Transcript Chile and the United States

Chile and Korea
Chile

Chile`s trade policy

Integration to the world

FTAs Chile - Korea

The future
Chile’s Trade Policy

Key elements
 Open
and fair market
 Dependant
 Small
on international trade
country
 Candid
country
Open and Fair Market

Domestic
 No
subsidies
 No NTB
 No distortions on production

Internationally
 Low
and single tariff rate, across the
board (9%)
 National treatment
 Automatic import licensing
Dependant on International Trade

+ 50% of GDP = x + m

+ 75% of GDP = x + m + s
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Primary products
 Mining
 Forestry
 Fruits
& vegetables
 Seafood
Small Country

Chile = 0.3% of international trade
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Rules and disciplines:
 Goods:
tariff, NTB, customs, safeguards,
A/D and CVD, TBT, SPS, etc.
 Services:
all sectors
 Intellectual
property rights
 Paste/composite:
investment, competition,
transparency, business visas, etc.
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Disputes settlement procedures
Candid Country
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Islander mind: formal, shy, inward
looking, etc.

Legalistic culture

We do not do tricks
Chilean Integration to the World

Unilateral openness

Multilateralism

Bilateralism
Unilateral Openness (UO)

Elimination of non-tariff barriers

Lowered tariff (today 9%)

Open to foreign investment
Multilateralism

GATT (founding member)
 Tokyo
Round: 35% bound tariff
 Uruguay Round: 25% bound tariff, TRIMS,
TRIPS and GATS

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
WTO
FTAA (2005)
APEC (2010)
OECD (observer)
Bilateralism: conditions
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Comprehensiveness
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Beyond WTO
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High standards in disciplines

No exceptions in goods
 Distorted
products: a.i. Oil and Coffee
Bilateralism: types of FTAs

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1st gener. = some
2nd gener. = most
3rd gener. = most + some
rules
FTA = goods, services,
investment, IPR, rules &
disciplines
Economic
Complementation
Agreement
(LAIA)
GATT Art. XXIV
GATS Art. V
Bilateralism: Chilean FTAs

FTA: Canada - Mexico - C.America
- Venezuela - Colombia - Ecuador
- Bolivia - Peru - Mercosur
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Current negotiations: UE - Korea EFTA - NZ/Singapore (observer) U.S./Singapore (informed)
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Perhaps!: U.S. - Australia - NZ Singapore - India - Japan
Chilean Trade vis-a-vis FTAs
350
Percentage of Growth
300
250
200
Mexico
Canada
Trade w/ ag.
Korea
Trade w/o ag.
150
100
50
0
-50
-100
93
94
95
96
97
98
99
FTA Chile-Korea
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September 1999 (Auckland) negotiation are
announced.
Three formal meetings: Dec 1999, March
and May 2000
Terms of reference:
 Comprehensiveness
 Maximum/total
liberalization
 Transparency (negotiation and implementation)
 Meetings: Alternatives venues (other) and
frequency
 English
Interest of Chile I

Market access
 Mining
 Forestry
 Fruits
& vegetables
 Seafood
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Good business for both (complimentary ec.)

Disciplines
Interest of Chile II

Korean investment
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Systemic interest (International arquitecture)
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APEC
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International trend after Seattle
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Reinforce free trader image
Next year situation in Chile
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Bilateral negotiations:
 European
Union
 EFTA
 Mercosur
 Colombia?
 U.S.?
 P-5

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or P-3?
Plurilateral negotiation: FTAA
Multilateral negotiation: WTO round
Present situation
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Waiting for Korean response
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Possible next meeting Dec. 12-15 Seoul.
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“Loosing face”: diminishing support
because of the delay.
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Ergo: a deadline is needed (31.March.01)
“Partners”
“Dancing together”
Chile
Korea