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Chile is a very active partner on the international scene, in both political and economical terms. This situation has been acknowledged by governments, internationally specialized magazines and financial institutions. For further details: Chilean socio-economic situation. The document provides useful information for business people interested in operating, from Chile, in the North and Latin American markets, as well as in the Pacific Basin area.
In Chile, environmental awareness is a relatively new topic, but it has rapidly gained a priority place on the political and social agenda. Chile is in the process of reorganizing and improving its environmental legislation and designing policies to resolve and prevent problems and preserve its natural heritage in harmony with the necessities of development. Chile is a signatory to, and particularly active in, regional and world initiatives to protect the environment, including the environmental protection mechanisms of the Antarctic Treaty System, the Montreal Protocol on Protection of the Ozone Layer and the conventions on Global Warming and Biodiversity.
Chile has become an attractive location for investors interested in South America. The flow of foreign capital coming into Chile is one of the highest in the developing world for an economy its size. In 1997, total foreign investment came to more than US$5.0 billion. In 1997, the flow of U.S.-sourced investment in Chile totaled $913 million. Spain was the primary foreign investor in 1997, investing some $1.5 billion, and Canada occupied the third position with $679 million. Chile has signed investment protection agreements with Argentina, Belgium, Bolivia, Brazil, China, Croatia, the Czech Republic, Denmark, Ecuador, Finland, France, Germany, Italy, Malaysia, Norway, Portugal, Spain, Sweden, Switzerland and Venezuela. Chilean investment abroad has increased dramatically in the last few years. According to official statistics, the total recorded flow of investment abroad in 1997 was $2.3 billion, and total flows for the five years through 1997 were $6 billion. Investments can be found in banking, insurance, pension funds, telecommunications, power distribution, paper and printing production, supermarkets and computer services.
Chile has become an attractive location for investors interested in South America. The flow of foreign capital coming into Chile is one of the highest in the developing world for an economy its size. The top investors in Chile for the period 1974-1997 were: the United States (37.2%), Spain (10.8%), Canada (15.1%), Great Britain (5.1%), South Africa (3.8%), Australia (3.4%) Japan (3.2%) and Holland (3.0%).
Inward flows of $1.8 billion into Chile 1994, saw a sharp upswing largely shaped by privatisation programmes open to foreign investors.
In 1997, total foreign investment came to more than US$5.0 billion. In 1997, the flow of U.S.-sourced investment in Chile totaled $913 million. Spain was the primary foreign investor in 1997, investing some $1.5 billion, and Canada occupied the third position with $679 million. Other major foreign investors in Chile include (in order of importance) the United Kingdom, South Africa, Australia, Japan, and Holland.
The main trading partners are the United States (which takes 22% of exports and provides 20% of imports), Japan (9 and 10 percent), Germany (10 and 8 percent), and Brazil (7 and 8 percent).
Chile has signed investment protection agreements with Argentina, Belgium, Bolivia, Brazil, China, Croatia, the Czech Republic, Denmark, Ecuador, Finland, France, Germany, Italy, Malaysia, Norway, Portugal, Spain, Sweden, Switzerland and Venezuela. An additional 15 such agreements are under negotiation.
The internationalization of the economy has also sparked investments by Chileans abroad. The Foreign Investment Committee reports that between 1990 and 1996, the outflow of Chilean capital totaled almost US$12 billion. More than 85% of those investments were in Latin America. Most of this local capital goes to Argentina and, to a lesser extent, Peru and Brazil.
Chilean investment abroad has increased dramatically in the last few years. According to official statistics, the total recorded flow of investment abroad in 1997 was $2.3 billion, and total flows for the five years through 1997 were $6 billion. The Santiago Chamber of Commerce, however, estimates that investment abroad by Chileans in 1997 alone totaled $5 billion.
Investments can be found in banking, insurance, pension funds, telecommunications, power distribution, paper and printing production, supermarkets and computer services. In addition, Chile exports the managerial expertise and know-how developed by its business community.