More information about Chile:

Chile is one of the strongest trading partners and export markets for U.S. companies in South America, largely due to its open market policies, zero tariffs, democratic government, solid business practices, and low corruption.

As the world’s largest copper exporter, second largest lithium exporter, and a top agricultural exporter, Chile’s economy is driven by commodity exports and economic growth is closely linked to the price of copper.

The United States - Chile Free Trade Agreement (FTA), implemented in 2004, is the foundation for the commercial relationship and permits all U.S.-origin products to enter Chile tariff free. In 2019, U.S. exports of goods totaled $15.7 billion, or more than four times the pre-FTA figures while bilateral trade in goods between the two countries totaled $26 billion.

Chile is the 20th largest goods trading partner for the U.S., while the U.S. is Chile’s second largest trading partner and second largest foreign investor. Due to increased demand for the country’s top exports, Chile is expected to lead the region out of recession with an estimated growth rate of 5 percent in 2021 and the government has released a $34 billion stimulus plan focused on infrastructure. At the same time, Chile is on pace to deploy the first national 5G network in the region and will finalize plans to construct a submarine fiberoptic cable connecting the country with Australia.

Despite a historic economic downturn in 2020, Chile is projected to lead the region out of recession in 2021 with an estimated economic growth rate of 5 percent driven by increased demand for its key exports – copper and lithium.

Chile released a $34 billion public investment to stimulate recovery through 2022. Target sectors include transportation, water, digital, social, and healthcare infrastructure.

• Environment and Water Technology - Chile is planning to invest $250 million annually in water projects to improve water management in midst of a decade long historic draught. Mining companies are investing in desalination, clean energy, and other environmental technologies to make the operations more resource efficient.
• Agribusiness - The current market for specialized and energy efficient agricultural machinery and equipment is a best prospect since it reduces labor, saves energy, and subsequently lowers production cost. The industry trend is to mechanize agriculture processes such as harvesting, and to use other labor replacement machinery and equipment, which are in high demand by Chilean farmers. Chile must reduce production costs to remain competitive in the international market, of which it is an important food supplier.
• Healthcare - Chile’s annual healthcare expenditure is approximately 5 percent of GDP. Public healthcare expenses are expected to reach $13 billion by the end of 2020. The pandemic has also led to a rapid increase in the utilization of telemedicine from less than 1 percent pre-pandemic to an estimated 25 percent in 2020. In addition, many patients have delayed routine medical care, which healthcare officials expect to cause an increase in demand for health services in the second half of 2020 and 2021.
• 5G and Telecommunications - In May 2020, President Sebastian Pinera announced an ambitious telecommunications program to be implemented before the end of his Presidential term in March 2022. The program includes the first nationwide 5G network in Latin America, a subsea fiber optic cable to connect South America and Australia, and a new satellite network. The implementation of 5G will require an estimated investment of $3 billion over the next 5 years.