EXPERIENCES OF LATIN AMERICAN COUNTRIES WITHIN THE APEC

EXPERIENCES OF LATIN AMERICAN COUNTRIES WITHIN THE APEC REGION: THE CASE OF CHILE HERNAN GUTIERREZ B. Director Economic and Trade Department Embassy of Chile – Seoul 1

Strategic Orientation · Economic growth and equal opportunities · Open & competitive economy, committed to free trade · Enforcement of international regulations · Trade policy consistent with sound macro-economic policies · Investment promotion and protection · Agreements to avoid double-taxation · Institutional innovation 2

Building Blocks of Chilean Foreign Trade Policy § Open economy Free flows of goods, S & I § Dependent on inter. trade More trade § Small country Rules & disciplines § Transparent/non corrupted Disciplines World Wide WTO+ FTA 3

A Three Tier Global Player § Multilateralism (WTO) § Regionalism Ø Geographic: APEC, FTAA, LAIA, Mercosur, Andean Community Ø Issues: Cairns, G-20, FAN, FOF, etc. § Bilateralism 4

Chilean Network of PTAs FTAs Canada Mexico Central America (5) EU (25) Korea USA EFTA (4) • N. Z. , Singapore & Brunei D. • India • China • Peru • Panama Negotiated Negotiating Studies • Ecuador • Turkey ECAs Venezuela Colombia Ecuador Bolivia Mercosur (4) • Colombia • Japan • Bolivia • Thailand • Malaysia 5

18 Trade Agreements 54 countries More than 80% of trade

Objectives • Commercial – – Trade creation & reduction of trade diversion Elimination of tariff peaks Exports promotion Enhancement of competition • Economic – Rules & disciplines – Reduction of external economic vulnerability – Promotion of FDI • Political – Dispute settlement – Differentiation in a context of international economic turbulence 7

Coverage ü Goods – Tariffs – NTM – Customs procedures – Rules of origin ü Services ü Investment ü Temporary entry ü Disciplines – – Safeguards (Bi-Global) AD/CVD TBT/SPS Competition ü Institutional Matters - Transparency - Objectives, excep. , final provisions, etc. ü DSM ü “Non trade issues” - Intellectual Property Rights - Labor - Environment 8

Impact of FTAs on the Chilean Economy · Trade Ø Economic theory supports FTAs with big and stable economies Ø New Strategic Partnership of like-minded countries Ø Static & dynamic efficiency in resource allocation Ø C-A dynamic: Ø elimination of tariff escalations Ø diversification of exports Ø Competitiveness: Ø Lower cost of intermediate goods and of capital goods Ø economies of scale and of scope Ø quality and learning process Ø technological innovation, entrepreneurial spirit & strategic alliances 9

Impact of FTAs on the Chilean Economy · Investment and financial flows Ø Attraction of FDI Ø Deepening of financial markets · Macroeconomic Regime Ø Stability, favorable for growth 10

Market Access · · · Comprehensive FTA, no exceptions Consolidation of GSPs Elimination of tariff escalation Stand-still and liberalizing reviews Commitment to the non application of subsidies in agricultural exports 11

Comparative Analysis of Market Access in 3 FTAs 12

Custom Procedures · Transparency and efficiency: · Commitment to publish laws and norms · Guarantee justice in procedures · Simplified procedures for the liberation of goods · Facilitation of cargo transit for express delivery · Use of risk analysis in procedures for surveillance and automation of customs procedures. · Use of early resolutions at the origin, tariff classification and customs valuation 13

Services 1. Trans-border trade & Local presence 2. Regulatory transparency 3. Negative list approach 4. Promotion of MRs of professional services 5. Link with chapters on investments, telecommunications, temporary entry of business people and telecommunications 14

Investments · Transparency · Predictability · Judiciary certainty · NT & MFN · Norms to protect the foreign investor Ø Minimum level of treatment, in accordance to international law Ø Right to free transfer related to investment Ø Compensation in case of direct or indirect expropriation Ø Specific dispute settlement system between the investor and the State that receives the investment 15

Public Procurement • NT • Non-discrimination and transparent procedures • Tendering and results adequately publicized • Standardized time frames for bids • Standardized rules for bidding processes • Right to request a judicial authority in case of any violation of the former principles 16

Labor · Commitment with domestic legislation · Core labor standards, defined by IOL: Ø Free trade unions Ø Collective negotiations Ø Forced labor Ø Child labor Ø Acceptable working conditions: minimum wages, maximum hours of work, security and occupational health 17

Intellectual Property Rights · Brands · Geographic indications · Dominion names and brands · Author rights · Balance between authors, artists and producers 18

Dispute Settlement 1. Rules of procedures with defined stages and time frames 2. Agreement between the parties is favored (stage of consultations as well as in the stage of implementation) 3. Panel of independent specialist 4. High standards of opening and transparency in dispute settlement panels 1. Public and open hearings 2. Public access to the legal presentation of parties 3. Rights of third party interested in presenting their viewpoints 19