago, Chile
Tel: (56-2) 698-1972 696-8920
Fax: (56-2) 699-3634
Adimark Ltda.
Contact: Veronica Edwards
Luis Thayer Ojeda 1106; Santiago, Chile
Tel: (56-2) 231-5061 232-8618
Fax: (56-2) 231-0642
C. H. & Associates
Contact: Carol Heitmann, Business Consultant
Avda. Suecia 0119, Edificio Holley, Oficina 502; Santiago, Chile
Tel: (56-2) 232-5485
Fax: (56-2) 232-5486
Instituto Chileno de Administracion Racional de la Empresa--ICARE
Contact: Ricardo Vacarreza, President
Huerfanos 801, Piso 6; Santiago, Chile
Tel: (56-2) 639-4202
Fax: (56-2) 639-3628
Price Waterhouse
Contact: Pedro Deutsch, Director
Huerfanos 863, Piso 2; Santiago, Chile
Tel: (56-2) 638-3023
Fax: (56-2) 633-3329
Langton Clarke (Coopers & Lybrand)
Contact: Diego Valdes, Consulting Partner
Huerfanos 812, Piso 5; Santiago, Chile
Tel: (56-2) 638-1320, 638-3569
Fax: (56-2) 638-2850
Proyectos Industriales Ltda.
Contact: Eduardo Zuniga Pacheco, President
Agustinas 853, Of. 417; Santiago, Chile
Tel/fax: (56-2) 633-4182
Country Commercial Banks
Private Chilean-Owned Banks
Banco BHIF
Contact: Edmundo Hermosilla, General Manager
Huerfanos 1234; Santiago, Chile
Tel: (56-2) 698-0000
Fax: (56-2) 698-5640
Banco Bice
Contact: Gonzalo Valdes, General Manager
Teatinos 220; Santiago, Chile
Tel: (56-2) 692-2000
Fax: (56-2) 696-5324
Banco Concepcion
Contact: Gonzalo Romero, General Manager
Huerfanos 1072; Santiago, Chile
Tel: (56-2) 698-2741
Fax: (56-2) 696-0271
Banco de A. Edwards
Contact: Julio Jaraquemada, General Manager
Huerfanos 740; Santiago, Chile
Tel: (56-2) 631-3000
Fax: (56-2) 631-4100
Banco de Chile
Contact: Segismundo Schulin-Zeuthen, General Manager
Ahumada 251; Santiago, Chile
Tel: (56-2) 637-1111
Fax: (56-2) 698-8288
Banco de Crédito e Inversiones
Contact: Juan E. Musalem, General Manager
Huerfanos 1134; Santiago, Chile
Tel: (56-2) 696-6633
Fax: (56-2) 672-8666
Banco de Santiago
Contact: Hector Valdes, General Manager
Bandera 172; Santiago, Chile
Tel: (56-2) 692-4000
Fax: (56-2) 698-7948
Banco del Desarrollo
Contact: Vicente Caruz, General Manager
Avda. Lib. Bernardo O'Higgins 949, Piso 3; Santiago, Chile
Tel: (56-2) 698-2901
Fax: (56-2) 671-5547
Banco del Estado de Chile
Contact: Arturo Moreno, General Manager
Avda. Lib. Bernardo O'Higgins 1111; Santiago, Chile
Tel: (56-2) 670-7000
Fax: (56-2) 670-5711
Banco Osorno
Contact: Juan C. Martino, General Manager
Bandera 140; Santiago, Chile
Tel: (56-2) 696-0414
Fax: (56-2) 672-1648
Banco Security
Contact: Renato Penafiel, General Manager
Agustinas 621; Santiago, Chile
Tel: (56-2) 632-5502
Fax: (56-2) 633-2156
Banco Sud Americano
Contact: Juan L. Kostner, General Manager
Morande 226; Santiago, Chile
Tel: (56-2) 692-6000
Fax: (56-2) 698-6008
U.S. Banks
American Express
Contact: Susan R.S. Schofield, General Manager
Agustinas 1360; Santiago, Chile
Tel: (56-2) 699-3919
Fax: (56-2) 672-7686
Chemical Bank
Contact: Kathleen Barclay, General Manager
Agustinas 1439; Santiago, Chile
Tel: (56-2) 672-1053
Fax: (56-2) 699-2089
Citibank
Contact: Victor Tevino, Country Corporate Officer
Ahumada 48, Piso 10; Santiago, Chile
Tel: (56-2) 690-8000
Fax: (56-2) 690-8505 672-2325
Bank of America
Contact: Alexander Maurogordato, VP
Agustinas 1465; Santiago, Chile
Tel: (56-2) 699-4501
Fax: (56-2) 698-8746
Bank of Boston
Contact: James E. Callahan, VP and General Manager
Moneda 799; Santiago, Chile
Tel: (56-2) 639-3841
Fax: (56-2) 639-1297
Republic National Bank
Contact: Emilio Drullinsky, Senior Vice President
Huerfanos 1060; Santiago, Chile
Tel: (56-2) 695-2002
Fax: (56-2) 698-7512
The Chase Manhattan Bank
Contact: Marcelo Podesta, General Manager
Agustinas 1235, Piso 5; Santiago, Chile
Tel: (56-2) 699-0068
Fax: (56-2) 690-5340
U.S. Embassy Trade Personnel
Embassy personnel can be reached at:
Hon. Gabriel Guerra-Mondragon, Ambassador
American Embassy - Santiago
Avenida Andres Bello 2800; Santiago, Chile
Tel: (56-2) 232-2600
Fax: (56-2) 330-3710
The Commercial Service of the United States:
Direct Tel.: (56-2) 330-3705
Direct Fax : (56-2) 330-3172
Carlos Poza, Commercial Counselor
James Koloditch, Commercial Attache
Patricia Jaramillo, Commercial Specialist
Mary Lou Lathrop, Commercial Specialist
Isabel Margarita Valenzuela, Commercial Specialist
Maria Clara Vial, Commercial Specialist
Cristina Vidal, Commercial Specialist
Economic Section:
Tel: (56-2) 232-2600
Fax: (56-2) 330-3710
Anthony Interlandi, Economic Counselor
James L. Dudley, Economic Officer
Larry Memmott, Regional Resources Officer
Carlos Capurro, Economic Specialist
Foreign Agricultural Service--FAS:
Direct Tel.: (56-2) 330-3704
Direct Fax : (56-2) 330-3203
Richard B. Helm, Agricultural Attache
Luis Hennicke, Agricultural Specialist
Political Section:
Direct Tel: (56-2) 330-3335
Fax: (56-2) 330-3710
Phillip Chicola, Political Counselor
Agency for International Development--AID:
Merced 230, Piso 1; Santiago, Chile
Tel: (56-2) 638-1014/632-5211/330-3708
Fax: (56-2) 638 -0931
Thomas J. Nicastro, Counselor for International Development
United States Information Service--USIS:
Tel.: (56-2) 330-3706 (Cultural Affairs)
Fax : (56-2) 330-3710
Tel : (56-2) 330-3703 (Cultural, Press and Audiovisual Affairs)
Barbara C. Moore, Public Affairs Officer
Consular Section:
American Citizens Services
Tel.: (56-2) 330-3702
Fax : (56-2) 330-3710
Richard Mann, Consul General
Washington-Based USG Country Contacts
Chile Desk Officers
Department of Commerce:
Contact: Roger Turner
Room Number 3021
U.S. Department of Commerce
14th Street & Constitution Avenue, N.W.
Washington, D.C. 20230
Tel: (202) 482-1495; Fax: (202) 482-4726
Department of Agriculture:
Contact: Edwin Bauer, Area Officer - Western Hemisphere
Room Number 5084S
U.S. Department of Agriculture
14th and Independence Avenue, S.W.
Washington, D.C. 20250
Tel: (202) 720-6878; Fax: (202) 720-6063
Department of State:
Contact: Alex Featherstone
2201 C Street, N.W.
Washington, D.C. 20520
Tel: (202) 647-2407; Fax: (202) 736-4415
Department of Treasury:
Contact: Barbara Geiser
1500 Pennsylvania Avenue, N.W.
Washington, D.C. 20220
Tel: (202) 622-1271; Fax: (202) 622-1273
U.S. Information Agency:
Contact: Howard Leeb
Office of American Republics Affairs
301 Fourth St., S.W.
Washington, D.C. 20547
Tel: (202) 619-5867; Fax: (202) 619-5093/619-5172
U.S. Travel and Tourism Administration:
Contact: Jon Arthur, Regional Director USTTA South America
8125 N.W. 53rd Street, Suite 100
Miami, Florida 33166
Tel: (305) 526-2912; Fax: (305) 526-2915
Other Agencies
Overseas Private Investment Corporation--OPIC
Contact: Cheryl W. Kfuri, Senior Investment Officer
1100 New York Avenue, N.W.
Washington, D.C. 20527
Tel: (202) 336-8492; Fax: (202) 408-9866
U.S. Trade and Development Agency--TDA
Contact: Latin American Country Manager
U.S. International Development Cooperation Agency
Room 309, SA-16
Washington, D.C. 20523
Tel: (703) 875-4357; Fax: (703) 875-4009
Export-Import Bank--EXIMBANK
Contact: Chosei Kuge, Loan Officer-Chile
811 Vermont Avenue, N.W.
Washington, D.C. 20571
Tel: (202) 377-7234; Fax: (202) 566-7524
Chilean Government Agencies in the U.S.
Ambassador John Biehl
Chilean Embassy, U.S.
1732 Massachusetts Avenue N.W.
Washington, D.C. 20036
Tel: (202) 785-1746; Fax: (202) 887-5579
Chilean Consulate - Atlanta, GA
Chilean Consulate - Boston, MA
Chilean Consulate - Charleston, SC
Chilean Consulate - Chicago, IL
Chilean Consulate - Dallas, TX
Chilean Consulate - Honolulu, HI
Chilean Consulate - Houston, TX
Chilean Consulate - Los Angeles, CA
Chilean Consulate - Miami, FL
Chilean Consulate - New Orleans, LA
Chilean Consulate - New York, NY
Chilean Consulate - Philadelphia, PA
Chilean Consulate - Salt Lake City, UT
Chilean Consulate - San Diego, CA
Chilean Consulate - San Francisco, CA
Chilean Consulate - San Juan, PR
Chilean Consulate - San Mateo, CA
Chilean Consulate - Seattle, WA
Chilean Consulate - Washington, DC
Corporacion de Fomento de la Produccion - CORFO
(Chilean Production Development Center)
One World Trade Center, Suite 5151
New York, New York 10048
Tel: (212) 938-0550
Fax: (212) 938-0559
Empresa Nacional del Petroleo - ENAP (National Petroleum Enterprise)
One World Trade Center, Suite 5151
New York, New York 10048
Tel: (212) 938-0557, 938-0558
Fax: (212) 938-0559
Corporacion Nacional del Cobre - CODELCO
(Chilean State Copper Corporation)
CODELCO U.S.A., CODELCO METALS
177 Broad Street, 14th Floor
Stamford, Connecticut 06901
Tel: (203) 425-4321
Fax: (203) 425-4322
ProChile (Chilean Government Trade Bureau)
One World Trade Center, Suite 5151
New York, New York 10048
Tel: (212) 938-0555
Fax: (212) 321-1943
APPENDIX F: MARKET RESEARCH
AVAILABLE AND UPCOMING AGRICULTURAL REPORTS
Agricultural Commodity and Market Reports:
(These are annual reports issued every year in the specified month)
-- Fresh Deciduous Fruit: January
-- Kiwi Fruit: January
-- Seafood: February
-- Tree Nuts: February
-- Strawberries: March
-- Canned Deciduous Fruit: March
-- Fishmeal and Oil: April
-- Sugar and Molasses: April
-- Dried Fruit: April
-- Planting Seeds: May
-- Tobacco: May
-- Tomatoes and Products: May
-- Wine: June
-- Agricultural Situation: July
-- Annual Marketing Plan: September
-- Forest Products: October
-- Avocados: November
-- Dairy Situation: November
AVAILABLE AND UPCOMING INDUSTRY REPORTS, FY 1995
-- Processed Food: October, 1994
-- Recycling Equipment: October, 1994
-- Port Equipment: December, 1994
-- Franchising: January, 1995
-- Railroad Privatization and Investment: January, 1995
-- Personal Computers: February, 1995
-- Safety and Security Equipment: June, 1995
-- Ports: June, 1995
-- Pleasure and Recreational Boats: August, 1995
-- Telecommunications: August, 1995
-- Disposable Medical Products: August, 1995
-- Water Treatment Equipment: September, 1995
-- Air Pollution Equipment: September, 1995
-- Environmental Consulting Services: September, 1995
-- High Tech and Innovative Environmental Solutions: September, 1995
TENTATIVE AREAS FOR INDUSTRY REPORTS, FY 1996
(Subject to change)
Commercial fishing equipment
Autoparts
Forestry equipment
Electro-medical equipment
Individual sport equipment (golf, tennis, racquet ball, fishing,
fitness)
Pulp and paper machinery
Non-fast food franchising
Electricity generating, transmission, and distribution equipment
Mining industry equipment
Agricultural machinery or fruit and vegetable processing machinery
Construction machinery
APPENDIX G: TRADE EVENT SCHEDULE
1. Event Name: SOFTEL '95
Event Locations: Santiago, Chile
Dates of Event: July 11 - 16, 1995
U.S. Recruitment/Promotion: CMC, Exhibition & Conference Producers
Tel: (703) 527-8000; Fax: (703) 527-8006
Post Contact: Patricia Jaramillo at (56-2) 232-2600
2. Event Name: NEW PRODUCTS USA CATALOG SHOW
Event Locations: Santiago, Chile
Dates of Event: August 1995
U.S. Recruitment/Promotion: Jim Boney at (202) 482-3973
Post Contact: (56-2) 232-2600
3. Event Name: EXPOSALUD '95 TRADE FAIR
(Health care industry)
Event Locations: Santiago, Chile
Dates of Event: October 3-7, 1995
U.S. Recruitment/Promotion: ShoWorks
Tel: (509) 838-8755; Fax: (509) 838-2838
Post Contact: Patricia Jaramillo at (56-2) 232-2600
4. Event Name: AUTOMOTOR '95
Event Locations: Santiago, Chile
Dates of Event: August 10 - 12, 1995
U.S. Recruitment/Promotion: Showorks
Tel: (509) 838-8755; Fax: (509) 838-2838
5. Event Name: PRINTPACK
Event Locations: Santiago, Chile
Dates of Event: August 22 - 26, 1995
U.S. Recruitment/Promotion: Showorks
Tel: (509) 838-8755; Fax: (509) 838-2838
6. Event Name: EXPOAGRO
(Agricultural products and equipment)
Event Locations: Santiago, Chile
Dates of Event: September 05 - 10, 1995
U.S. Recruitment/Promotion: Showorks
Tel: (509) 838-8755; Fax: (509) 838-2838
7. Event Name: EDIFICA
(Construction industry)
Event Locations: Santiago, Chile
Dates of Event: September 26 - 30, 1995
U.S. Recruitment/Promotion: N/A
8. Event Name: PUERTO RICO TRADE MISSION
Event Locations: Santiago, Chile
Dates of Event: October 14 - 20, 1995
U.S. Recruitment/Promotion: N/A
9. Event Name: VII CHILEAN CONGRESS ON TRANSPORTATION ENGINEERING
Event Locations: Santiago, Chile
Dates of Event: October 18 - 20, 1995
U.S. Recruitment/Promotion: N/A
10. Event Name: MASSACHUSETTS TRADE MISSION
Event Locations: Santiago, Chile
Dates of Event: October 15 - 18, 1995
U.S. Recruitment/Promotion: Elizabeth A. Ozon
Tel: (617) 367-1830; Fax: (617) 227-3488
11. Event Name: FISA '95
(Very large show featuring products from all industries)
Event Locations: Santiago, Chile
Dates of Event: October 27 - November 5, 1995
U.S. Recruitment/Promotion: Showorks
Tel: (509) 838-8755; Fax: (509) 838-2838
12. Event Name: GROWTH INDUSTRIES
(Catalog show featuring new products and services)
Event Locations: Santiago, Chile
Dates of Event: October 30 - 31, 1995
U.S. Recruitment/Promotion: N/A
13. Event Name: DESTINO USA '96
(U.S. travel and tourism)
Event Locations: Santiago, Chile
Dates of Event: April 22, 1995
U.S. Recruitment/Promotion: Conex Promotions
Tel: (305) 661-7650; Fax: (305) 661-7399
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