Introduction
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The Chilean economy shares much in common with Australia, including its openness and strong agriculture and resources sectors. Geographic and economic similarities, coupled with a strong record of growth, offer considerable potential for Australian and Chilean companies to build successful trade and investment relationships.

In 2005, Australian-bound exports of Chilean exports of goods and reached a total of US$ 94.8 million, representing a 7.4% decrease from the year before.

Australia currently occupies 29th position in terms of Chilean trade partners, and 36th position in regards to the destination of our exports, receiving 0.3% of total Chilean exports, and 0.7% of non traditional consignments. In terms of origins of our imports, Australia occupies position 25.

Chile has traditionally experienced a trade deficit with the oceanic nation, both in goods, and services. Primarily this stems from the Chilean consumption of products which complement our energy needs, such as coal for our thermoelectric plants and iron and steel industry; capital goods for the manufacturing industry and the extraction of minerals in Chile. Only in 2003 was this tendency reversed.

When considering the total exchange in trade for 2005, a 8% increase is observed with respect to 2004. This is primarily due to a 7% increase in Chilean exports to Australia.

(US$ Millions)

2000

2001

2002

2003

2004

2005
Change 2005/2004

Exports

47.3

41.2

60.2

97.3

88.3

94.8
7.4

Imports

108.6

86.1

97.2

86.2

137.8

139.5
1.2

Trade balance

-61.3

-45.0

-37.0

11.1

-49.5

-44.7
-9.7

Commercial Exchange

156.0

127.3

157.4

183.5

226.1

234.3
8.6
Source: ProChile and Central Bank of Chile

It is likely that Chilean exports will maintain a sustained growth in the Australian market, led by the forestry, agroindustrial foodstuffs and processed seafood. Tourist services is another important area of expansion, judging from the recent observed growth in the number of Australian tourists traveling to Chile. Besides, a glimpse at the maritime services between Chile and Australia further serves to emphasize this growth.

Solving this problem is now our primary challenge, and as such, advantage should be taken of large volumes of bulk cargos exported to Australia by companies including Celulosa Arauco, Forestal Arauco, Codelco, Denasa and Dyno Nobel (Tec Harseim). Such activity could provide a cargo base for the development of a regular service between the two nations, given that current methods rely on charter.

Further and updated information can be found in ProChile or you may contact directly our Trade Commissioner, in Sydney.



Australia Chile Chamber of Commerce

Have a look to the new Newsletter of the Australia-Chile Chamber of Commerce, in Sydney. Click here. To contact a representative of the Chamber, you may send an email.




Have a look at the latest Australia-Latin America Business Council`s Newsletter. Click here.

 

Last updated: March 31, 2006

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