Chile and Korea Chile n Chile s trade

Chile and Korea

Chile n Chile`s trade policy n Integration to the world n FTAs Chile - Korea n The future

Chile’s Trade Policy n Key elements u Open and fair market u Dependant on international trade u Small country u Candid country

Open and Fair Market n Domestic u No subsidies u No NTB u No distortions on production n Internationally u Low and single tariff rate, across the board (9%) u National treatment u Automatic import licensing

Dependant on International Trade n + 50% of GDP = x + m n + 75% of GDP = x + m + s n Primary products u Mining u Forestry u Fruits & vegetables u Seafood

Small Country n Chile = 0. 3% of international trade n Rules and disciplines: u Goods: tariff, NTB, customs, safeguards, A/D and CVD, TBT, SPS, etc. u Services: all sectors u Intellectual property rights u Paste/composite: investment, competition, transparency, business visas, etc.

Candid Country n Islander mind: formal, shy, inward looking, etc. n Legalistic culture n We do not do tricks

Chilean Integration to the World n Unilateral openness n Multilateralism n Bilateralism

Unilateral Openness (UO) n Elimination of non-tariff barriers n Lowered tariff (today 9%) n Open to foreign investment

Multilateralism n GATT (founding member) u Tokyo Round: 35% bound tariff u Uruguay Round: 25% bound tariff, TRIMS, TRIPS and GATS n n WTO FTAA (2005) APEC (2010) OECD (observer)

Bilateralism: conditions n Comprehensiveness n Beyond WTO n High standards in disciplines n No exceptions in goods u Distorted products: a. i. Oil and Coffee

Bilateralism: types of FTAs n n 1 st gener. = some 2 nd gener. = most 3 rd gener. = most + some rules FTA = goods, services, investment, IPR, rules & disciplines Economic Complementation Agreement (LAIA) GATT Art. XXIV GATS Art. V

Bilateralism: Chilean FTAs n FTA: Canada - Mexico - C. America - Venezuela - Colombia - Ecuador - Bolivia - Peru - Mercosur n Current negotiations: UE - Korea EFTA - NZ/Singapore (observer) U. S. /Singapore (informed) n Perhaps!: U. S. - Australia - NZ Singapore - India - Japan

Chilean Trade vis-a-vis FTAs

FTA Chile-Korea n n n September 1999 (Auckland) negotiation are announced. Three formal meetings: Dec 1999, March and May 2000 Terms of reference: u Comprehensiveness u Maximum/total liberalization u Transparency (negotiation and implementation) u Meetings: Alternatives venues (other) and frequency u English

Interest of Chile I n Market access u Mining u Forestry u Fruits & vegetables u Seafood n Good business for both (complimentary ec. ) n Disciplines

Interest of Chile II n Korean investment n Systemic interest (International arquitecture) n APEC n International trend after Seattle n Reinforce free trader image

Next year situation in Chile n Bilateral negotiations: u European Union u EFTA u Mercosur u Colombia? u U. S. ? u P-5 or P-3? n n Plurilateral negotiation: FTAA Multilateral negotiation: WTO round

Present situation n Waiting for Korean response n Possible next meeting Dec. 12 -15 Seoul. n “Loosing face”: diminishing support because of the delay. n Ergo: a deadline is needed (31. March. 01)

“Partners” “Dancing together” Chile Korea