Transcript Chile - Canada

Snapshot of the Chilean Economy
Economy
Source: Central Bank of Chile
GDP 2012
US$ 268 billion (IMF)
GDP per capita (PPP, 2012)
US$ 18.354 (IMF)
Actual interest rate (Monetary
Policy, Jan 2013)
5.0%
Unemployment rate (Avg. 2012)
6.5%
Exports (2012)
US$ 78,8 billion
Imports (2012)
US$ 74,6 billion
Chile’s Sovereign Ratings
Social
Fitch Ratings
AA-
Population
17.6 million
Standard & Poors
AA-
Official Language
Spanish
Moody’s
Aa3
Currency
Peso
Literacy rate
97%
Life expectancy
78 years
2
Chilean Economic Activity
IMACEC Index, which tracks the Chilean economic activity in a monthly basis, has consistently
reached levels above 5% during the past few years. Also, it highlights the 2010 earthquake’s
impact on the economy.
Source: Central Bank of Chile
3
Economic Growth Projections
Growth comparison: World, Latin America and OECD
2000-2013
8
*Projected growth
6
4
4,5*
4,1*
2
2,1*
0
-2
-4
Mundo
Latinoamérica y el Caribe
Chile
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
-6
OECD
Source: International Monetary Fund
4
Outstanding Business Environment
Doing Business 2012
Competitiveness Yearbook 2012
(39 out of 183 economies)*
Singapore
Hong Kong
New Zealand
United States
Denmark
Norway
United Kingdom
Korea
Iceland
Ireland
Chile
Peru
Colombia
Mexico
Uruguay
Paraguay
Argentina
Brazil
Ecuador
Bolivia
Venezuela
Economic Freedom Index
2012 (7 out of 179 economies)*
(28 out of 59 economies)*
1
2
3
4
5
6
7
8
9
10
39
41
42
53
90
102
113
126
130
153
177
Hong Kong
Sweden
Pos.
Protecting investors
29
5
Germany
9
United Kingdom
18
South Korea
22
Japan
27
Chile
28
Czech Republic
33
Peru
44
Brazil
46
Russia
48
South Africa
50
Colombia
52
Argentina
Category
1
55
Chile leads Latin America.
*Selected economies.
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Chile,
unintegrated
país abierto
al mundo
Globally
economy
A country with an open economy: 22 Free Trade Agreements with 59 countries.
Agreements
In force
Agreements signed
but not yet in force
63% of world
population
86% of the
global GDP
Agreements
under negotiation
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Turkey
Ecuador
Colombia
Australia
Peru
Cuba
Panama
Japan
India
P-4
China
EFTA
Korea
United States
European Union
Central America
Mexico
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Canada
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MERCOSUR
Venezuela
Bolivia
Malaysia
Thailand
Hong Kong
Nicaragua
Vietnam
90.5% of Chile´s
export markets
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Source: Government of Chile| Foreign Investment Committee
Avoidance of Double Taxation Agreements (ADTA)
Chile has entered into 25 ADTA with 25 countries.
 Belgium
 Thailand
 Denmark
 Malaysia
 Spain
 New Zealand
 France
 United States
 Ireland
 Russia
 Poland
 Australia
 Portugal
 United Kingdom
 Sweden
 Switzerland
 Norway
 Croatia

Canada
 Colombia
 Ecuador
 Mexico
 Peru
 Argentina
 Brazil
 Paraguay
 South Korea
Agreements in force
Agreements signed but
not yet in force
Agreements under negotiation
Source: Government of Chile, Foreign Investment Committee
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FDI in Top 10 Host Economies
Top 10 host economies
(FDI inflows, average 2009-2011, US$ Billions)
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FDI in Emerging Markets
The FDI historical flows exhibit imbalances among the 3 main emerging markets worlwide:
Em. Asia, Em. Europe and LatAm. However, we observe a positive trend towards Latin
America in the past year, which is estimated to increase this year.
Source: Central Bank of Chile
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FDI Flows into Latin America and the Caribbean
Latin America’s Largest FDI recipients
2011-2012*
(ThUS$ million)
•
Chile became Latin America’s
second largest recipient of FDI in 2012.
United Nations forecasted a US$26.400
million FDI inflow to Chile last year,
however this was topped by the actual
figure of US$28.152 million.
Forecast Growth Rate of FDI
inflows by Region, 2012 (%)
52,70%
* 2012 figures are estimates.
Source: Global Investment Trends Monitor, UNCTAD.
•
While Latin America and the Caribbean
would register an average growth of 7,2%, FDI
flows worldwide would score US$1,3 billion, with
a 18,3% decrease over the previous year. This
figure, close to the 2009 figure, would be
influenced by low FDI inflows to Europe and the
U.S., mainly due to the uncertainty in
macroeconomic policies for investors.
7,20%
World
LatAm
Chile
-18,30%
Source: Global Investment Trends Monitor, UNCTAD.
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FDI in Chile
Figures provided by the Central Bank of Chile exhibit a record level of FDI in 2012, reaching
US$28.152 million, a 62,7% increase from previous record in 2011. This implies a 27,1%
CAGR between 2002 and 2012, placing 2012’s FDI as 11 times the 2002 level.
28.152
Foreign Direct Investment
in Chile (US$ MM)
17.299
15.150
15.096
12.874
12.534
7.173 6.984 7.298
4.307
2.550
2002
2003
2004
2005
Source: Central Bank of Chile
2006
2007
2008
2009
2010
2011
2012
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FDI in Chile, inflows under D.L. 600
1974-2011 (US$82,021 million)
Breakdown by countries
France
2,0%
Breakdown by industries
Others
11,5%
Construction
1,7%
Netherlands
2,1%
United States
24,6%
Mexico
2,2%
Italy
2,4%
Australia
4,6%
Japan
5,5%
Manufacturing
10,9%
Agriculture,
Forestry &
Fishing
1,4%
Mining
34,1%
Transport &
Communications
11,1%
United
Kingdom
8,0%
Spain
19,0%
Electricity, Gas &
Water
18,4%
Services
22,4%
Canada
18,1%
Source: Foreign Investment Committee
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Canadian FDI in Chile
Canada has been the main source of Foreign Direct Investment in Chile for the past decade,
accounting for 24% of total FDI in that period (MMUS$ 7.799), according to the Foreign
Investment Committee.
Foreign Direct Investment in Chile
By Country of Origin (2002-2011)
Canada (Canadá)
13%
24%
Spain (España)
United States
(Estados Unidos)
Japan (Japón)
5%
8%
19%
9%
17%
United Kingdom
(Reino Unido)
Australia (Australia)
6.000
5.000
4.000
3.000
FDI from Canada
2.000
Other FDI
1.000
2011
2010
2009
2008
2007
2006
2005
2004
Source: Foreign Investment Commitee
2003
0
Mexico (México)
2002
5%
Foreign Direct Investment in Chile
(D.L. 600 materialized, US$ MM)
Source: Foreign
Investment Committee
Historical Foreign Direct Investment in Chile
By Country of Origin (1974-2011)
Source: Foreign Investment Commitee
United States
(Estados Unidos)
Spain (España)
18%
25%
Canada (Canadá)
2%
5%
United Kingdom
(Reino Unido)
Japan (Japón)
5%
19%
8%
Since 1974, when FDI measure was first
implemented in Chile, Canada has been the
third largest foreign investor in the country,
accounting for 18% of total inflows
(MMUS$ 14.822).
Australia (Australia)
18%
Source: Foreign Investment Commitee
Italy (Italia)
Others (Otros)
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Investment Opportunities
Mining
Chile is a world class
player.
Mining companies
plan to invest US$91
billion during the next
eight years.
Services
In 2010, service
exports totaled
US$10.8 billion. 15% of
our total exports and
5% of GDP.
Food Industry
Investment
Opportunities:
 Produce Industry;
 Wine Industry and
grape sub-products;
 Olive Industry;
 Meat and Dairy subproducts;
 Salmon Industry;
 Food Ancillary
Industries;
 Elaborated Foods;
 Biotechnology
applied to the Food
Industry.
Source: Government of Chile, Foreign Investment Committee
Energy
High growth potential.
Investment
Opportunities:
 Natural conditions
for NonConventional
Renewable Energy;
 Need for matrix
diversification;
 Energy
independence.
Infrastructure
Chile has an
investment portfolio of
an aggregate amount
of US$7,9 billion in
public tenders.
Manufacturing
& Assembly
Export-oriented
fabrication &
integration of parts &
components.
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International Trade: Chile - Canada
There are 2 main sources to measure international trade between Chile and Canada:
StatsCan and the Central Bank of Chile. Even though there might be differences in their
figures, trends are usually similar.
Chilean EXPORTS to Canada
Statistics
Central Bank
US$ MM
Canada
of Chile
2006
1.635
1.315
2007
1.575
1.304
2008
1.720
1.245
2009
1.520
1.279
2010
1.819
1.287
2011
1.936
1.476
2012*
921
1.268
* 2012 figures from StatsCan are Jan-Jun 2012 only.
Chilean IMPORTS from Canada
Statistics
Central Bank
US$ MM
Canada
of Chile
2006
417
456
2007
710
925
2008
682
953
2009
562
692
2010
572
671
2011
825
847
2012*
389
965
Differences between 2 main
sources:
•
Tariff Codes are different
•
Intermediate destination
sometimes accounted as final
•
Time gaps until product
arrives to destination
* 2012 figures from StatsCan are Jan-Jun 2012 only.
Trade Balance Chile-Canada
(US$ MM)
2.500
2.000
Chilean
EXPORTS to
Canada
1.500
Chilean
IMPORTS
from Canada
1.000
Figures provided by StatsCan
exhibit a positive trend in Trade
Balance between 2007 and
2011, driven by an increase in
Chilean exports to Canada.
TRADE
BALANCE
Chile - Canada
500
0
2006
2007
2008
2009
2010
2011 2012*
Source: StatsCan
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International Trade: Chile - Canada
Chilean exports to Canada are concentrated in few products. Based on Statistics Canada’s
figures, the top 3 exported products (Gold, Silver and Grapes) accounted for 54% of total
exports to Canada in 2011. Likewise, the top 6 exported products (+ Copper, Wine and Fish)
explained 71% of total.
Share in Total Exports (%)
Top 6 Chilean Products Exported to
Canada (71% of total in 2011)
45
40
35
30
25
20
15
10
5
0
Gold
Silver
Grapes
Copper
Wine
Fish
2006
2007
2008
2009
2010
2011
1S12
100%
44
47
54
48
60%
10
40%
20%
11
35
3
9
40
6
5
6
0
14
30
22
2007
59
3
17
2008
2009
2010
Non Minerals
Other Minerals
1
Gold + Silver
35
Copper
45
36
0%
2006
45
64
7
5
2011
1S12
2007
128
20
124
636
75
80
1.064
1.575
68%
2008
28
54
155
621
83
77
1.019
1.720
59%
2009
122
97
141
330
84
73
847
1.520
56%
2010
374
173
167
302
97
76
1.190
1.819
65%
2011
622
256
159
135
100
95
1.367
1.936
71%
1S12
249
75
142
41
47
46
601
921
65%
Source: StatsCan
Chilean Exports to Canada by Sector
(% of total exp.)
80%
Chilean Exports to Canada
US$ MM
2006
Gold
184
Silver
0
Grapes
127
Copper
565
Wine
61
Fish
70
TOP 6
1.006
TOTAL
1.635
% Top 6 / Total
62%
Source: StatsCan
In 2011, minerals accounted for almost
half of total Chilean Exports to Canada.
In terms of products, Gold has
increased significantly its share in the
past few years, while Copper has
exhibited the opposite trend.
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ProChile Canada
ProChile Canada contributes to Chile’s economic development through its promotion abroad,
supporting Chilean exporters to the internationalization of their business in a sustainable
path. Likewise, enhancing the promotion of investment and tourism are new strategic targets
to achieve in the upcoming years.
Exports
Investment
Tourism
1.
TRADE COMMISSION
OF CHILE
In Canada
2.
3.
4.
5.
Strengthen our contact network in Canada, with
a special focus on its four major provinces
Deliver high quality market research to our
Chilean exporters
Organize high quality commercial missions
nationwide
Organize investment attraction activities that
invite Canadian companies to go to Chile
Positioning Canada as an attractive market for
our entrepreneurs
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Chile’s Next Growth Phase: (2010-2030)
Sustainable
Growth
Increased
Productivity Gains
Science &
Education
Innovation &
Entrepreneurship
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The basic elements of our action plan
Chile is a globally integrated economy, with strong foundations and outstanding business
environment. We strongly believe that Chile’s Next Growth Phase (2010-2030) should arise
from becoming a Regional Hub for Entrepreneurship & Innovation.
Culture and
ecosystem
Financing
Human
Capital
R&D
Institutions
Global
Connection
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Where is Chile going to add value
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2013: The year of innovation
Competition for a
better business
environment
Emblematic
Projects
A new culture for
innovation
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Entrepreneurship at the core of a new economy
1. Entrepreneurship
2. Goal
3.
Government
• For and From the people
• Build a strong ecosystem:
• Positive culture - Knowledge & technology - Human networks
• Global thinking - Financing
• Retreat from “market zone” and concentrate where market fails
• Make it easy to create companies
• Avoid red-tape
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New registered activities on an historical record
Earthquake
200
150
Financial
crisis
100
50
Record of
creation of
new
companies
2002=100
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Source: Chilean IRS
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A hub for Global Entrepreneurs
(Snapshot – nota The Economist – October 13th., 2012)
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New R&D Tax Credit
•
•
35% Tax Credit for all R&D expenditure (remaining 65% is tax deductible) =
almost 50% of R&D is “paid” by Gov.
–
All R&D expenditures are allowed, incl operational expenses, real and
personal property, payroll, etc
–
R&D activity can be performed in-house or by third parties, and if
needed, up to 50% can be done in a foreign country
–
Annual maximum tax credit per company (legal entity) is US$1,2 million
(however all remaining expenditure is tax deductible)
–
Tax benefit can be carried forward 10 years
New tax credit law become effective on September 7th 2012
–
Law was approved with overwhelming majority from all parties
–
Law will be valid (i.e. new projects can be certified) until at least 2025
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Centres of Excellence: First Institutional Call – A success!
Fraunhoffer-Chile
• R&D being performed for more
than a year, more than 75 people
contributing to projects, extra
funding leveraged, signing of
additional research contract with
industry, among others
INRIA-Chile
• Has become a Chilean legal entity
and was formally launched as
CIRIC in June 2012. Introducing
new activities with ALMA
(Astronomy)
CSIRO-Chile
• Centre launched, staff being hired
(18 people already), and starting
R&D activities in Santiago and
Antofagasta. Closed funding from
5 major Mining companies.
Wageningen-Chile.
• Around 85 people collaborating.
Articulated cooperation with vast
number of customers, and
exploring new funding
alternatives with other food
industry actors . Officially
launched in July 2012.
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Centres of Excellence 2.0 — New Round!
•
This 2nd Call will not have ex-ante sector or industry priorities in place.
•
Proposals tackling high impact areas for Chile’s economy (or even with the potential of
creating new industries and leverage regional platforms) will be valued better off.
•
Proposals may leverage additional regional funds within the country.
•
Projects should contribute to position Chile as an innovation hub within Latam.
•
Target are Centers with investment close to USD24M
– Institutional Centers: USD 12.8M in 8 years
– Corporate Centers: USD 8M in 4 years and 1:2 funding
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Regional Hub for Entrepreneurship & Innovation
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Trade Commission of Chile | ProChile - Canada
2 Bloor Street West, Suite 1801, Toronto, Ontario
Tel.: 416-924-0176
[email protected]
DISCLAIMER: The information contained in this document is for the purposes of information only and the particular conditions of each specific potential
project may vary from those set out here. The contents of this document should in no way be interpreted as a legally binding obligation of the Republic of
Chile or any other state agency that participates in any way in the processes of administrative approval or of any other nature corresponding under Chilean
law. This information in no way constitutes an authorization to start or exercise the economic activity potentially intended to be developed. The resulting
agreements will be governed and interpreted exclusively according to the laws of the Republic of Chile, their related regulation and the national policies
applicable to each particular case.