USA-Chile Business Environment• USA-Chile Free Trade Agreement. – Currently no duties on 90% of US exports to Chile. – All duties eliminated by 2015.• US exports to Chile reached $10bn in 2010, more than any other country.• President Sebastian Piñera continues to promote a liberal market economy.
Utah Exports to Chile 2000-2010• Utah exports to Chile more than tripled between 2000 and 2010. $35 $30 $25 Millions of USD $20 $15 $10 $5 $0 Adapted from Trade Stats Express
Chilean Mining Opportunities• Chile is the largest copper producer in the world. – Annual production is expected to increase to 7.3mn metric tons by 2020 (5.4mn metric tons in 2009). 8.0 7.5Millions of Metric Tons 7.0 7.4 6.5 Adapted from the Chilean 6.0 Ministry of Mining and the US 5.5 Commercial Service 5.33 5.46 5.0 4.5 4.0 2005 2010 2020
Mining Supplier Opportunities• Mining investment in Chile is growing rapidly. – Thus, demand for related products and services is increasing.• The USA is the largest mining equipment supplier to Chile.• Utah currently exports considerable amounts of machinery to Chile. – In 2010, Utah exported $12mn worth of non-electrical machinery to Chile.
Various Utah Exports to Chile Machinery, Except Electrical - $12.5 million30.3% 40.2% Chemicals - $4.1 million Transportation Equipment - $2.5 million7.9% Computer & Electronics Products - $2.5 million 8.2% 13.3% All Other - $9.4 million Adapted from Trade Stats Express
Mining Supplier Opportunities• Sub-Sector Prospects include: – Equipment that requires regular replacement, • Equipment: grinders, off-road trucks, cabbed truck chassis, parts for rock cutters, excavators, cranes and screening machines. • Environmental system solutions: water treatment, water desalination, air pollution abatement, mine closure, carbon footprint reduction. • Underground mining technology services and wear- resistant materials.