Market spotlight: Chile

Date: 26/03/2019
Author: : Laura Kirn
Company: GMCC

With a bright future ahead, Chile enjoys a position of choice in the region. Deemed “South America’s most economically and socially stable and prosperous nation”, Chile is a leader in the Latin American region in terms of competitiveness, globalization, state of peace, economic freedom and low levels of corruption.

Although trade between the UK and Chile is growing slowly, a Trade Continuity Agreement has been signed by the two nations on the 30th of January 2019. This will allow the UK to benefit from preferential trading arrangements such as an advantageous access to the Chilean market and lower prices on some products such as wines and fruits. The new agreement is set to come into effect when the implementation period ends in January 2021 or on the 29th of March 2019 in case of a no-deal.

There are many reasons why the UK is interested in doing more business with Chile. The country is ranked 7th in the Index of Economic Freedom and 56th in World Bank’s ease of doing business – it only takes 1 day to set up a business there.

The well-developed financial market and economic structure of Chile has made the country the 42nd terms largest economy in the world and 5th in South America, where the country holds the highest GDP ($277.08B). As a prosperous nation, Chile has many sector strengths such as: mining, power, retail, education and training, infrastructure…

When looking at exports, Chile is the 42nd largest exporter in the world. Its main commodity is Copper Ore which represents 24% of its exports, followed by Refined Copper with 21%.
In terms of imports, Chile ranks 45th with 6.84% of its imports being cars and 5.81% being refined petroleum.

The UK is now the 6th largest foreign investor in Chile, a position that is likely to improve as trade agreements are being signed. The growing middle class and good political relationship between the two countries shows hope of further trade. According to The Michigan State University, the business climate and country risk ratings are both at A3 level (very low risk) and should encourage foreign businesses to start trading with Chile.

We will be running a Chile Business Clinic on 16th April, for more information and to book your meeting, please see here: http://bit.ly/2IzBxkS

If you are interested connecting with opportunities, gaining information advice and Market Entry Services, email us at exportbritain@gmchamber.co.uk