Exporting to Chile
Risk Profile Chart
Business cycle risk: Moderate
Currency risk: Moderate
Currency inconvertibility risk: Low
Systemic banking risk: Low
Sovereign default risk: Low
Difficulty enforcing contracts: Moderate
Chile Profile
Capital: Santiago
Government: Representative democracy
Language: Spanish
Currency: Chilean Peso (Ch$ / CLP); AUD 1 = CLP 448 at time of printing
Tips: Customary for most services
Visas: None required
Religion: Predominantly Roman Catholic
Seasons: Same as Australia
—Source: FCm Travel Solutions
Red hot opportunities
Chile is a market of growing importance to Australia. In July, Australia and Chile signed a Free Trade Agreement, the first for Australia in Latin America, which is expected to enter into force from January 1, 2009.
Chile is Latin America’s most stable and transparent commercial environment. It has a population of 16.6 million and a GDP of US$164 billion. A recent successful ‘Chile Roadshow’ around Australia, organised by Austrade, highlighted the strong commercial opportunities that exist in the mining, energy, financial services and infrastructure sectors. It emphasised that Chile is an open and growing market for Australian businesses and a solid base to grow and expand into the broader $4 trillion Latin American market.
According to the Department of Foreign Affairs and Trade, trade between Australia and Chile is growing fast. Two-way merchandise trade was $773 million in 2007-08, up from $427 million in 2006-07. Australian exports to Chile include coal, civil engineering equipment, measuring and analysing instruments and rubber tyres. Australian services exports to Chile in 2007 reached $120 million.
Australia is the fourth largest foreign investor in Chile with around US$3 billion of direct investment. It is an investment base for over 70 Australian or Australian-affiliated companies, mainly providing mining technology and services, gas distribution, power generation, engineering and consulting services and information and communications technology.
—Paul Molloy, director of Trade Advocacy & Outreach, Department of Foreign Affairs and Trade