Latin America & the Caribbean
Opportunities for UK companies
Chile
Chile, an open partner to the UK, is one of only two OECD member countries in Latin America and the Caribbean and has the highest Gross Domestic Product (GDP) per capita in the South America[1].
Chile is an ideal place to develop and explore new opportunities thanks to its natural resources and demand for innovative solutions. The Chilean people are amongst the most educated in the region with a skilled workforce[2].They are keen followers of global trends and consider themselves at the forefront of innovation in the region. COVID has had an impact. The IMF forecasts the economy contracted by 6.0% in 2020[3]. A series of rescue plans and financial stimulus packages have been launched in Chile.
Market Detail
Chile is the fifth largest economy in Latin America and the Caribbean and is a key player in regional and international collaborative initiatives, having signed 30 Free Trade Agreements covering 65 economies[4]. This gives them preferential market access to more than 4 billion consumers. In 2019, Chile was the UK’s third largest trading partner in LatAC[5],after Brazil and Mexico[6]. Chile is also a founding member of the Pacific Alliance and CPTPP, making it an ideal launch pad for the whole region. Chile is ranked the highest in South America for ease of doing business[7] due to its political and economic stability. It ranks 25th globally in Transparency International’s Corruption Perception Index as the 2nd least corrupt country in Latin America[8].
UK companies exporting to Chile will find:
- Low levels of political, economic and legal risk[9]
- An easy legal and tax framework with a current Double Taxation Treaty and
- A strong association with British products, and a notable cultural alignment with the UK.
- Excellent relations with the UK – Chile was the first country in the world with which the UK signed a trade continuity agreement which entered into force in January 2021, guaranteeing a level playing field with EU competitors.
Opportunities in Chile for UK companies:
- Chilean companies are keen on solutions that are clean, innovative, and improve efficiency in the following sectors:
- Sustainable energy - Production and Storage
- Electromobility (including hydrogen fuelled vehicles)
- Mining (Copper and Lithium projects, cybersecurity, insurance and green mining)
- Agritech/Aquatech
- Life Sciences/Healthcare/Energy
- Infrastructure (US$24bn Infrastructure Fund, Digital Infrastructure, water management, 2023 Pan-American Games)
- Financial Services including Green Finance
- Food and Drink
- Technology
- Creative Industries
- Defence and Security
[2] World Bank, What are the main lessons from the latest results from PISA 2018 for Latin America?, 6/12/2019 [LINK] “Chile and Uruguay continue to lead the ranking as the best education systems in Latin America, but their performance is on average two years behind of OECD students”
[5] Based on HMTC definition, excluding DIT overseas territories. Source: ONS UK Total Trade