Transcript PowerPoint File

08/04/2015
JOLANTA POLK
COMMERCIAL OFFICER
CHILE
Presentation title
UNCLASSIFIED
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CHILEAN EXPECTATIONS
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Geography
•
Southwest coast of South
America.
•
No direct flights to UK 14 hours via Paris
•
Approximately 4,300 km
(2,666 miles) from the Atacama
Desert in the North to the polar
icecaps in the South.
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Chile: Facts & Figures
Chile: Facts & Figures
Total population
Greater Santiago
Population growth rate
Workforce
Literacy rate
Life expectancy
Inflation rate 2012*
Unemployment **
GDP 2011
GDP growth 2011
GDP growth estimate 2012
GDP per capita 2011 (PPP)
17.1 million
6 million
1.1%
6.8 million
95.7%
79 years
2.5%
6.7%
USD 248bn
6.0%
4.5-5%
USD 17,125
* 12 monthly in June 2012
** July 2012
Sources: INE, Banco Central de Chile, IMF, Economist
Intelligence Unit, World Bank, UN
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Northern Chile
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Tourism
•
Mining
•
Astronomy
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Central Chile
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Metropolitan region
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Vineyards
•
Agriculture
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Southern Chile
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Tourism
•
Forestry/Fisheries
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Sheep and Cattle ranching
•
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Economy - highlights
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Population: 17mn (2012 est.) – 60th in the world
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GDP: $248bn (2011) – 45th in world (5th largest in SA)
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GDP per capita: $17,125 (2011) – 52nd in world
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Growth since 1990 averaging 5% pa
2010 - 6.1%
•
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2011 - 6%
2012 - 5%?
Aspires to be a developed country by 2020
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How?
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Trade in goods and services – 73% of GDP
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Low inflation – Central Bank target of 3%
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Ease of doing business ranking: 39th out of 183
•
Free trade – world’s largest network of FTAs
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UK-Chile connections
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UK exports of goods and services have increased fivefold since 2003
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Chief exports from UK – crude oil, road vehicles,
pharmaceuticals, industrial machinery and beverages
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Chief imports from Chile - Fruit and vegetables, wine
and meat products
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Trade in goods between Chile and the UK has
declined in the first six months of this year.
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Advantages established by law
EU-Chile Economic Association Agreement (since 2002)
What the agreement means for Goods and Services?
- The majority of tariffs on UK goods entering Chile were eliminated
on 1 February 2003, as too were most tariffs on Chilean goods
entering the UK. Most other tariffs completed in 2010.
- Chile and the EU are committed to reducing non-tariff barriers.
- Aims to facilitate trade by reducing technical barriers.
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Doing Business in Chile
• The “English of South America”
• Elevenses/onces
• “Islanders”
• Conservative
• Punctual (for Latin America!)
• Long relationship with UK
• Language not usually a barrier – but Spanish does help
• Face-to-face culture - Visit the market
• Do not treat Chile as a third world market
• A springboard to the region – “strategy not process”
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TVET IN CHILE

Different ways to become a professional:
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on the job training – popular amidst the lower-earning bracket of
population (often uncertified but skilled in the job)
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Liceos tecnicos – secondary school education. 4-year long but only
the last two years dedicated to vocational training. First 2 common
plan (lower middle class, generally poor background – state-funded)
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Technical, post-secondary institutes (usually 1 – 2 years in duration)
– varied quality and often uncertified
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Universities – especially two technical universities – Duoc and Inacap
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Kinds of Schools
Schools
Total
Students
%
Total
%
Municipal
430
45.5%
93.199
45.6%
Private Subsidised
445
47.0%
86.664
42.4%
69
7.5%
24.442
12.0%
944
100.0%
204.305
100.0%
Private
Total
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Kind of Institution
Institutions
Programs
Students
Centro de Formación
Técnica
73
2.934
128.566
Professional Institute
44
6.862
224.301
60
6.714
587.297
177
16.510
940.164
University
Total
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TVET opportunities
Mining
-Chile is the world’s biggest producer of copper with 33% of production
-Most international mining companies are present in Chile: Xstrata, AngloAmerican, BHP, Codelco
-Mining project portfolio for 2013 is 104 billion US dollars
-4.3% of the investment comes from the UK
-The biggest challenge is qualified staff – in the next 10 years
New projects demand more qualified staff in all ranks of qualification.
Critical factors: Cost, Recruitment, Training and Maintenance
- Chile needs 46,000 qualified and certified technicians
- 1 secondary mining school to open this March
- 2 technical institutes with mining careers
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TVET opportunities
Certification
-Hardly any international certification in:
Energy
Tourism
Mining
Skilled labour such as carpentry, mechanics, IT etc
English for professionals
-Agriculture – Chile to become food power by 2020
-Medicine, banking, law
-Tourism
-Mining and energy
-Technology
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