20/04/23 Presentation title

UNCLASSIFIED1

JOLANTA POLKCOMMERCIAL OFFICER CHILE

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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 17.1 millionGreater Santiago 6 millionPopulation growth rate 1.1%Workforce 6.8 millionLiteracy rate 95.7%Life expectancy 79 yearsInflation rate 2012* 2.5% Unemployment ** 6.7%GDP 2011 USD 248bnGDP growth 2011 6.0%GDP growth estimate 2012 4.5-5%GDP per capita 2011 (PPP) USD 17,125  * 12 monthly in June 2012 ** July 2012

Sources: INE, Banco Central de Chile, IMF, Economist Intelligence Unit, World Bank, UN

Chile: Facts & Figures Total population 17.1 millionGreater Santiago 6 millionPopulation growth rate 1.1%Workforce 6.8 millionLiteracy rate 95.7%Life expectancy 79 yearsInflation rate 2012* 2.5% Unemployment ** 6.7%GDP 2011 USD 248bnGDP growth 2011 6.0%GDP growth estimate 2012 4.5-5%GDP per capita 2011 (PPP) 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

• Tourism

• Mining

• Astronomy

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Central Chile

• Metropolitan region

• Vineyards

• Agriculture

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Southern Chile

• Tourism

• Forestry/Fisheries • Sheep and Cattle ranching

•

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Economy - highlights

• Population: 17mn (2012 est.) – 60th in the world

• GDP: $248bn (2011) – 45th in world (5th largest in SA)

• GDP per capita: $17,125 (2011) – 52nd in world • Growth since 1990 averaging 5% pa

2010 - 6.1% 2011 - 6% 2012 - 5%?

• Aspires to be a developed country by 2020

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How?

• Trade in goods and services – 73% of GDP

• Low inflation – Central Bank target of 3%

• Ease of doing business ranking: 39th out of 183 • Free trade – world’s largest network of FTAs

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UK-Chile connections

• UK exports of goods and services have increased five-fold since 2003

• Chief exports from UK – crude oil, road vehicles, pharmaceuticals, industrial machinery and beverages

• Chief imports from Chile - Fruit and vegetables, wine and meat products

• 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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Different ways to become a professional:

- on the job training – popular amidst the lower-earning bracket of population (often uncertified but skilled in the job)

- 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)

- Technical, post-secondary institutes (usually 1 – 2 years in duration) – varied quality and often uncertified

- Universities – especially two technical universities – Duoc and Inacap

TVET IN CHILE

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Kinds of Schools

Schools Students

Total % Total %

Municipal 430 45.5% 93.199 45.6%

Private Subsidised 445 47.0% 86.664 42.4%

Private 69 7.5% 24.442 12.0%

Total 944 100.0% 204.305 100.0%

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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

University 60 6.714 587.297

Total 177 16.510 940.164

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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, Anglo-American, 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 yearsNew 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:EnergyTourism Mining Skilled labour such as carpentry, mechanics, IT etcEnglish for professionals -Agriculture – Chile to become food power by 2020-Medicine, banking, law-Tourism -Mining and energy-Technology