Chile

Overview

• Chile is a small, dynamic trading partner located on the western coast of South America.
• Trade is competitive, but regulations are transparent and easy to navigate.
• Many major airlines serve Santiago, Chile's largest import market.
  • Inland air transportation is abundant.
• Chile's Pacific Ocean ports are easily accessible for US exporters.
  • The largest port, Valparaiso, is 130 miles from Santiago.
• Chile's credit rating is high and economic growth has been consistent.
• Stable political climate and excellent relations with U.S. government
• Chile is a member of APEC and Mercosur.
• Chile has trade agreements with Canada and Mexico.
• Trade agreement with the U.S. is nearing.

Opportunities

• Agricultural Products: Wheat, Coarse Grains
• Computers and Related Equipment
• Food Processing Equipment
• Franchise Starts
• Medical Equipment
• Pollution Control Equipment
• Port Equipment
• Telecommunications Equipment
• Travel and Tourism

Market Tips

• Financing is readily available in Chile for US export clients.
• Santiago represents 80% of the Chilean market.
  • Difficult to reach other parts of Chile.
• Retail goods available via supermarket or market storefronts.
• Excellent Telecommunication infrastructure.
• Pan American Highway is busy; many roadways in poor condition
• Opening a branch or subsidiary operation improves market penetration and business networking.

Business Culture

• Conservative dress in business--no flashy colors, sports jackets, or lapel decorations.
• Women in business wear suits and heels.
• Chileans stand closer than Americans when communicating--try not to back away.
• Be careful with hand gestures.
  • Some American gestures are not appropriate and even obscene in Chilean culture.
• Print business cards in English on one side and Spanish on the other and present them to business contacts.
• Punctuality at meetings is important--but don't make an issue of someone else's tardiness.
• Shake hands when greeting business contacts.
• Avoid the hard sell.
• Be prompt when answering business correspondence.
• Customer support and service are very important.

Legal Environment

• Chilean law is based on Spanish code and not common law.
  • Previous court rulings not considered (no case law).
• Criminal code specifies presumption of guilt, not innocence.
• Legal reform is anticipated
• Important to have a qualified local attorney review all business contracts.