For a long time, Chile has been attractive for companies that are investing for the first time in Latin America, since they appreciate its political and economic stability as well as the transparency of its business sphere. However, investors are increasingly taking this learning process approach a step forward and using Chile, not only to gain experience in the region, but as a base from which supply other markets.
Chile's Free Trade Agreements have been the keystone to encourage companies to adopt this approach, owing to these agreements, companies in Chile are currently enjoying a privileged and, in many cases, zero-tariff access to a market of more than a billion consumers worldwide. As a response to this opportunity, an increasingly higher number of companies are using their facilities in Chile to export to other markets throughout the region and the rest of the world.
Lowering tax barriers to promote investment from and into Chile.
'Commodity Chains' are a new challenge to the trade policy of Chile aimed at achieving a better use of commercial opportunities generated by a network of trade agreements subscribed by our country. The subscription of these agreements has created significant competitive advantages, allowing Chilean exports a preferential access to a market of more than 55 countries (accounting for 85 percent of world's GDP and approximately 4,000 million of inhabitants representing almost 90 percent of the destination of our exports.
It deals with the chaining of goods and services with third countries, which going through a minimum process of transformation in Chile, are later exported to the markets that Chile enjoys the mentioned benefits with. This initiative, gains higher relevance in markets such as the Asian, whose high tariffs Chile is free from, owing to the signed trade agreements providing the country with a significant competitive advantage.
The project suggests that entrepreneurs from third countries, from now on 'partners', join Chile in a process of productive complementation to export to markets designated from now on 'destination', where Chile enjoys a preferential access. Several advantages originate from a project of this kind, to mention some of them, the volume of exports of our countries will increase and the existing commercial relations between our entrepreneurs will strengthen. All things considered, it is not only a matter of selling products from one country to another, but to approach the world together.
In this context, a survey aimed at detecting, in a first stage, potential products for possible productive chains has been carried out taking as base the following countries: