British businesses have greater access to high growth markets than ever before, but it still remains a challenge to begin exporting. Where to go and how to start?
Britcham Chile Services participated in UKTI´s ExploreExport week in London on the 6th to 13th of November. ExploreExport gathers more than 67 high growth markets in one place for businesses to meet and greet and more importantly give you the opportunity to ask any export questions which you have in mind.
Why export to Chile? Because access to Chile means easy access to the rest of Latin America. Do you want to export to a market of 588m people with a GDP of US$4.65 trillion? That is the size of Latin America and here is why Chile is the easy option:
According to the FCO, Chile scores highly in terms of like-mindedness when conducting business with the UK as well as in growth potential, per capita wealth and business environment. It is open to trade and investment, meaning great opportunities for UK companies.
Chile’s greatest strengths lie in:
- The wealth of its population: Chile has one of the highest GDP per capita in the region.
- Its competitiveness relative to other countries in the region.
- Reduced trade barriers leading to Chilean exports and imports rising significantly
- Tax on goods imported from the UK is zero, as part of a double tax treaty. Chile has 47 international trade agreements and is a great stepping stone into the rest of the continent.
- Corruption is rated the lowest in the region. It is easy to do business in Chile. It is stable, rules-based and secure.
Apart from the quantitative facts that make conducting business in Chile easy, the one thing that is a huge advantage for British companies from the very start is that Chileans love the British brand. Chileans are anglophiles and associate the brand “Britain” with quality and prestige. This is evident with the British brands such as Topshop, Twinning Tea and Waitrose who are enjoying a lot of success in Chile.
Besides retail, Chileans are increasingly seeking to optimise productivity and existing services and products. Therefore, any British companies dealing in such services would be most welcomed by the Chileans.
Some of Chile´s key sectors
• Agribusiness – Agribusiness is Chile’s largest economic sector after mining, accounting for 10% of GDP and 29% of exports.
• IT - Chile has one of the strongest ICT industries in terms of growth in the entire region: for the past five years it’s growth statistics have always been higher than the Latin American average.
• Retail - In 2014, Chile was named the second best emerging market in the world for retail opportunities.
• Health - The government plans US$2.2billion investment to build and equip six new hospitals and repair, expand and modernise 56 older public hospitals.
• Construction – Sector in general shows strong performance especially with a growing demand in sustainable construction.
• Water – the provision of drinking and industrial water, the treatment of wastewater and effluents and water efficiencies are of key importance in several industries.