Doing Business 211South Korea are second, third and fourth in terms of export
markets. This strategy of promoting exports across the
globe lessens Chilean dependence on one trading partner.
Recognising the undeniable importance of free trade, Chile
has entered into a large number of free trade agreements.
Chile signed a free trade agreement with MERCOSUR, the
South American Customs Union comprised of Argentina,
Brazil, Paraguay and Uruguay. It also signed separate free
trade agreements with Canada, Mexico, Colombia, Venezuela,
Ecuador, Peru, Bolivia, some Central American countries and
the European Union. After long negotiations, Chile has a free
trade agreement with the United States. In Asia, Chile has free
trade agreements with China, South Korea, Singapore and
Japan and is in negotiations with India. Chile is a member
of APEC (Asia-Pacific Economic Cooperation) and PECC
(Pacific Economic Cooperation Council). For those countries
that do not have a free trade agreement with Chile there is a
uniform tariff rate of 6 per cent on all imported items.
Exports
A large part of Chile’s success can be attributed to the
diversification of its exports. At one point, copper sales
made up 80 per cent of the country’s exports. That figure
has dropped to 45 per cent in 2005. Chile has turned to
the strengths of its distinct regions, each of which makes a
significant contribution to the Chilean economy. The north