CHILE – THAILAND FREE TRADE AGREEMENT Diego Torres Diez Head Asia and Oceania Department General Directorate for International Economic Affairs April, 2016
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CHILE ndash THAILAND FREE TRADE AGREEMENT
Diego Torres Diez
Head Asia and Oceania Department
General Directorate for International Economic Affairs
April 2016
1 CHILE`S TRADE POLICY
Chile is relative small and open economy open to free trade through the implementation of a trade policy based on the negotiations of trade agreements For the past 35 to 40 years this strategy has allowed Chile to position itacutes products in important and highly competitive markets around the world Thee fundamental pillars
Unilateral reduction of tariffs
Bilateral negotiations of Trade Agreements
Multilateral integration through WTO OCDE and APEC
CHILEacuteS TRADE POLICY
3
EFFECTIVE TARIFF AND EXPORTS (MM US$ and PERCENTAGE)
4 () Exports 2003-2015 calculated with the average copper price 1987 ndash 2003 = 0965 US$Lb () Weighted average imports tariff
Source Studies Department DIRECON-PROCHILE based on data from Central Bank of Chile UNCTAD and Santiago Chamber of Commerce
0
5
10
15
20
25
30
35
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
1970
1973
1976
1979
1982
1985
1988
1991
1994
1997
2000
2003
2006
2009
2012
2015
EXPORTS
EXPORTS
NON COPPER EXPORTS
29 (MFN 6)
IMPORT TARIFF
09 (MFN 6)
UNILATERAL TARIFF REDUCTION
ACE MERCOSUR
AAE EU
FTA KOREA
FTA USA
FTA CHINA
FTA JAPOacuteN
326 (MFN 220)
62 (MFN 10)
155 (MFN 35)
123 (MFN 20)
95 (MFN 15)
92 (MFN 11)
FTA AUSTRALIA
FTA MALASIA
FTA THAILAND FTA
VIETNAM y HONG KONG
10 (MFN 6)
CHILE ndash FTA NETWORK
5
THAILAND
HONG KONG
VIETNAM
MALAYSIA
TURKEY
ECUADOR
AUSTRALIA
PERU
CUBA
PANAMA
JAPAN
INDIA
P-4
CHINA
EFTA
SOUTH KOREA
UNITED STATES
EUROPEAN UNION
CENTRAL AMERICA
MEXICO
CANADA
MERCOSUR
VENEZUELA
COLOMBIA
BOLIVIA
INDONESIA
THE PHILIPPINES
25 Trade
Agreements with
64 ECONOMIES
AGREEMENTS IN FORCE
AGREEMENTS UNDER NEGOTIATION
639 OF WORLD POPULATION
877 OF WORLD GDP
6
2 THE ROAD TAKEN IN ASIA
7
Source Studies Department DIRECON-PROCHILE based on data of Central Bank of Chile
2003 US$ 68 billion 2015 US$ 32 billion
TRADE FIGURES EXPORTS BY COUNTRY IN ASIA (MILLIONS US$)
53
17
13
6
5 6
28
35
16
3
9 9
China
Japan
South Korea
India
Taipei China
Other
1909 2425 1080 209 602 56
16671
5458 4132
2004 1484 336
China Japan South Korea India Taipei China Thailand
2003
2015
8
Source Studies Department DIRECON-PROCHILE based on data of Central Bank of Chile
2003 US$ 38 billion 2015 US$ 23 billion
TRADE FIGURES IMPORTS BY COUNTRY IN ASIA (MILLIONS US$)
44
19
14
3
2
18
China
Japan
South Korea
Thailand
India
Other
66 9
9
3
3 10
1642 707 537 109 100 255
14800
2105 1996 735 720 358
China Japan South Korea Thailand India Taipei China
2003
2015
9
Countryperiod
1974-2009 2010 2011 2012 2013 2014 2015 Total
Japan 2817956 340616 1484690 2534160 2524905 593076 184296 10479699
Australia 3522512 100846 119451 151898 561594 134533 17949 4608783
China 84620 376 9754 9187 12336 420 184186 300879
South Korea 40371 - 158380 - 14920 16769 - 230440
New Zealand 158791 - - - - - - 158791
India 27107 - - - - - - 27107
Malaysia 22923 - - - - - - 22923
Taiwan 10578 555 2973 - - - - 14106
Singapore 4352 - - - - - - 4352
Asia Pacific Total
6689210 442393 1775248 2695245 3113755 744798 386431 15847080
ASIA PACIFIC FDI IN CHILE (US$ Thousands)
Source Studies Department DIRECON-PROCHILE base on data of Foreign Investment Promotion Agency january-september 2015
3 CHILE ndash THAILAND TRADE
11
CHILE ndash THAILAND BILATERAL TRADE
NUMBER OF PRODUCTS
NUMBER OF COMPANIES
95 (2003)
164 (2015) raquo
132 (2003)
263 (2015) raquo
288
795
336
735
-
100
200
300
400
500
600
700
800
900
Exportaciones (FOB) Importaciones (CIF)
US$ MM
2014 2015
Source Studies Department DIRECON-PROCHILE based on data of Central Bank of Chile
SHARE IN CHILEAN IMPORTS
2015
43
6
11
34
20
1
14
5
THAI EXPORTS TO CHILE MAIN PRODUCTS
12
Source Studies Department DIRECON-PROCHILE over data of Global Trade Atlas
MAIN EXPORTS TO CHILE FROM THAILAND
(Thousand US$)
HS CODE DESCRIPTION 2015
870421 Diesel powered trucks 287586
870332 Automobiles with diesel
engine 61701
870322 Automobiles with engine cylinder gt 1000 lt 1500 cc
58667
160414 Fish prepared or preserved 34055
842810 Pas or Freight elevator 9093
390120 Polyethylene gravity of 094 or
more 6083
845020 Washing machines with dry
linen capacity gt 10 kg 6029
841810 Combined refrigerator -
freezers 6015
CHILEAN EXPORTS TO THAILAND MAIN PRODUCTS
13
MAIN CHILEAN EXPORTS TO THAILAND
(Thousand US$)
HS CODE DESCRIPTION 2015
470311 Chemical wood pulp 47699
740311 Copper cathodes 46029
030313 Frozen Atlantic Salmon 28877
310420 Potassium Chloride 16369
030314 Frozen Trout 15326
030312 Frozen Pacific Salmon 9842
440710 Coniferous Wood Sawn Sliced Etc
Over 6 Mm Thick 4624
0080610 Fresh Grapes 4356
Source Studies Department DIRECON-PROCHILE over data of Global Trade Atlas
SHARE IN THAILAND IMPORTS
2015
372
25
622
59
625
192
106
34
14
4 CHILE ndash THAILAND FTA CONTENTS amp OPPORTUNITIES
FTAacuteS TIMELINE amp CONTENTS
Disciplines Negotiated
Trade in Goods
Rules of Origin
Custom Procedures and Cooperation
Sanitary and Phytosanitary Measures
Technical Barriers to Trade
Trade Remedies
Trade in Services
Financial Services
Dispute Settlement
Transparency
raquo Joint Study Group
raquo Negotiations began in April 2011
raquo Total of 6 Rounds of negotiations where held
raquo Negotiations concluded successfully in August 2012
raquo FTA was signed early October 2013
raquo FTA in force since November 5th 2015
CHILEAN EXPORTS TO THAILAND CHANGES SINCE FTA ENTERED INTO FORCE
16
Subsector Jan
2015
Cooper 5163406
Salmon and trout 6779878
Fish oil 64673
Leather and fur industries 139110
Dry fruits and vegetables 0
Mussels 53050
Sparkling wine 0
Jan
2016
17447064
8156678
311745
171978
83090
80000
4560
Tariff under FTA
0
0-5
0
0
0-40
10-15
0
US$ Dif Nov 1514
28053867
1674381
236101
184659
172923
16190
1480
THAI EXPORTS TO CHILE CHANGES SINCE FTA ENTERED INTO FORCE
17
Subsector Jan
2015
Transportation Equipment Manufacturing 29283305
Mechanic machinery equipment 3756793
Electric machinery equipment 673988
Jewelery and goldsmith 199696
Plastic raw materials 0
Jan
2016
40623355
4161988
474726
640271
196210
Tariff under FTA
0
0 -5 antildeos
0
0
0
US$ Dif Nov 1514
5965017
2324327
2159999
740078
275471
18
MARKET ACCES OFFERs UNDER THE FTA
Thailand granted Chile the
elimination of 901 of tariff lines in immediate category
THAI OFFER
CATEGORY PRODUCTS
NT0 (inmmediate) 7383
NT0 (O tariff for quotas WTO)
87
NT1 ( Year 3) 142
NT2 (Year 5) 575
SL (Year 8) 102
Total 8300
CHILEAN OFFER
CATEGORY PRODUCTS
Year 0 6989
Year 3 321
Year 5 298
SL (Year 8) 107
Total 7715
On the other hand Chile granted immediate tariff elimination to 906 of tariff lines
TARIFF
NMF FTA
5 Year 0
10 Year 0
30 Year 0
0 Year 0
30 Year 0 - Year 3
30 Year 0
30 Year 0
5 Year 0
40 0 in 2016
10 Year 5
10 Year 0
5 - 10 Year 0
30 Year 0 - Year 5
30 Year 0 - Year 5
27 Year 0 - Year 5
CHILEAN EXPORTS TO THAILAND POTENTIAL NEW EXPORTS (thousand US$)
19 Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Description
441239 Plywood consisting solely of sheets of wood
250100 Salt pure sodium chlorideampsea water
080830 Pears
710691 Silver in unwrought forms
200799 Jamsfruit jelliesfruitnut pureacuteeamppaste
200290 Tomatoes prepared or preserved
190490 Cerealsin grain form
310230 Ammonium nitrate pack weighg gt 10 kg
080520 Mandarins
200979 Apple juice
080212 Almondsfresh or driedshelled or peeled
190110 Prep of cerealsflourstarch
200870 Peaches preserved
080510 Oranges fresh or dried
150910 Olive oil virgin
Chiles exports to
World
Thailands imports
from world
348825 28662
189179 7021
141149 40326
139243 304920
129069 8503
127035 19816
106145 12496
95225 12932
93902 106357
90919 5120
87070 33113
73026 92985
72334 20709
62333 5988
57921 8231
THAI EXPORTS TO CHILE POTENTIAL NEW EXPORTS (thousand US$)
20
Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Description
400122 Technically specified natural rubber
870333 Automobiles with diesel engine 2500 cc
271012 Light petroleum oils and preparations
730890 Structuresparts of structures
030617 Other frozen shrimps and prawns
Hair shampoos
390760 Polyethylene terephthalate
330590 Hair preparations nes
390410 Polyvinyl chloride
390720 Polyethers nes
761510 Table kitchen or other household articles
850710 Lead-acid electric accumulators
841199 Parts of gas turbines nes
330610 Dentifrices
Thailand`s exports to
world
Chiles imports
from world
2670862 27215
1555558 85799
1376742 402119
851605 168678
624041 32211
422492 67538
383853 93937
346316 80249
276977 71610
250879 45834
226498 28908
207511 77064
193332 38427
183200 36079
TARIFF
NMF FTA
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
THAILAND EXPORTS KEY PRODUCTS (thousand US$)
21
Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Product label Exported
Thailands 2015
847170 Computer data storage units 10943347
870421 Diesel powered trucks 6798984
271019 Petroleum oils and preparations 5427876
100630 Rice semi-milled or wholly milled 4078187
847330 Parts and accessories of automatic data
processg machines 3253436
854231 Electronic integrated circuits as
processors and controllers 2865029
400122 Technically specified natural rubber
(TSNR) 2670862
870899 Motor vehicle parts nes 2666050
870323 Automobiles w reciprocatg piston engine
displacg gt 1500 cc to 3000 cc 2611009
Thailands exports to
Chile
Chiles imports
from world
2 123864
287582 928981
5 3598452
1656 70351
4 53079
- 14139
- 27215
2045 554180
602 1660996
NMF FTA
6 Year 0
6 Year 0
6 Year 0
6 Year 5
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
Chapter on Rules of Origin meets the standards that Chile has negotiated in recent agreements Committees regarding Technical Barriers to Trade (TBT ) and Sanitary and Phytosanitary Measures (SPS) are included Regarding the chapter on services will grant new opportunities in trade in services The inclusion of a chapter on financial services enable financial institutions in Chile and Thailand obtain a non- discriminatory treatment and to establish andor acquire financial institutions in both financial markets The Agreement also includes a Cooperation chapter that will allow closer cooperation relations between the public private and academic spheres in areas of mutual interest Commitment of start negotiation of an investment chapter
22
CHILE ndash THAILAND FTA
23
5 PRODUCTION LINKAGES
A new step forward in Chilean trade policy designed to leverage business opportunities generated by Chilersquos network of trade agreements Consists of business alliances with trading partners for in-country goods production using imported supplies Production linkages involve processing partner-country materials or parts in Chile Finished value-added goods can then be re-exported to countries making use of Chile tariff reductions Rules of origin play a fundamental role in securing tariff reductions
24
WHAT ARE PRODUCTION LINKAGES
FIRST STEP
The material supply or consumable good is imported to the country with preferential treatment
SUMMARY
Production or
assembly in Chile
FTA Final good
Supplies
Preferencia
Arancelaria
Rules of
Origin
FTAs
Tariff
SECOND STEP The production process is carried out in Chile or Thailand in order to comply with the rules of origin of different trade agreements
THRID STEP
The final good is exported (with Chilean of Thai origin) to other markets
EXAMPLE
Chile ndash Thailand Free Trade
Agreement Potential Market of 566 million
consumers
0 Tariff 0 Tariff
PYMEs
Cooperacioacuten
Servicios
Coherencia Regulatoria
Laboral
Defensa Comercial
Medidas Sanitarias y Fitosanitarias Competitividad
Desarrollo
Temas aduaneros Solucioacuten de Controversias
Reglas de Origen
Inversiones
Obstaacuteculos Teacutecnicos al Comercio
Acceso a Mercados Servicios Financieros
Comercio Electroacutenico
Asuntos Legales Administracioacuten Transparencia Anticorrupcioacuten
Excepciones Disposiciones Finales
Medio Ambiente
Propiedad Intelectual
Empresas del Estado
Entrada Temporal
Compras Puacuteblicas
Telecomunicaciones
CONTEXTO Temas Bajo Negociacioacuten
27
6 FINAL REMARKS
The Agreement will allow both countries Establish economic alliances and reciprocal investments
Simplify sanitary and technical regulations
Standardize customs procedures
Faster addressing trade problems through contact points and
Technical Committees
28
MAIN BENEFITS
THANK YOU
Diego Torres Diez
Head Asia and Oceania Department
General Directorate for International Economic Affairs
April 2016
PACIFIC ALLIANCE FIGURES
6th world economy (28 world GDP)
35 population of LAC (216 millions)
527 Latin American exports
37 GDP and 31 FDI of LAC
Source IMF (World Economic Outlook octubre 2014) y World Factbook-CIA World Investment Report 2014 -UNCTAD Trademap () 2013
ACHIEVEMENTS
Framework Agreement
First Additional Protocol to the Framework Agreement
Aditional dispositions on e-commerce amp telecommunications
Intellectual property projects
Consolidation of MILA biggest Latinamerica stock market
Joint Events on Export Promotion
Visa acilities for business people staying over 180 days
Visa tourist exemption
Student Grants
Joint Cooperation Fund of the Pacific Alliance
Inter-institutional Agreement on pharmaceuticals products
Cooperation Agreement in Tourism
Joint Diplomatic and Trade Offices
Migratory Exchange of Information XX032014
Oficina Comercial
ADDITIONAL PROTOCOL
Tariffs elimination bull 100 Tariffs elimination bull 92 immediately once entry into force bull 8 short and medium term (between 3 and 17 years)
Rules of origin Flexibility single rule and accumulation through PA member in order to the commercial integration
Trade facilitation Electronic Certification of Origin Interoperability of the single window Custom Cooperation Authorized Economic Operator
Sanitary and Phytosanitary Measures Increase transparency in the application of sanitary and phytosanitary measures and strengthen the use of science-based
Technical Barriers to Trade Increase transparency and the regulatory cooperation among other matters
Comprehensive Chapters in Services and Investment
Cross-Border Trade in Services and Investment Protect cross border trade in services the investors and their investments in the countries of the Pacific Alliance Telecomunications Ensure of telecommunications services in the region of the Pacific Alliance under free competition particularly in relation to the dominant suppliers E-Commerce Electronic transactions of goods and services shall be regulated including digital products to ensure their safety and efficiency Maritime Services Grant a non-discriminatory treatment to ships from PA countries in its ports the recognition of the documentation of vessels and crew among others Financial Services Grant legal certainty for investors and service providers from the four countries in the financial sector consolidating the laws of each country
ADDITIONAL PROTOCOL
Government Procurement Facilitate and encourage the participation of MSMEs as well expand the coverage of existing agreements including rules and actions
Dispute Settlement Mechanism address to the prevention or settlement of disputes between the Parties concerning the interpretation implementation or application of the Agreement
ADDITIONAL PROTOCOL
NEXT STEPShellip
1 Free Movement of Capitals 11 Financial integration - Pensions portability along with the persons - Foreign Investment promotion policy - Financial inclusion 12 Infrastructure investment - Regional Investment Fund 13 Public Finance - Mechanism for Exchange of Fiscal Information - Natural Disasters Joint Risk Management
2 Free Movement of Goods amp Services - Homologation administrative norms - Foreign Trade Single Windows interoperability - Consumer Rights Booklet - MoU on Exchange Information about controversy solutions for consumer protection - Mining projects
3 Free Movement of People Pacific Alliance Visa
4 Cooperation aerospace cooperation operations start of the Joint Cooperation Fund of the Pacific Alliance
Contexto negociacioacuten TPP DIRECON
El TPP es el proceso de negociacioacuten econoacutemica y comercial maacutes importante que se desarrolla en el escenario internacional que surge con el objetivo de generar un proceso de integracioacuten en la regioacuten Asia Paciacutefico Negociacioacuten de 12 paiacuteses entre las cuales se encuentran dos de las tres economiacuteas maacutes grandes del mundo Espacio donde se estaacute definiendo la nueva arquitectura del comercio internacional estableciendo las reglas o estaacutendares que lo regiraacuten durante los proacuteximos antildeos Ha sido definido por los miembros de APEC como un elemento central para la construccioacuten de la Zona de Libre de Comercio en el Asia Paciacutefico (regioacuten con los niveles maacutes altos de dinamismo econoacutemico) Respecto de nuestros acuerdos vigentes con paiacuteses TPP seraacute posible completar su cobertura incluyendo temas como servicios compras puacuteblicas e inversiones Beneficios Especiacuteficos Acceso a mercados Compras Puacuteblicas Normas de origen y Acumulacioacuten Facilitacioacuten de Comercio Servicios Inversiones Entrada Temporal de Personas de Negocios Comercio Electroacutenico y Telecomunicaciones Asuntos Ambientales y Laborales Coherencia Regulatoria Otros beneficios
TRANSPACIFIC PARTENERSHIP AGREEMENT (TPP) MEMBER COUNTRIES
TPP is one of the most important trade integration initiatives in the current international scenario Two of the three largest economies in the world are members The agreement will help establish rules for international trade in the Asia Pacific region It has been described by APEC members as a central element for the construction of the Free Trade Area in the Asia Pacific
TRANS PACIFIC PARTNERSHIP (TPP)
38
TPP ndash IMPORTANCE FOR CHILE
Chile will participate in the formulation of rules and standards which will govern international trade during the next century TPP will be a key element to consolidate trade integration between Chile and Asia TPP will position Chile as a business platform to access markets of Latin-America It will enable Chile to enhance coverage of current existing bilateral FTAs
39
1 CHILE`S TRADE POLICY
Chile is relative small and open economy open to free trade through the implementation of a trade policy based on the negotiations of trade agreements For the past 35 to 40 years this strategy has allowed Chile to position itacutes products in important and highly competitive markets around the world Thee fundamental pillars
Unilateral reduction of tariffs
Bilateral negotiations of Trade Agreements
Multilateral integration through WTO OCDE and APEC
CHILEacuteS TRADE POLICY
3
EFFECTIVE TARIFF AND EXPORTS (MM US$ and PERCENTAGE)
4 () Exports 2003-2015 calculated with the average copper price 1987 ndash 2003 = 0965 US$Lb () Weighted average imports tariff
Source Studies Department DIRECON-PROCHILE based on data from Central Bank of Chile UNCTAD and Santiago Chamber of Commerce
0
5
10
15
20
25
30
35
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
1970
1973
1976
1979
1982
1985
1988
1991
1994
1997
2000
2003
2006
2009
2012
2015
EXPORTS
EXPORTS
NON COPPER EXPORTS
29 (MFN 6)
IMPORT TARIFF
09 (MFN 6)
UNILATERAL TARIFF REDUCTION
ACE MERCOSUR
AAE EU
FTA KOREA
FTA USA
FTA CHINA
FTA JAPOacuteN
326 (MFN 220)
62 (MFN 10)
155 (MFN 35)
123 (MFN 20)
95 (MFN 15)
92 (MFN 11)
FTA AUSTRALIA
FTA MALASIA
FTA THAILAND FTA
VIETNAM y HONG KONG
10 (MFN 6)
CHILE ndash FTA NETWORK
5
THAILAND
HONG KONG
VIETNAM
MALAYSIA
TURKEY
ECUADOR
AUSTRALIA
PERU
CUBA
PANAMA
JAPAN
INDIA
P-4
CHINA
EFTA
SOUTH KOREA
UNITED STATES
EUROPEAN UNION
CENTRAL AMERICA
MEXICO
CANADA
MERCOSUR
VENEZUELA
COLOMBIA
BOLIVIA
INDONESIA
THE PHILIPPINES
25 Trade
Agreements with
64 ECONOMIES
AGREEMENTS IN FORCE
AGREEMENTS UNDER NEGOTIATION
639 OF WORLD POPULATION
877 OF WORLD GDP
6
2 THE ROAD TAKEN IN ASIA
7
Source Studies Department DIRECON-PROCHILE based on data of Central Bank of Chile
2003 US$ 68 billion 2015 US$ 32 billion
TRADE FIGURES EXPORTS BY COUNTRY IN ASIA (MILLIONS US$)
53
17
13
6
5 6
28
35
16
3
9 9
China
Japan
South Korea
India
Taipei China
Other
1909 2425 1080 209 602 56
16671
5458 4132
2004 1484 336
China Japan South Korea India Taipei China Thailand
2003
2015
8
Source Studies Department DIRECON-PROCHILE based on data of Central Bank of Chile
2003 US$ 38 billion 2015 US$ 23 billion
TRADE FIGURES IMPORTS BY COUNTRY IN ASIA (MILLIONS US$)
44
19
14
3
2
18
China
Japan
South Korea
Thailand
India
Other
66 9
9
3
3 10
1642 707 537 109 100 255
14800
2105 1996 735 720 358
China Japan South Korea Thailand India Taipei China
2003
2015
9
Countryperiod
1974-2009 2010 2011 2012 2013 2014 2015 Total
Japan 2817956 340616 1484690 2534160 2524905 593076 184296 10479699
Australia 3522512 100846 119451 151898 561594 134533 17949 4608783
China 84620 376 9754 9187 12336 420 184186 300879
South Korea 40371 - 158380 - 14920 16769 - 230440
New Zealand 158791 - - - - - - 158791
India 27107 - - - - - - 27107
Malaysia 22923 - - - - - - 22923
Taiwan 10578 555 2973 - - - - 14106
Singapore 4352 - - - - - - 4352
Asia Pacific Total
6689210 442393 1775248 2695245 3113755 744798 386431 15847080
ASIA PACIFIC FDI IN CHILE (US$ Thousands)
Source Studies Department DIRECON-PROCHILE base on data of Foreign Investment Promotion Agency january-september 2015
3 CHILE ndash THAILAND TRADE
11
CHILE ndash THAILAND BILATERAL TRADE
NUMBER OF PRODUCTS
NUMBER OF COMPANIES
95 (2003)
164 (2015) raquo
132 (2003)
263 (2015) raquo
288
795
336
735
-
100
200
300
400
500
600
700
800
900
Exportaciones (FOB) Importaciones (CIF)
US$ MM
2014 2015
Source Studies Department DIRECON-PROCHILE based on data of Central Bank of Chile
SHARE IN CHILEAN IMPORTS
2015
43
6
11
34
20
1
14
5
THAI EXPORTS TO CHILE MAIN PRODUCTS
12
Source Studies Department DIRECON-PROCHILE over data of Global Trade Atlas
MAIN EXPORTS TO CHILE FROM THAILAND
(Thousand US$)
HS CODE DESCRIPTION 2015
870421 Diesel powered trucks 287586
870332 Automobiles with diesel
engine 61701
870322 Automobiles with engine cylinder gt 1000 lt 1500 cc
58667
160414 Fish prepared or preserved 34055
842810 Pas or Freight elevator 9093
390120 Polyethylene gravity of 094 or
more 6083
845020 Washing machines with dry
linen capacity gt 10 kg 6029
841810 Combined refrigerator -
freezers 6015
CHILEAN EXPORTS TO THAILAND MAIN PRODUCTS
13
MAIN CHILEAN EXPORTS TO THAILAND
(Thousand US$)
HS CODE DESCRIPTION 2015
470311 Chemical wood pulp 47699
740311 Copper cathodes 46029
030313 Frozen Atlantic Salmon 28877
310420 Potassium Chloride 16369
030314 Frozen Trout 15326
030312 Frozen Pacific Salmon 9842
440710 Coniferous Wood Sawn Sliced Etc
Over 6 Mm Thick 4624
0080610 Fresh Grapes 4356
Source Studies Department DIRECON-PROCHILE over data of Global Trade Atlas
SHARE IN THAILAND IMPORTS
2015
372
25
622
59
625
192
106
34
14
4 CHILE ndash THAILAND FTA CONTENTS amp OPPORTUNITIES
FTAacuteS TIMELINE amp CONTENTS
Disciplines Negotiated
Trade in Goods
Rules of Origin
Custom Procedures and Cooperation
Sanitary and Phytosanitary Measures
Technical Barriers to Trade
Trade Remedies
Trade in Services
Financial Services
Dispute Settlement
Transparency
raquo Joint Study Group
raquo Negotiations began in April 2011
raquo Total of 6 Rounds of negotiations where held
raquo Negotiations concluded successfully in August 2012
raquo FTA was signed early October 2013
raquo FTA in force since November 5th 2015
CHILEAN EXPORTS TO THAILAND CHANGES SINCE FTA ENTERED INTO FORCE
16
Subsector Jan
2015
Cooper 5163406
Salmon and trout 6779878
Fish oil 64673
Leather and fur industries 139110
Dry fruits and vegetables 0
Mussels 53050
Sparkling wine 0
Jan
2016
17447064
8156678
311745
171978
83090
80000
4560
Tariff under FTA
0
0-5
0
0
0-40
10-15
0
US$ Dif Nov 1514
28053867
1674381
236101
184659
172923
16190
1480
THAI EXPORTS TO CHILE CHANGES SINCE FTA ENTERED INTO FORCE
17
Subsector Jan
2015
Transportation Equipment Manufacturing 29283305
Mechanic machinery equipment 3756793
Electric machinery equipment 673988
Jewelery and goldsmith 199696
Plastic raw materials 0
Jan
2016
40623355
4161988
474726
640271
196210
Tariff under FTA
0
0 -5 antildeos
0
0
0
US$ Dif Nov 1514
5965017
2324327
2159999
740078
275471
18
MARKET ACCES OFFERs UNDER THE FTA
Thailand granted Chile the
elimination of 901 of tariff lines in immediate category
THAI OFFER
CATEGORY PRODUCTS
NT0 (inmmediate) 7383
NT0 (O tariff for quotas WTO)
87
NT1 ( Year 3) 142
NT2 (Year 5) 575
SL (Year 8) 102
Total 8300
CHILEAN OFFER
CATEGORY PRODUCTS
Year 0 6989
Year 3 321
Year 5 298
SL (Year 8) 107
Total 7715
On the other hand Chile granted immediate tariff elimination to 906 of tariff lines
TARIFF
NMF FTA
5 Year 0
10 Year 0
30 Year 0
0 Year 0
30 Year 0 - Year 3
30 Year 0
30 Year 0
5 Year 0
40 0 in 2016
10 Year 5
10 Year 0
5 - 10 Year 0
30 Year 0 - Year 5
30 Year 0 - Year 5
27 Year 0 - Year 5
CHILEAN EXPORTS TO THAILAND POTENTIAL NEW EXPORTS (thousand US$)
19 Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Description
441239 Plywood consisting solely of sheets of wood
250100 Salt pure sodium chlorideampsea water
080830 Pears
710691 Silver in unwrought forms
200799 Jamsfruit jelliesfruitnut pureacuteeamppaste
200290 Tomatoes prepared or preserved
190490 Cerealsin grain form
310230 Ammonium nitrate pack weighg gt 10 kg
080520 Mandarins
200979 Apple juice
080212 Almondsfresh or driedshelled or peeled
190110 Prep of cerealsflourstarch
200870 Peaches preserved
080510 Oranges fresh or dried
150910 Olive oil virgin
Chiles exports to
World
Thailands imports
from world
348825 28662
189179 7021
141149 40326
139243 304920
129069 8503
127035 19816
106145 12496
95225 12932
93902 106357
90919 5120
87070 33113
73026 92985
72334 20709
62333 5988
57921 8231
THAI EXPORTS TO CHILE POTENTIAL NEW EXPORTS (thousand US$)
20
Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Description
400122 Technically specified natural rubber
870333 Automobiles with diesel engine 2500 cc
271012 Light petroleum oils and preparations
730890 Structuresparts of structures
030617 Other frozen shrimps and prawns
Hair shampoos
390760 Polyethylene terephthalate
330590 Hair preparations nes
390410 Polyvinyl chloride
390720 Polyethers nes
761510 Table kitchen or other household articles
850710 Lead-acid electric accumulators
841199 Parts of gas turbines nes
330610 Dentifrices
Thailand`s exports to
world
Chiles imports
from world
2670862 27215
1555558 85799
1376742 402119
851605 168678
624041 32211
422492 67538
383853 93937
346316 80249
276977 71610
250879 45834
226498 28908
207511 77064
193332 38427
183200 36079
TARIFF
NMF FTA
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
THAILAND EXPORTS KEY PRODUCTS (thousand US$)
21
Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Product label Exported
Thailands 2015
847170 Computer data storage units 10943347
870421 Diesel powered trucks 6798984
271019 Petroleum oils and preparations 5427876
100630 Rice semi-milled or wholly milled 4078187
847330 Parts and accessories of automatic data
processg machines 3253436
854231 Electronic integrated circuits as
processors and controllers 2865029
400122 Technically specified natural rubber
(TSNR) 2670862
870899 Motor vehicle parts nes 2666050
870323 Automobiles w reciprocatg piston engine
displacg gt 1500 cc to 3000 cc 2611009
Thailands exports to
Chile
Chiles imports
from world
2 123864
287582 928981
5 3598452
1656 70351
4 53079
- 14139
- 27215
2045 554180
602 1660996
NMF FTA
6 Year 0
6 Year 0
6 Year 0
6 Year 5
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
Chapter on Rules of Origin meets the standards that Chile has negotiated in recent agreements Committees regarding Technical Barriers to Trade (TBT ) and Sanitary and Phytosanitary Measures (SPS) are included Regarding the chapter on services will grant new opportunities in trade in services The inclusion of a chapter on financial services enable financial institutions in Chile and Thailand obtain a non- discriminatory treatment and to establish andor acquire financial institutions in both financial markets The Agreement also includes a Cooperation chapter that will allow closer cooperation relations between the public private and academic spheres in areas of mutual interest Commitment of start negotiation of an investment chapter
22
CHILE ndash THAILAND FTA
23
5 PRODUCTION LINKAGES
A new step forward in Chilean trade policy designed to leverage business opportunities generated by Chilersquos network of trade agreements Consists of business alliances with trading partners for in-country goods production using imported supplies Production linkages involve processing partner-country materials or parts in Chile Finished value-added goods can then be re-exported to countries making use of Chile tariff reductions Rules of origin play a fundamental role in securing tariff reductions
24
WHAT ARE PRODUCTION LINKAGES
FIRST STEP
The material supply or consumable good is imported to the country with preferential treatment
SUMMARY
Production or
assembly in Chile
FTA Final good
Supplies
Preferencia
Arancelaria
Rules of
Origin
FTAs
Tariff
SECOND STEP The production process is carried out in Chile or Thailand in order to comply with the rules of origin of different trade agreements
THRID STEP
The final good is exported (with Chilean of Thai origin) to other markets
EXAMPLE
Chile ndash Thailand Free Trade
Agreement Potential Market of 566 million
consumers
0 Tariff 0 Tariff
PYMEs
Cooperacioacuten
Servicios
Coherencia Regulatoria
Laboral
Defensa Comercial
Medidas Sanitarias y Fitosanitarias Competitividad
Desarrollo
Temas aduaneros Solucioacuten de Controversias
Reglas de Origen
Inversiones
Obstaacuteculos Teacutecnicos al Comercio
Acceso a Mercados Servicios Financieros
Comercio Electroacutenico
Asuntos Legales Administracioacuten Transparencia Anticorrupcioacuten
Excepciones Disposiciones Finales
Medio Ambiente
Propiedad Intelectual
Empresas del Estado
Entrada Temporal
Compras Puacuteblicas
Telecomunicaciones
CONTEXTO Temas Bajo Negociacioacuten
27
6 FINAL REMARKS
The Agreement will allow both countries Establish economic alliances and reciprocal investments
Simplify sanitary and technical regulations
Standardize customs procedures
Faster addressing trade problems through contact points and
Technical Committees
28
MAIN BENEFITS
THANK YOU
Diego Torres Diez
Head Asia and Oceania Department
General Directorate for International Economic Affairs
April 2016
PACIFIC ALLIANCE FIGURES
6th world economy (28 world GDP)
35 population of LAC (216 millions)
527 Latin American exports
37 GDP and 31 FDI of LAC
Source IMF (World Economic Outlook octubre 2014) y World Factbook-CIA World Investment Report 2014 -UNCTAD Trademap () 2013
ACHIEVEMENTS
Framework Agreement
First Additional Protocol to the Framework Agreement
Aditional dispositions on e-commerce amp telecommunications
Intellectual property projects
Consolidation of MILA biggest Latinamerica stock market
Joint Events on Export Promotion
Visa acilities for business people staying over 180 days
Visa tourist exemption
Student Grants
Joint Cooperation Fund of the Pacific Alliance
Inter-institutional Agreement on pharmaceuticals products
Cooperation Agreement in Tourism
Joint Diplomatic and Trade Offices
Migratory Exchange of Information XX032014
Oficina Comercial
ADDITIONAL PROTOCOL
Tariffs elimination bull 100 Tariffs elimination bull 92 immediately once entry into force bull 8 short and medium term (between 3 and 17 years)
Rules of origin Flexibility single rule and accumulation through PA member in order to the commercial integration
Trade facilitation Electronic Certification of Origin Interoperability of the single window Custom Cooperation Authorized Economic Operator
Sanitary and Phytosanitary Measures Increase transparency in the application of sanitary and phytosanitary measures and strengthen the use of science-based
Technical Barriers to Trade Increase transparency and the regulatory cooperation among other matters
Comprehensive Chapters in Services and Investment
Cross-Border Trade in Services and Investment Protect cross border trade in services the investors and their investments in the countries of the Pacific Alliance Telecomunications Ensure of telecommunications services in the region of the Pacific Alliance under free competition particularly in relation to the dominant suppliers E-Commerce Electronic transactions of goods and services shall be regulated including digital products to ensure their safety and efficiency Maritime Services Grant a non-discriminatory treatment to ships from PA countries in its ports the recognition of the documentation of vessels and crew among others Financial Services Grant legal certainty for investors and service providers from the four countries in the financial sector consolidating the laws of each country
ADDITIONAL PROTOCOL
Government Procurement Facilitate and encourage the participation of MSMEs as well expand the coverage of existing agreements including rules and actions
Dispute Settlement Mechanism address to the prevention or settlement of disputes between the Parties concerning the interpretation implementation or application of the Agreement
ADDITIONAL PROTOCOL
NEXT STEPShellip
1 Free Movement of Capitals 11 Financial integration - Pensions portability along with the persons - Foreign Investment promotion policy - Financial inclusion 12 Infrastructure investment - Regional Investment Fund 13 Public Finance - Mechanism for Exchange of Fiscal Information - Natural Disasters Joint Risk Management
2 Free Movement of Goods amp Services - Homologation administrative norms - Foreign Trade Single Windows interoperability - Consumer Rights Booklet - MoU on Exchange Information about controversy solutions for consumer protection - Mining projects
3 Free Movement of People Pacific Alliance Visa
4 Cooperation aerospace cooperation operations start of the Joint Cooperation Fund of the Pacific Alliance
Contexto negociacioacuten TPP DIRECON
El TPP es el proceso de negociacioacuten econoacutemica y comercial maacutes importante que se desarrolla en el escenario internacional que surge con el objetivo de generar un proceso de integracioacuten en la regioacuten Asia Paciacutefico Negociacioacuten de 12 paiacuteses entre las cuales se encuentran dos de las tres economiacuteas maacutes grandes del mundo Espacio donde se estaacute definiendo la nueva arquitectura del comercio internacional estableciendo las reglas o estaacutendares que lo regiraacuten durante los proacuteximos antildeos Ha sido definido por los miembros de APEC como un elemento central para la construccioacuten de la Zona de Libre de Comercio en el Asia Paciacutefico (regioacuten con los niveles maacutes altos de dinamismo econoacutemico) Respecto de nuestros acuerdos vigentes con paiacuteses TPP seraacute posible completar su cobertura incluyendo temas como servicios compras puacuteblicas e inversiones Beneficios Especiacuteficos Acceso a mercados Compras Puacuteblicas Normas de origen y Acumulacioacuten Facilitacioacuten de Comercio Servicios Inversiones Entrada Temporal de Personas de Negocios Comercio Electroacutenico y Telecomunicaciones Asuntos Ambientales y Laborales Coherencia Regulatoria Otros beneficios
TRANSPACIFIC PARTENERSHIP AGREEMENT (TPP) MEMBER COUNTRIES
TPP is one of the most important trade integration initiatives in the current international scenario Two of the three largest economies in the world are members The agreement will help establish rules for international trade in the Asia Pacific region It has been described by APEC members as a central element for the construction of the Free Trade Area in the Asia Pacific
TRANS PACIFIC PARTNERSHIP (TPP)
38
TPP ndash IMPORTANCE FOR CHILE
Chile will participate in the formulation of rules and standards which will govern international trade during the next century TPP will be a key element to consolidate trade integration between Chile and Asia TPP will position Chile as a business platform to access markets of Latin-America It will enable Chile to enhance coverage of current existing bilateral FTAs
39
Chile is relative small and open economy open to free trade through the implementation of a trade policy based on the negotiations of trade agreements For the past 35 to 40 years this strategy has allowed Chile to position itacutes products in important and highly competitive markets around the world Thee fundamental pillars
Unilateral reduction of tariffs
Bilateral negotiations of Trade Agreements
Multilateral integration through WTO OCDE and APEC
CHILEacuteS TRADE POLICY
3
EFFECTIVE TARIFF AND EXPORTS (MM US$ and PERCENTAGE)
4 () Exports 2003-2015 calculated with the average copper price 1987 ndash 2003 = 0965 US$Lb () Weighted average imports tariff
Source Studies Department DIRECON-PROCHILE based on data from Central Bank of Chile UNCTAD and Santiago Chamber of Commerce
0
5
10
15
20
25
30
35
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
1970
1973
1976
1979
1982
1985
1988
1991
1994
1997
2000
2003
2006
2009
2012
2015
EXPORTS
EXPORTS
NON COPPER EXPORTS
29 (MFN 6)
IMPORT TARIFF
09 (MFN 6)
UNILATERAL TARIFF REDUCTION
ACE MERCOSUR
AAE EU
FTA KOREA
FTA USA
FTA CHINA
FTA JAPOacuteN
326 (MFN 220)
62 (MFN 10)
155 (MFN 35)
123 (MFN 20)
95 (MFN 15)
92 (MFN 11)
FTA AUSTRALIA
FTA MALASIA
FTA THAILAND FTA
VIETNAM y HONG KONG
10 (MFN 6)
CHILE ndash FTA NETWORK
5
THAILAND
HONG KONG
VIETNAM
MALAYSIA
TURKEY
ECUADOR
AUSTRALIA
PERU
CUBA
PANAMA
JAPAN
INDIA
P-4
CHINA
EFTA
SOUTH KOREA
UNITED STATES
EUROPEAN UNION
CENTRAL AMERICA
MEXICO
CANADA
MERCOSUR
VENEZUELA
COLOMBIA
BOLIVIA
INDONESIA
THE PHILIPPINES
25 Trade
Agreements with
64 ECONOMIES
AGREEMENTS IN FORCE
AGREEMENTS UNDER NEGOTIATION
639 OF WORLD POPULATION
877 OF WORLD GDP
6
2 THE ROAD TAKEN IN ASIA
7
Source Studies Department DIRECON-PROCHILE based on data of Central Bank of Chile
2003 US$ 68 billion 2015 US$ 32 billion
TRADE FIGURES EXPORTS BY COUNTRY IN ASIA (MILLIONS US$)
53
17
13
6
5 6
28
35
16
3
9 9
China
Japan
South Korea
India
Taipei China
Other
1909 2425 1080 209 602 56
16671
5458 4132
2004 1484 336
China Japan South Korea India Taipei China Thailand
2003
2015
8
Source Studies Department DIRECON-PROCHILE based on data of Central Bank of Chile
2003 US$ 38 billion 2015 US$ 23 billion
TRADE FIGURES IMPORTS BY COUNTRY IN ASIA (MILLIONS US$)
44
19
14
3
2
18
China
Japan
South Korea
Thailand
India
Other
66 9
9
3
3 10
1642 707 537 109 100 255
14800
2105 1996 735 720 358
China Japan South Korea Thailand India Taipei China
2003
2015
9
Countryperiod
1974-2009 2010 2011 2012 2013 2014 2015 Total
Japan 2817956 340616 1484690 2534160 2524905 593076 184296 10479699
Australia 3522512 100846 119451 151898 561594 134533 17949 4608783
China 84620 376 9754 9187 12336 420 184186 300879
South Korea 40371 - 158380 - 14920 16769 - 230440
New Zealand 158791 - - - - - - 158791
India 27107 - - - - - - 27107
Malaysia 22923 - - - - - - 22923
Taiwan 10578 555 2973 - - - - 14106
Singapore 4352 - - - - - - 4352
Asia Pacific Total
6689210 442393 1775248 2695245 3113755 744798 386431 15847080
ASIA PACIFIC FDI IN CHILE (US$ Thousands)
Source Studies Department DIRECON-PROCHILE base on data of Foreign Investment Promotion Agency january-september 2015
3 CHILE ndash THAILAND TRADE
11
CHILE ndash THAILAND BILATERAL TRADE
NUMBER OF PRODUCTS
NUMBER OF COMPANIES
95 (2003)
164 (2015) raquo
132 (2003)
263 (2015) raquo
288
795
336
735
-
100
200
300
400
500
600
700
800
900
Exportaciones (FOB) Importaciones (CIF)
US$ MM
2014 2015
Source Studies Department DIRECON-PROCHILE based on data of Central Bank of Chile
SHARE IN CHILEAN IMPORTS
2015
43
6
11
34
20
1
14
5
THAI EXPORTS TO CHILE MAIN PRODUCTS
12
Source Studies Department DIRECON-PROCHILE over data of Global Trade Atlas
MAIN EXPORTS TO CHILE FROM THAILAND
(Thousand US$)
HS CODE DESCRIPTION 2015
870421 Diesel powered trucks 287586
870332 Automobiles with diesel
engine 61701
870322 Automobiles with engine cylinder gt 1000 lt 1500 cc
58667
160414 Fish prepared or preserved 34055
842810 Pas or Freight elevator 9093
390120 Polyethylene gravity of 094 or
more 6083
845020 Washing machines with dry
linen capacity gt 10 kg 6029
841810 Combined refrigerator -
freezers 6015
CHILEAN EXPORTS TO THAILAND MAIN PRODUCTS
13
MAIN CHILEAN EXPORTS TO THAILAND
(Thousand US$)
HS CODE DESCRIPTION 2015
470311 Chemical wood pulp 47699
740311 Copper cathodes 46029
030313 Frozen Atlantic Salmon 28877
310420 Potassium Chloride 16369
030314 Frozen Trout 15326
030312 Frozen Pacific Salmon 9842
440710 Coniferous Wood Sawn Sliced Etc
Over 6 Mm Thick 4624
0080610 Fresh Grapes 4356
Source Studies Department DIRECON-PROCHILE over data of Global Trade Atlas
SHARE IN THAILAND IMPORTS
2015
372
25
622
59
625
192
106
34
14
4 CHILE ndash THAILAND FTA CONTENTS amp OPPORTUNITIES
FTAacuteS TIMELINE amp CONTENTS
Disciplines Negotiated
Trade in Goods
Rules of Origin
Custom Procedures and Cooperation
Sanitary and Phytosanitary Measures
Technical Barriers to Trade
Trade Remedies
Trade in Services
Financial Services
Dispute Settlement
Transparency
raquo Joint Study Group
raquo Negotiations began in April 2011
raquo Total of 6 Rounds of negotiations where held
raquo Negotiations concluded successfully in August 2012
raquo FTA was signed early October 2013
raquo FTA in force since November 5th 2015
CHILEAN EXPORTS TO THAILAND CHANGES SINCE FTA ENTERED INTO FORCE
16
Subsector Jan
2015
Cooper 5163406
Salmon and trout 6779878
Fish oil 64673
Leather and fur industries 139110
Dry fruits and vegetables 0
Mussels 53050
Sparkling wine 0
Jan
2016
17447064
8156678
311745
171978
83090
80000
4560
Tariff under FTA
0
0-5
0
0
0-40
10-15
0
US$ Dif Nov 1514
28053867
1674381
236101
184659
172923
16190
1480
THAI EXPORTS TO CHILE CHANGES SINCE FTA ENTERED INTO FORCE
17
Subsector Jan
2015
Transportation Equipment Manufacturing 29283305
Mechanic machinery equipment 3756793
Electric machinery equipment 673988
Jewelery and goldsmith 199696
Plastic raw materials 0
Jan
2016
40623355
4161988
474726
640271
196210
Tariff under FTA
0
0 -5 antildeos
0
0
0
US$ Dif Nov 1514
5965017
2324327
2159999
740078
275471
18
MARKET ACCES OFFERs UNDER THE FTA
Thailand granted Chile the
elimination of 901 of tariff lines in immediate category
THAI OFFER
CATEGORY PRODUCTS
NT0 (inmmediate) 7383
NT0 (O tariff for quotas WTO)
87
NT1 ( Year 3) 142
NT2 (Year 5) 575
SL (Year 8) 102
Total 8300
CHILEAN OFFER
CATEGORY PRODUCTS
Year 0 6989
Year 3 321
Year 5 298
SL (Year 8) 107
Total 7715
On the other hand Chile granted immediate tariff elimination to 906 of tariff lines
TARIFF
NMF FTA
5 Year 0
10 Year 0
30 Year 0
0 Year 0
30 Year 0 - Year 3
30 Year 0
30 Year 0
5 Year 0
40 0 in 2016
10 Year 5
10 Year 0
5 - 10 Year 0
30 Year 0 - Year 5
30 Year 0 - Year 5
27 Year 0 - Year 5
CHILEAN EXPORTS TO THAILAND POTENTIAL NEW EXPORTS (thousand US$)
19 Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Description
441239 Plywood consisting solely of sheets of wood
250100 Salt pure sodium chlorideampsea water
080830 Pears
710691 Silver in unwrought forms
200799 Jamsfruit jelliesfruitnut pureacuteeamppaste
200290 Tomatoes prepared or preserved
190490 Cerealsin grain form
310230 Ammonium nitrate pack weighg gt 10 kg
080520 Mandarins
200979 Apple juice
080212 Almondsfresh or driedshelled or peeled
190110 Prep of cerealsflourstarch
200870 Peaches preserved
080510 Oranges fresh or dried
150910 Olive oil virgin
Chiles exports to
World
Thailands imports
from world
348825 28662
189179 7021
141149 40326
139243 304920
129069 8503
127035 19816
106145 12496
95225 12932
93902 106357
90919 5120
87070 33113
73026 92985
72334 20709
62333 5988
57921 8231
THAI EXPORTS TO CHILE POTENTIAL NEW EXPORTS (thousand US$)
20
Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Description
400122 Technically specified natural rubber
870333 Automobiles with diesel engine 2500 cc
271012 Light petroleum oils and preparations
730890 Structuresparts of structures
030617 Other frozen shrimps and prawns
Hair shampoos
390760 Polyethylene terephthalate
330590 Hair preparations nes
390410 Polyvinyl chloride
390720 Polyethers nes
761510 Table kitchen or other household articles
850710 Lead-acid electric accumulators
841199 Parts of gas turbines nes
330610 Dentifrices
Thailand`s exports to
world
Chiles imports
from world
2670862 27215
1555558 85799
1376742 402119
851605 168678
624041 32211
422492 67538
383853 93937
346316 80249
276977 71610
250879 45834
226498 28908
207511 77064
193332 38427
183200 36079
TARIFF
NMF FTA
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
THAILAND EXPORTS KEY PRODUCTS (thousand US$)
21
Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Product label Exported
Thailands 2015
847170 Computer data storage units 10943347
870421 Diesel powered trucks 6798984
271019 Petroleum oils and preparations 5427876
100630 Rice semi-milled or wholly milled 4078187
847330 Parts and accessories of automatic data
processg machines 3253436
854231 Electronic integrated circuits as
processors and controllers 2865029
400122 Technically specified natural rubber
(TSNR) 2670862
870899 Motor vehicle parts nes 2666050
870323 Automobiles w reciprocatg piston engine
displacg gt 1500 cc to 3000 cc 2611009
Thailands exports to
Chile
Chiles imports
from world
2 123864
287582 928981
5 3598452
1656 70351
4 53079
- 14139
- 27215
2045 554180
602 1660996
NMF FTA
6 Year 0
6 Year 0
6 Year 0
6 Year 5
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
Chapter on Rules of Origin meets the standards that Chile has negotiated in recent agreements Committees regarding Technical Barriers to Trade (TBT ) and Sanitary and Phytosanitary Measures (SPS) are included Regarding the chapter on services will grant new opportunities in trade in services The inclusion of a chapter on financial services enable financial institutions in Chile and Thailand obtain a non- discriminatory treatment and to establish andor acquire financial institutions in both financial markets The Agreement also includes a Cooperation chapter that will allow closer cooperation relations between the public private and academic spheres in areas of mutual interest Commitment of start negotiation of an investment chapter
22
CHILE ndash THAILAND FTA
23
5 PRODUCTION LINKAGES
A new step forward in Chilean trade policy designed to leverage business opportunities generated by Chilersquos network of trade agreements Consists of business alliances with trading partners for in-country goods production using imported supplies Production linkages involve processing partner-country materials or parts in Chile Finished value-added goods can then be re-exported to countries making use of Chile tariff reductions Rules of origin play a fundamental role in securing tariff reductions
24
WHAT ARE PRODUCTION LINKAGES
FIRST STEP
The material supply or consumable good is imported to the country with preferential treatment
SUMMARY
Production or
assembly in Chile
FTA Final good
Supplies
Preferencia
Arancelaria
Rules of
Origin
FTAs
Tariff
SECOND STEP The production process is carried out in Chile or Thailand in order to comply with the rules of origin of different trade agreements
THRID STEP
The final good is exported (with Chilean of Thai origin) to other markets
EXAMPLE
Chile ndash Thailand Free Trade
Agreement Potential Market of 566 million
consumers
0 Tariff 0 Tariff
PYMEs
Cooperacioacuten
Servicios
Coherencia Regulatoria
Laboral
Defensa Comercial
Medidas Sanitarias y Fitosanitarias Competitividad
Desarrollo
Temas aduaneros Solucioacuten de Controversias
Reglas de Origen
Inversiones
Obstaacuteculos Teacutecnicos al Comercio
Acceso a Mercados Servicios Financieros
Comercio Electroacutenico
Asuntos Legales Administracioacuten Transparencia Anticorrupcioacuten
Excepciones Disposiciones Finales
Medio Ambiente
Propiedad Intelectual
Empresas del Estado
Entrada Temporal
Compras Puacuteblicas
Telecomunicaciones
CONTEXTO Temas Bajo Negociacioacuten
27
6 FINAL REMARKS
The Agreement will allow both countries Establish economic alliances and reciprocal investments
Simplify sanitary and technical regulations
Standardize customs procedures
Faster addressing trade problems through contact points and
Technical Committees
28
MAIN BENEFITS
THANK YOU
Diego Torres Diez
Head Asia and Oceania Department
General Directorate for International Economic Affairs
April 2016
PACIFIC ALLIANCE FIGURES
6th world economy (28 world GDP)
35 population of LAC (216 millions)
527 Latin American exports
37 GDP and 31 FDI of LAC
Source IMF (World Economic Outlook octubre 2014) y World Factbook-CIA World Investment Report 2014 -UNCTAD Trademap () 2013
ACHIEVEMENTS
Framework Agreement
First Additional Protocol to the Framework Agreement
Aditional dispositions on e-commerce amp telecommunications
Intellectual property projects
Consolidation of MILA biggest Latinamerica stock market
Joint Events on Export Promotion
Visa acilities for business people staying over 180 days
Visa tourist exemption
Student Grants
Joint Cooperation Fund of the Pacific Alliance
Inter-institutional Agreement on pharmaceuticals products
Cooperation Agreement in Tourism
Joint Diplomatic and Trade Offices
Migratory Exchange of Information XX032014
Oficina Comercial
ADDITIONAL PROTOCOL
Tariffs elimination bull 100 Tariffs elimination bull 92 immediately once entry into force bull 8 short and medium term (between 3 and 17 years)
Rules of origin Flexibility single rule and accumulation through PA member in order to the commercial integration
Trade facilitation Electronic Certification of Origin Interoperability of the single window Custom Cooperation Authorized Economic Operator
Sanitary and Phytosanitary Measures Increase transparency in the application of sanitary and phytosanitary measures and strengthen the use of science-based
Technical Barriers to Trade Increase transparency and the regulatory cooperation among other matters
Comprehensive Chapters in Services and Investment
Cross-Border Trade in Services and Investment Protect cross border trade in services the investors and their investments in the countries of the Pacific Alliance Telecomunications Ensure of telecommunications services in the region of the Pacific Alliance under free competition particularly in relation to the dominant suppliers E-Commerce Electronic transactions of goods and services shall be regulated including digital products to ensure their safety and efficiency Maritime Services Grant a non-discriminatory treatment to ships from PA countries in its ports the recognition of the documentation of vessels and crew among others Financial Services Grant legal certainty for investors and service providers from the four countries in the financial sector consolidating the laws of each country
ADDITIONAL PROTOCOL
Government Procurement Facilitate and encourage the participation of MSMEs as well expand the coverage of existing agreements including rules and actions
Dispute Settlement Mechanism address to the prevention or settlement of disputes between the Parties concerning the interpretation implementation or application of the Agreement
ADDITIONAL PROTOCOL
NEXT STEPShellip
1 Free Movement of Capitals 11 Financial integration - Pensions portability along with the persons - Foreign Investment promotion policy - Financial inclusion 12 Infrastructure investment - Regional Investment Fund 13 Public Finance - Mechanism for Exchange of Fiscal Information - Natural Disasters Joint Risk Management
2 Free Movement of Goods amp Services - Homologation administrative norms - Foreign Trade Single Windows interoperability - Consumer Rights Booklet - MoU on Exchange Information about controversy solutions for consumer protection - Mining projects
3 Free Movement of People Pacific Alliance Visa
4 Cooperation aerospace cooperation operations start of the Joint Cooperation Fund of the Pacific Alliance
Contexto negociacioacuten TPP DIRECON
El TPP es el proceso de negociacioacuten econoacutemica y comercial maacutes importante que se desarrolla en el escenario internacional que surge con el objetivo de generar un proceso de integracioacuten en la regioacuten Asia Paciacutefico Negociacioacuten de 12 paiacuteses entre las cuales se encuentran dos de las tres economiacuteas maacutes grandes del mundo Espacio donde se estaacute definiendo la nueva arquitectura del comercio internacional estableciendo las reglas o estaacutendares que lo regiraacuten durante los proacuteximos antildeos Ha sido definido por los miembros de APEC como un elemento central para la construccioacuten de la Zona de Libre de Comercio en el Asia Paciacutefico (regioacuten con los niveles maacutes altos de dinamismo econoacutemico) Respecto de nuestros acuerdos vigentes con paiacuteses TPP seraacute posible completar su cobertura incluyendo temas como servicios compras puacuteblicas e inversiones Beneficios Especiacuteficos Acceso a mercados Compras Puacuteblicas Normas de origen y Acumulacioacuten Facilitacioacuten de Comercio Servicios Inversiones Entrada Temporal de Personas de Negocios Comercio Electroacutenico y Telecomunicaciones Asuntos Ambientales y Laborales Coherencia Regulatoria Otros beneficios
TRANSPACIFIC PARTENERSHIP AGREEMENT (TPP) MEMBER COUNTRIES
TPP is one of the most important trade integration initiatives in the current international scenario Two of the three largest economies in the world are members The agreement will help establish rules for international trade in the Asia Pacific region It has been described by APEC members as a central element for the construction of the Free Trade Area in the Asia Pacific
TRANS PACIFIC PARTNERSHIP (TPP)
38
TPP ndash IMPORTANCE FOR CHILE
Chile will participate in the formulation of rules and standards which will govern international trade during the next century TPP will be a key element to consolidate trade integration between Chile and Asia TPP will position Chile as a business platform to access markets of Latin-America It will enable Chile to enhance coverage of current existing bilateral FTAs
39
EFFECTIVE TARIFF AND EXPORTS (MM US$ and PERCENTAGE)
4 () Exports 2003-2015 calculated with the average copper price 1987 ndash 2003 = 0965 US$Lb () Weighted average imports tariff
Source Studies Department DIRECON-PROCHILE based on data from Central Bank of Chile UNCTAD and Santiago Chamber of Commerce
0
5
10
15
20
25
30
35
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
1970
1973
1976
1979
1982
1985
1988
1991
1994
1997
2000
2003
2006
2009
2012
2015
EXPORTS
EXPORTS
NON COPPER EXPORTS
29 (MFN 6)
IMPORT TARIFF
09 (MFN 6)
UNILATERAL TARIFF REDUCTION
ACE MERCOSUR
AAE EU
FTA KOREA
FTA USA
FTA CHINA
FTA JAPOacuteN
326 (MFN 220)
62 (MFN 10)
155 (MFN 35)
123 (MFN 20)
95 (MFN 15)
92 (MFN 11)
FTA AUSTRALIA
FTA MALASIA
FTA THAILAND FTA
VIETNAM y HONG KONG
10 (MFN 6)
CHILE ndash FTA NETWORK
5
THAILAND
HONG KONG
VIETNAM
MALAYSIA
TURKEY
ECUADOR
AUSTRALIA
PERU
CUBA
PANAMA
JAPAN
INDIA
P-4
CHINA
EFTA
SOUTH KOREA
UNITED STATES
EUROPEAN UNION
CENTRAL AMERICA
MEXICO
CANADA
MERCOSUR
VENEZUELA
COLOMBIA
BOLIVIA
INDONESIA
THE PHILIPPINES
25 Trade
Agreements with
64 ECONOMIES
AGREEMENTS IN FORCE
AGREEMENTS UNDER NEGOTIATION
639 OF WORLD POPULATION
877 OF WORLD GDP
6
2 THE ROAD TAKEN IN ASIA
7
Source Studies Department DIRECON-PROCHILE based on data of Central Bank of Chile
2003 US$ 68 billion 2015 US$ 32 billion
TRADE FIGURES EXPORTS BY COUNTRY IN ASIA (MILLIONS US$)
53
17
13
6
5 6
28
35
16
3
9 9
China
Japan
South Korea
India
Taipei China
Other
1909 2425 1080 209 602 56
16671
5458 4132
2004 1484 336
China Japan South Korea India Taipei China Thailand
2003
2015
8
Source Studies Department DIRECON-PROCHILE based on data of Central Bank of Chile
2003 US$ 38 billion 2015 US$ 23 billion
TRADE FIGURES IMPORTS BY COUNTRY IN ASIA (MILLIONS US$)
44
19
14
3
2
18
China
Japan
South Korea
Thailand
India
Other
66 9
9
3
3 10
1642 707 537 109 100 255
14800
2105 1996 735 720 358
China Japan South Korea Thailand India Taipei China
2003
2015
9
Countryperiod
1974-2009 2010 2011 2012 2013 2014 2015 Total
Japan 2817956 340616 1484690 2534160 2524905 593076 184296 10479699
Australia 3522512 100846 119451 151898 561594 134533 17949 4608783
China 84620 376 9754 9187 12336 420 184186 300879
South Korea 40371 - 158380 - 14920 16769 - 230440
New Zealand 158791 - - - - - - 158791
India 27107 - - - - - - 27107
Malaysia 22923 - - - - - - 22923
Taiwan 10578 555 2973 - - - - 14106
Singapore 4352 - - - - - - 4352
Asia Pacific Total
6689210 442393 1775248 2695245 3113755 744798 386431 15847080
ASIA PACIFIC FDI IN CHILE (US$ Thousands)
Source Studies Department DIRECON-PROCHILE base on data of Foreign Investment Promotion Agency january-september 2015
3 CHILE ndash THAILAND TRADE
11
CHILE ndash THAILAND BILATERAL TRADE
NUMBER OF PRODUCTS
NUMBER OF COMPANIES
95 (2003)
164 (2015) raquo
132 (2003)
263 (2015) raquo
288
795
336
735
-
100
200
300
400
500
600
700
800
900
Exportaciones (FOB) Importaciones (CIF)
US$ MM
2014 2015
Source Studies Department DIRECON-PROCHILE based on data of Central Bank of Chile
SHARE IN CHILEAN IMPORTS
2015
43
6
11
34
20
1
14
5
THAI EXPORTS TO CHILE MAIN PRODUCTS
12
Source Studies Department DIRECON-PROCHILE over data of Global Trade Atlas
MAIN EXPORTS TO CHILE FROM THAILAND
(Thousand US$)
HS CODE DESCRIPTION 2015
870421 Diesel powered trucks 287586
870332 Automobiles with diesel
engine 61701
870322 Automobiles with engine cylinder gt 1000 lt 1500 cc
58667
160414 Fish prepared or preserved 34055
842810 Pas or Freight elevator 9093
390120 Polyethylene gravity of 094 or
more 6083
845020 Washing machines with dry
linen capacity gt 10 kg 6029
841810 Combined refrigerator -
freezers 6015
CHILEAN EXPORTS TO THAILAND MAIN PRODUCTS
13
MAIN CHILEAN EXPORTS TO THAILAND
(Thousand US$)
HS CODE DESCRIPTION 2015
470311 Chemical wood pulp 47699
740311 Copper cathodes 46029
030313 Frozen Atlantic Salmon 28877
310420 Potassium Chloride 16369
030314 Frozen Trout 15326
030312 Frozen Pacific Salmon 9842
440710 Coniferous Wood Sawn Sliced Etc
Over 6 Mm Thick 4624
0080610 Fresh Grapes 4356
Source Studies Department DIRECON-PROCHILE over data of Global Trade Atlas
SHARE IN THAILAND IMPORTS
2015
372
25
622
59
625
192
106
34
14
4 CHILE ndash THAILAND FTA CONTENTS amp OPPORTUNITIES
FTAacuteS TIMELINE amp CONTENTS
Disciplines Negotiated
Trade in Goods
Rules of Origin
Custom Procedures and Cooperation
Sanitary and Phytosanitary Measures
Technical Barriers to Trade
Trade Remedies
Trade in Services
Financial Services
Dispute Settlement
Transparency
raquo Joint Study Group
raquo Negotiations began in April 2011
raquo Total of 6 Rounds of negotiations where held
raquo Negotiations concluded successfully in August 2012
raquo FTA was signed early October 2013
raquo FTA in force since November 5th 2015
CHILEAN EXPORTS TO THAILAND CHANGES SINCE FTA ENTERED INTO FORCE
16
Subsector Jan
2015
Cooper 5163406
Salmon and trout 6779878
Fish oil 64673
Leather and fur industries 139110
Dry fruits and vegetables 0
Mussels 53050
Sparkling wine 0
Jan
2016
17447064
8156678
311745
171978
83090
80000
4560
Tariff under FTA
0
0-5
0
0
0-40
10-15
0
US$ Dif Nov 1514
28053867
1674381
236101
184659
172923
16190
1480
THAI EXPORTS TO CHILE CHANGES SINCE FTA ENTERED INTO FORCE
17
Subsector Jan
2015
Transportation Equipment Manufacturing 29283305
Mechanic machinery equipment 3756793
Electric machinery equipment 673988
Jewelery and goldsmith 199696
Plastic raw materials 0
Jan
2016
40623355
4161988
474726
640271
196210
Tariff under FTA
0
0 -5 antildeos
0
0
0
US$ Dif Nov 1514
5965017
2324327
2159999
740078
275471
18
MARKET ACCES OFFERs UNDER THE FTA
Thailand granted Chile the
elimination of 901 of tariff lines in immediate category
THAI OFFER
CATEGORY PRODUCTS
NT0 (inmmediate) 7383
NT0 (O tariff for quotas WTO)
87
NT1 ( Year 3) 142
NT2 (Year 5) 575
SL (Year 8) 102
Total 8300
CHILEAN OFFER
CATEGORY PRODUCTS
Year 0 6989
Year 3 321
Year 5 298
SL (Year 8) 107
Total 7715
On the other hand Chile granted immediate tariff elimination to 906 of tariff lines
TARIFF
NMF FTA
5 Year 0
10 Year 0
30 Year 0
0 Year 0
30 Year 0 - Year 3
30 Year 0
30 Year 0
5 Year 0
40 0 in 2016
10 Year 5
10 Year 0
5 - 10 Year 0
30 Year 0 - Year 5
30 Year 0 - Year 5
27 Year 0 - Year 5
CHILEAN EXPORTS TO THAILAND POTENTIAL NEW EXPORTS (thousand US$)
19 Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Description
441239 Plywood consisting solely of sheets of wood
250100 Salt pure sodium chlorideampsea water
080830 Pears
710691 Silver in unwrought forms
200799 Jamsfruit jelliesfruitnut pureacuteeamppaste
200290 Tomatoes prepared or preserved
190490 Cerealsin grain form
310230 Ammonium nitrate pack weighg gt 10 kg
080520 Mandarins
200979 Apple juice
080212 Almondsfresh or driedshelled or peeled
190110 Prep of cerealsflourstarch
200870 Peaches preserved
080510 Oranges fresh or dried
150910 Olive oil virgin
Chiles exports to
World
Thailands imports
from world
348825 28662
189179 7021
141149 40326
139243 304920
129069 8503
127035 19816
106145 12496
95225 12932
93902 106357
90919 5120
87070 33113
73026 92985
72334 20709
62333 5988
57921 8231
THAI EXPORTS TO CHILE POTENTIAL NEW EXPORTS (thousand US$)
20
Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Description
400122 Technically specified natural rubber
870333 Automobiles with diesel engine 2500 cc
271012 Light petroleum oils and preparations
730890 Structuresparts of structures
030617 Other frozen shrimps and prawns
Hair shampoos
390760 Polyethylene terephthalate
330590 Hair preparations nes
390410 Polyvinyl chloride
390720 Polyethers nes
761510 Table kitchen or other household articles
850710 Lead-acid electric accumulators
841199 Parts of gas turbines nes
330610 Dentifrices
Thailand`s exports to
world
Chiles imports
from world
2670862 27215
1555558 85799
1376742 402119
851605 168678
624041 32211
422492 67538
383853 93937
346316 80249
276977 71610
250879 45834
226498 28908
207511 77064
193332 38427
183200 36079
TARIFF
NMF FTA
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
THAILAND EXPORTS KEY PRODUCTS (thousand US$)
21
Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Product label Exported
Thailands 2015
847170 Computer data storage units 10943347
870421 Diesel powered trucks 6798984
271019 Petroleum oils and preparations 5427876
100630 Rice semi-milled or wholly milled 4078187
847330 Parts and accessories of automatic data
processg machines 3253436
854231 Electronic integrated circuits as
processors and controllers 2865029
400122 Technically specified natural rubber
(TSNR) 2670862
870899 Motor vehicle parts nes 2666050
870323 Automobiles w reciprocatg piston engine
displacg gt 1500 cc to 3000 cc 2611009
Thailands exports to
Chile
Chiles imports
from world
2 123864
287582 928981
5 3598452
1656 70351
4 53079
- 14139
- 27215
2045 554180
602 1660996
NMF FTA
6 Year 0
6 Year 0
6 Year 0
6 Year 5
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
Chapter on Rules of Origin meets the standards that Chile has negotiated in recent agreements Committees regarding Technical Barriers to Trade (TBT ) and Sanitary and Phytosanitary Measures (SPS) are included Regarding the chapter on services will grant new opportunities in trade in services The inclusion of a chapter on financial services enable financial institutions in Chile and Thailand obtain a non- discriminatory treatment and to establish andor acquire financial institutions in both financial markets The Agreement also includes a Cooperation chapter that will allow closer cooperation relations between the public private and academic spheres in areas of mutual interest Commitment of start negotiation of an investment chapter
22
CHILE ndash THAILAND FTA
23
5 PRODUCTION LINKAGES
A new step forward in Chilean trade policy designed to leverage business opportunities generated by Chilersquos network of trade agreements Consists of business alliances with trading partners for in-country goods production using imported supplies Production linkages involve processing partner-country materials or parts in Chile Finished value-added goods can then be re-exported to countries making use of Chile tariff reductions Rules of origin play a fundamental role in securing tariff reductions
24
WHAT ARE PRODUCTION LINKAGES
FIRST STEP
The material supply or consumable good is imported to the country with preferential treatment
SUMMARY
Production or
assembly in Chile
FTA Final good
Supplies
Preferencia
Arancelaria
Rules of
Origin
FTAs
Tariff
SECOND STEP The production process is carried out in Chile or Thailand in order to comply with the rules of origin of different trade agreements
THRID STEP
The final good is exported (with Chilean of Thai origin) to other markets
EXAMPLE
Chile ndash Thailand Free Trade
Agreement Potential Market of 566 million
consumers
0 Tariff 0 Tariff
PYMEs
Cooperacioacuten
Servicios
Coherencia Regulatoria
Laboral
Defensa Comercial
Medidas Sanitarias y Fitosanitarias Competitividad
Desarrollo
Temas aduaneros Solucioacuten de Controversias
Reglas de Origen
Inversiones
Obstaacuteculos Teacutecnicos al Comercio
Acceso a Mercados Servicios Financieros
Comercio Electroacutenico
Asuntos Legales Administracioacuten Transparencia Anticorrupcioacuten
Excepciones Disposiciones Finales
Medio Ambiente
Propiedad Intelectual
Empresas del Estado
Entrada Temporal
Compras Puacuteblicas
Telecomunicaciones
CONTEXTO Temas Bajo Negociacioacuten
27
6 FINAL REMARKS
The Agreement will allow both countries Establish economic alliances and reciprocal investments
Simplify sanitary and technical regulations
Standardize customs procedures
Faster addressing trade problems through contact points and
Technical Committees
28
MAIN BENEFITS
THANK YOU
Diego Torres Diez
Head Asia and Oceania Department
General Directorate for International Economic Affairs
April 2016
PACIFIC ALLIANCE FIGURES
6th world economy (28 world GDP)
35 population of LAC (216 millions)
527 Latin American exports
37 GDP and 31 FDI of LAC
Source IMF (World Economic Outlook octubre 2014) y World Factbook-CIA World Investment Report 2014 -UNCTAD Trademap () 2013
ACHIEVEMENTS
Framework Agreement
First Additional Protocol to the Framework Agreement
Aditional dispositions on e-commerce amp telecommunications
Intellectual property projects
Consolidation of MILA biggest Latinamerica stock market
Joint Events on Export Promotion
Visa acilities for business people staying over 180 days
Visa tourist exemption
Student Grants
Joint Cooperation Fund of the Pacific Alliance
Inter-institutional Agreement on pharmaceuticals products
Cooperation Agreement in Tourism
Joint Diplomatic and Trade Offices
Migratory Exchange of Information XX032014
Oficina Comercial
ADDITIONAL PROTOCOL
Tariffs elimination bull 100 Tariffs elimination bull 92 immediately once entry into force bull 8 short and medium term (between 3 and 17 years)
Rules of origin Flexibility single rule and accumulation through PA member in order to the commercial integration
Trade facilitation Electronic Certification of Origin Interoperability of the single window Custom Cooperation Authorized Economic Operator
Sanitary and Phytosanitary Measures Increase transparency in the application of sanitary and phytosanitary measures and strengthen the use of science-based
Technical Barriers to Trade Increase transparency and the regulatory cooperation among other matters
Comprehensive Chapters in Services and Investment
Cross-Border Trade in Services and Investment Protect cross border trade in services the investors and their investments in the countries of the Pacific Alliance Telecomunications Ensure of telecommunications services in the region of the Pacific Alliance under free competition particularly in relation to the dominant suppliers E-Commerce Electronic transactions of goods and services shall be regulated including digital products to ensure their safety and efficiency Maritime Services Grant a non-discriminatory treatment to ships from PA countries in its ports the recognition of the documentation of vessels and crew among others Financial Services Grant legal certainty for investors and service providers from the four countries in the financial sector consolidating the laws of each country
ADDITIONAL PROTOCOL
Government Procurement Facilitate and encourage the participation of MSMEs as well expand the coverage of existing agreements including rules and actions
Dispute Settlement Mechanism address to the prevention or settlement of disputes between the Parties concerning the interpretation implementation or application of the Agreement
ADDITIONAL PROTOCOL
NEXT STEPShellip
1 Free Movement of Capitals 11 Financial integration - Pensions portability along with the persons - Foreign Investment promotion policy - Financial inclusion 12 Infrastructure investment - Regional Investment Fund 13 Public Finance - Mechanism for Exchange of Fiscal Information - Natural Disasters Joint Risk Management
2 Free Movement of Goods amp Services - Homologation administrative norms - Foreign Trade Single Windows interoperability - Consumer Rights Booklet - MoU on Exchange Information about controversy solutions for consumer protection - Mining projects
3 Free Movement of People Pacific Alliance Visa
4 Cooperation aerospace cooperation operations start of the Joint Cooperation Fund of the Pacific Alliance
Contexto negociacioacuten TPP DIRECON
El TPP es el proceso de negociacioacuten econoacutemica y comercial maacutes importante que se desarrolla en el escenario internacional que surge con el objetivo de generar un proceso de integracioacuten en la regioacuten Asia Paciacutefico Negociacioacuten de 12 paiacuteses entre las cuales se encuentran dos de las tres economiacuteas maacutes grandes del mundo Espacio donde se estaacute definiendo la nueva arquitectura del comercio internacional estableciendo las reglas o estaacutendares que lo regiraacuten durante los proacuteximos antildeos Ha sido definido por los miembros de APEC como un elemento central para la construccioacuten de la Zona de Libre de Comercio en el Asia Paciacutefico (regioacuten con los niveles maacutes altos de dinamismo econoacutemico) Respecto de nuestros acuerdos vigentes con paiacuteses TPP seraacute posible completar su cobertura incluyendo temas como servicios compras puacuteblicas e inversiones Beneficios Especiacuteficos Acceso a mercados Compras Puacuteblicas Normas de origen y Acumulacioacuten Facilitacioacuten de Comercio Servicios Inversiones Entrada Temporal de Personas de Negocios Comercio Electroacutenico y Telecomunicaciones Asuntos Ambientales y Laborales Coherencia Regulatoria Otros beneficios
TRANSPACIFIC PARTENERSHIP AGREEMENT (TPP) MEMBER COUNTRIES
TPP is one of the most important trade integration initiatives in the current international scenario Two of the three largest economies in the world are members The agreement will help establish rules for international trade in the Asia Pacific region It has been described by APEC members as a central element for the construction of the Free Trade Area in the Asia Pacific
TRANS PACIFIC PARTNERSHIP (TPP)
38
TPP ndash IMPORTANCE FOR CHILE
Chile will participate in the formulation of rules and standards which will govern international trade during the next century TPP will be a key element to consolidate trade integration between Chile and Asia TPP will position Chile as a business platform to access markets of Latin-America It will enable Chile to enhance coverage of current existing bilateral FTAs
39
CHILE ndash FTA NETWORK
5
THAILAND
HONG KONG
VIETNAM
MALAYSIA
TURKEY
ECUADOR
AUSTRALIA
PERU
CUBA
PANAMA
JAPAN
INDIA
P-4
CHINA
EFTA
SOUTH KOREA
UNITED STATES
EUROPEAN UNION
CENTRAL AMERICA
MEXICO
CANADA
MERCOSUR
VENEZUELA
COLOMBIA
BOLIVIA
INDONESIA
THE PHILIPPINES
25 Trade
Agreements with
64 ECONOMIES
AGREEMENTS IN FORCE
AGREEMENTS UNDER NEGOTIATION
639 OF WORLD POPULATION
877 OF WORLD GDP
6
2 THE ROAD TAKEN IN ASIA
7
Source Studies Department DIRECON-PROCHILE based on data of Central Bank of Chile
2003 US$ 68 billion 2015 US$ 32 billion
TRADE FIGURES EXPORTS BY COUNTRY IN ASIA (MILLIONS US$)
53
17
13
6
5 6
28
35
16
3
9 9
China
Japan
South Korea
India
Taipei China
Other
1909 2425 1080 209 602 56
16671
5458 4132
2004 1484 336
China Japan South Korea India Taipei China Thailand
2003
2015
8
Source Studies Department DIRECON-PROCHILE based on data of Central Bank of Chile
2003 US$ 38 billion 2015 US$ 23 billion
TRADE FIGURES IMPORTS BY COUNTRY IN ASIA (MILLIONS US$)
44
19
14
3
2
18
China
Japan
South Korea
Thailand
India
Other
66 9
9
3
3 10
1642 707 537 109 100 255
14800
2105 1996 735 720 358
China Japan South Korea Thailand India Taipei China
2003
2015
9
Countryperiod
1974-2009 2010 2011 2012 2013 2014 2015 Total
Japan 2817956 340616 1484690 2534160 2524905 593076 184296 10479699
Australia 3522512 100846 119451 151898 561594 134533 17949 4608783
China 84620 376 9754 9187 12336 420 184186 300879
South Korea 40371 - 158380 - 14920 16769 - 230440
New Zealand 158791 - - - - - - 158791
India 27107 - - - - - - 27107
Malaysia 22923 - - - - - - 22923
Taiwan 10578 555 2973 - - - - 14106
Singapore 4352 - - - - - - 4352
Asia Pacific Total
6689210 442393 1775248 2695245 3113755 744798 386431 15847080
ASIA PACIFIC FDI IN CHILE (US$ Thousands)
Source Studies Department DIRECON-PROCHILE base on data of Foreign Investment Promotion Agency january-september 2015
3 CHILE ndash THAILAND TRADE
11
CHILE ndash THAILAND BILATERAL TRADE
NUMBER OF PRODUCTS
NUMBER OF COMPANIES
95 (2003)
164 (2015) raquo
132 (2003)
263 (2015) raquo
288
795
336
735
-
100
200
300
400
500
600
700
800
900
Exportaciones (FOB) Importaciones (CIF)
US$ MM
2014 2015
Source Studies Department DIRECON-PROCHILE based on data of Central Bank of Chile
SHARE IN CHILEAN IMPORTS
2015
43
6
11
34
20
1
14
5
THAI EXPORTS TO CHILE MAIN PRODUCTS
12
Source Studies Department DIRECON-PROCHILE over data of Global Trade Atlas
MAIN EXPORTS TO CHILE FROM THAILAND
(Thousand US$)
HS CODE DESCRIPTION 2015
870421 Diesel powered trucks 287586
870332 Automobiles with diesel
engine 61701
870322 Automobiles with engine cylinder gt 1000 lt 1500 cc
58667
160414 Fish prepared or preserved 34055
842810 Pas or Freight elevator 9093
390120 Polyethylene gravity of 094 or
more 6083
845020 Washing machines with dry
linen capacity gt 10 kg 6029
841810 Combined refrigerator -
freezers 6015
CHILEAN EXPORTS TO THAILAND MAIN PRODUCTS
13
MAIN CHILEAN EXPORTS TO THAILAND
(Thousand US$)
HS CODE DESCRIPTION 2015
470311 Chemical wood pulp 47699
740311 Copper cathodes 46029
030313 Frozen Atlantic Salmon 28877
310420 Potassium Chloride 16369
030314 Frozen Trout 15326
030312 Frozen Pacific Salmon 9842
440710 Coniferous Wood Sawn Sliced Etc
Over 6 Mm Thick 4624
0080610 Fresh Grapes 4356
Source Studies Department DIRECON-PROCHILE over data of Global Trade Atlas
SHARE IN THAILAND IMPORTS
2015
372
25
622
59
625
192
106
34
14
4 CHILE ndash THAILAND FTA CONTENTS amp OPPORTUNITIES
FTAacuteS TIMELINE amp CONTENTS
Disciplines Negotiated
Trade in Goods
Rules of Origin
Custom Procedures and Cooperation
Sanitary and Phytosanitary Measures
Technical Barriers to Trade
Trade Remedies
Trade in Services
Financial Services
Dispute Settlement
Transparency
raquo Joint Study Group
raquo Negotiations began in April 2011
raquo Total of 6 Rounds of negotiations where held
raquo Negotiations concluded successfully in August 2012
raquo FTA was signed early October 2013
raquo FTA in force since November 5th 2015
CHILEAN EXPORTS TO THAILAND CHANGES SINCE FTA ENTERED INTO FORCE
16
Subsector Jan
2015
Cooper 5163406
Salmon and trout 6779878
Fish oil 64673
Leather and fur industries 139110
Dry fruits and vegetables 0
Mussels 53050
Sparkling wine 0
Jan
2016
17447064
8156678
311745
171978
83090
80000
4560
Tariff under FTA
0
0-5
0
0
0-40
10-15
0
US$ Dif Nov 1514
28053867
1674381
236101
184659
172923
16190
1480
THAI EXPORTS TO CHILE CHANGES SINCE FTA ENTERED INTO FORCE
17
Subsector Jan
2015
Transportation Equipment Manufacturing 29283305
Mechanic machinery equipment 3756793
Electric machinery equipment 673988
Jewelery and goldsmith 199696
Plastic raw materials 0
Jan
2016
40623355
4161988
474726
640271
196210
Tariff under FTA
0
0 -5 antildeos
0
0
0
US$ Dif Nov 1514
5965017
2324327
2159999
740078
275471
18
MARKET ACCES OFFERs UNDER THE FTA
Thailand granted Chile the
elimination of 901 of tariff lines in immediate category
THAI OFFER
CATEGORY PRODUCTS
NT0 (inmmediate) 7383
NT0 (O tariff for quotas WTO)
87
NT1 ( Year 3) 142
NT2 (Year 5) 575
SL (Year 8) 102
Total 8300
CHILEAN OFFER
CATEGORY PRODUCTS
Year 0 6989
Year 3 321
Year 5 298
SL (Year 8) 107
Total 7715
On the other hand Chile granted immediate tariff elimination to 906 of tariff lines
TARIFF
NMF FTA
5 Year 0
10 Year 0
30 Year 0
0 Year 0
30 Year 0 - Year 3
30 Year 0
30 Year 0
5 Year 0
40 0 in 2016
10 Year 5
10 Year 0
5 - 10 Year 0
30 Year 0 - Year 5
30 Year 0 - Year 5
27 Year 0 - Year 5
CHILEAN EXPORTS TO THAILAND POTENTIAL NEW EXPORTS (thousand US$)
19 Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Description
441239 Plywood consisting solely of sheets of wood
250100 Salt pure sodium chlorideampsea water
080830 Pears
710691 Silver in unwrought forms
200799 Jamsfruit jelliesfruitnut pureacuteeamppaste
200290 Tomatoes prepared or preserved
190490 Cerealsin grain form
310230 Ammonium nitrate pack weighg gt 10 kg
080520 Mandarins
200979 Apple juice
080212 Almondsfresh or driedshelled or peeled
190110 Prep of cerealsflourstarch
200870 Peaches preserved
080510 Oranges fresh or dried
150910 Olive oil virgin
Chiles exports to
World
Thailands imports
from world
348825 28662
189179 7021
141149 40326
139243 304920
129069 8503
127035 19816
106145 12496
95225 12932
93902 106357
90919 5120
87070 33113
73026 92985
72334 20709
62333 5988
57921 8231
THAI EXPORTS TO CHILE POTENTIAL NEW EXPORTS (thousand US$)
20
Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Description
400122 Technically specified natural rubber
870333 Automobiles with diesel engine 2500 cc
271012 Light petroleum oils and preparations
730890 Structuresparts of structures
030617 Other frozen shrimps and prawns
Hair shampoos
390760 Polyethylene terephthalate
330590 Hair preparations nes
390410 Polyvinyl chloride
390720 Polyethers nes
761510 Table kitchen or other household articles
850710 Lead-acid electric accumulators
841199 Parts of gas turbines nes
330610 Dentifrices
Thailand`s exports to
world
Chiles imports
from world
2670862 27215
1555558 85799
1376742 402119
851605 168678
624041 32211
422492 67538
383853 93937
346316 80249
276977 71610
250879 45834
226498 28908
207511 77064
193332 38427
183200 36079
TARIFF
NMF FTA
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
THAILAND EXPORTS KEY PRODUCTS (thousand US$)
21
Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Product label Exported
Thailands 2015
847170 Computer data storage units 10943347
870421 Diesel powered trucks 6798984
271019 Petroleum oils and preparations 5427876
100630 Rice semi-milled or wholly milled 4078187
847330 Parts and accessories of automatic data
processg machines 3253436
854231 Electronic integrated circuits as
processors and controllers 2865029
400122 Technically specified natural rubber
(TSNR) 2670862
870899 Motor vehicle parts nes 2666050
870323 Automobiles w reciprocatg piston engine
displacg gt 1500 cc to 3000 cc 2611009
Thailands exports to
Chile
Chiles imports
from world
2 123864
287582 928981
5 3598452
1656 70351
4 53079
- 14139
- 27215
2045 554180
602 1660996
NMF FTA
6 Year 0
6 Year 0
6 Year 0
6 Year 5
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
Chapter on Rules of Origin meets the standards that Chile has negotiated in recent agreements Committees regarding Technical Barriers to Trade (TBT ) and Sanitary and Phytosanitary Measures (SPS) are included Regarding the chapter on services will grant new opportunities in trade in services The inclusion of a chapter on financial services enable financial institutions in Chile and Thailand obtain a non- discriminatory treatment and to establish andor acquire financial institutions in both financial markets The Agreement also includes a Cooperation chapter that will allow closer cooperation relations between the public private and academic spheres in areas of mutual interest Commitment of start negotiation of an investment chapter
22
CHILE ndash THAILAND FTA
23
5 PRODUCTION LINKAGES
A new step forward in Chilean trade policy designed to leverage business opportunities generated by Chilersquos network of trade agreements Consists of business alliances with trading partners for in-country goods production using imported supplies Production linkages involve processing partner-country materials or parts in Chile Finished value-added goods can then be re-exported to countries making use of Chile tariff reductions Rules of origin play a fundamental role in securing tariff reductions
24
WHAT ARE PRODUCTION LINKAGES
FIRST STEP
The material supply or consumable good is imported to the country with preferential treatment
SUMMARY
Production or
assembly in Chile
FTA Final good
Supplies
Preferencia
Arancelaria
Rules of
Origin
FTAs
Tariff
SECOND STEP The production process is carried out in Chile or Thailand in order to comply with the rules of origin of different trade agreements
THRID STEP
The final good is exported (with Chilean of Thai origin) to other markets
EXAMPLE
Chile ndash Thailand Free Trade
Agreement Potential Market of 566 million
consumers
0 Tariff 0 Tariff
PYMEs
Cooperacioacuten
Servicios
Coherencia Regulatoria
Laboral
Defensa Comercial
Medidas Sanitarias y Fitosanitarias Competitividad
Desarrollo
Temas aduaneros Solucioacuten de Controversias
Reglas de Origen
Inversiones
Obstaacuteculos Teacutecnicos al Comercio
Acceso a Mercados Servicios Financieros
Comercio Electroacutenico
Asuntos Legales Administracioacuten Transparencia Anticorrupcioacuten
Excepciones Disposiciones Finales
Medio Ambiente
Propiedad Intelectual
Empresas del Estado
Entrada Temporal
Compras Puacuteblicas
Telecomunicaciones
CONTEXTO Temas Bajo Negociacioacuten
27
6 FINAL REMARKS
The Agreement will allow both countries Establish economic alliances and reciprocal investments
Simplify sanitary and technical regulations
Standardize customs procedures
Faster addressing trade problems through contact points and
Technical Committees
28
MAIN BENEFITS
THANK YOU
Diego Torres Diez
Head Asia and Oceania Department
General Directorate for International Economic Affairs
April 2016
PACIFIC ALLIANCE FIGURES
6th world economy (28 world GDP)
35 population of LAC (216 millions)
527 Latin American exports
37 GDP and 31 FDI of LAC
Source IMF (World Economic Outlook octubre 2014) y World Factbook-CIA World Investment Report 2014 -UNCTAD Trademap () 2013
ACHIEVEMENTS
Framework Agreement
First Additional Protocol to the Framework Agreement
Aditional dispositions on e-commerce amp telecommunications
Intellectual property projects
Consolidation of MILA biggest Latinamerica stock market
Joint Events on Export Promotion
Visa acilities for business people staying over 180 days
Visa tourist exemption
Student Grants
Joint Cooperation Fund of the Pacific Alliance
Inter-institutional Agreement on pharmaceuticals products
Cooperation Agreement in Tourism
Joint Diplomatic and Trade Offices
Migratory Exchange of Information XX032014
Oficina Comercial
ADDITIONAL PROTOCOL
Tariffs elimination bull 100 Tariffs elimination bull 92 immediately once entry into force bull 8 short and medium term (between 3 and 17 years)
Rules of origin Flexibility single rule and accumulation through PA member in order to the commercial integration
Trade facilitation Electronic Certification of Origin Interoperability of the single window Custom Cooperation Authorized Economic Operator
Sanitary and Phytosanitary Measures Increase transparency in the application of sanitary and phytosanitary measures and strengthen the use of science-based
Technical Barriers to Trade Increase transparency and the regulatory cooperation among other matters
Comprehensive Chapters in Services and Investment
Cross-Border Trade in Services and Investment Protect cross border trade in services the investors and their investments in the countries of the Pacific Alliance Telecomunications Ensure of telecommunications services in the region of the Pacific Alliance under free competition particularly in relation to the dominant suppliers E-Commerce Electronic transactions of goods and services shall be regulated including digital products to ensure their safety and efficiency Maritime Services Grant a non-discriminatory treatment to ships from PA countries in its ports the recognition of the documentation of vessels and crew among others Financial Services Grant legal certainty for investors and service providers from the four countries in the financial sector consolidating the laws of each country
ADDITIONAL PROTOCOL
Government Procurement Facilitate and encourage the participation of MSMEs as well expand the coverage of existing agreements including rules and actions
Dispute Settlement Mechanism address to the prevention or settlement of disputes between the Parties concerning the interpretation implementation or application of the Agreement
ADDITIONAL PROTOCOL
NEXT STEPShellip
1 Free Movement of Capitals 11 Financial integration - Pensions portability along with the persons - Foreign Investment promotion policy - Financial inclusion 12 Infrastructure investment - Regional Investment Fund 13 Public Finance - Mechanism for Exchange of Fiscal Information - Natural Disasters Joint Risk Management
2 Free Movement of Goods amp Services - Homologation administrative norms - Foreign Trade Single Windows interoperability - Consumer Rights Booklet - MoU on Exchange Information about controversy solutions for consumer protection - Mining projects
3 Free Movement of People Pacific Alliance Visa
4 Cooperation aerospace cooperation operations start of the Joint Cooperation Fund of the Pacific Alliance
Contexto negociacioacuten TPP DIRECON
El TPP es el proceso de negociacioacuten econoacutemica y comercial maacutes importante que se desarrolla en el escenario internacional que surge con el objetivo de generar un proceso de integracioacuten en la regioacuten Asia Paciacutefico Negociacioacuten de 12 paiacuteses entre las cuales se encuentran dos de las tres economiacuteas maacutes grandes del mundo Espacio donde se estaacute definiendo la nueva arquitectura del comercio internacional estableciendo las reglas o estaacutendares que lo regiraacuten durante los proacuteximos antildeos Ha sido definido por los miembros de APEC como un elemento central para la construccioacuten de la Zona de Libre de Comercio en el Asia Paciacutefico (regioacuten con los niveles maacutes altos de dinamismo econoacutemico) Respecto de nuestros acuerdos vigentes con paiacuteses TPP seraacute posible completar su cobertura incluyendo temas como servicios compras puacuteblicas e inversiones Beneficios Especiacuteficos Acceso a mercados Compras Puacuteblicas Normas de origen y Acumulacioacuten Facilitacioacuten de Comercio Servicios Inversiones Entrada Temporal de Personas de Negocios Comercio Electroacutenico y Telecomunicaciones Asuntos Ambientales y Laborales Coherencia Regulatoria Otros beneficios
TRANSPACIFIC PARTENERSHIP AGREEMENT (TPP) MEMBER COUNTRIES
TPP is one of the most important trade integration initiatives in the current international scenario Two of the three largest economies in the world are members The agreement will help establish rules for international trade in the Asia Pacific region It has been described by APEC members as a central element for the construction of the Free Trade Area in the Asia Pacific
TRANS PACIFIC PARTNERSHIP (TPP)
38
TPP ndash IMPORTANCE FOR CHILE
Chile will participate in the formulation of rules and standards which will govern international trade during the next century TPP will be a key element to consolidate trade integration between Chile and Asia TPP will position Chile as a business platform to access markets of Latin-America It will enable Chile to enhance coverage of current existing bilateral FTAs
39
6
2 THE ROAD TAKEN IN ASIA
7
Source Studies Department DIRECON-PROCHILE based on data of Central Bank of Chile
2003 US$ 68 billion 2015 US$ 32 billion
TRADE FIGURES EXPORTS BY COUNTRY IN ASIA (MILLIONS US$)
53
17
13
6
5 6
28
35
16
3
9 9
China
Japan
South Korea
India
Taipei China
Other
1909 2425 1080 209 602 56
16671
5458 4132
2004 1484 336
China Japan South Korea India Taipei China Thailand
2003
2015
8
Source Studies Department DIRECON-PROCHILE based on data of Central Bank of Chile
2003 US$ 38 billion 2015 US$ 23 billion
TRADE FIGURES IMPORTS BY COUNTRY IN ASIA (MILLIONS US$)
44
19
14
3
2
18
China
Japan
South Korea
Thailand
India
Other
66 9
9
3
3 10
1642 707 537 109 100 255
14800
2105 1996 735 720 358
China Japan South Korea Thailand India Taipei China
2003
2015
9
Countryperiod
1974-2009 2010 2011 2012 2013 2014 2015 Total
Japan 2817956 340616 1484690 2534160 2524905 593076 184296 10479699
Australia 3522512 100846 119451 151898 561594 134533 17949 4608783
China 84620 376 9754 9187 12336 420 184186 300879
South Korea 40371 - 158380 - 14920 16769 - 230440
New Zealand 158791 - - - - - - 158791
India 27107 - - - - - - 27107
Malaysia 22923 - - - - - - 22923
Taiwan 10578 555 2973 - - - - 14106
Singapore 4352 - - - - - - 4352
Asia Pacific Total
6689210 442393 1775248 2695245 3113755 744798 386431 15847080
ASIA PACIFIC FDI IN CHILE (US$ Thousands)
Source Studies Department DIRECON-PROCHILE base on data of Foreign Investment Promotion Agency january-september 2015
3 CHILE ndash THAILAND TRADE
11
CHILE ndash THAILAND BILATERAL TRADE
NUMBER OF PRODUCTS
NUMBER OF COMPANIES
95 (2003)
164 (2015) raquo
132 (2003)
263 (2015) raquo
288
795
336
735
-
100
200
300
400
500
600
700
800
900
Exportaciones (FOB) Importaciones (CIF)
US$ MM
2014 2015
Source Studies Department DIRECON-PROCHILE based on data of Central Bank of Chile
SHARE IN CHILEAN IMPORTS
2015
43
6
11
34
20
1
14
5
THAI EXPORTS TO CHILE MAIN PRODUCTS
12
Source Studies Department DIRECON-PROCHILE over data of Global Trade Atlas
MAIN EXPORTS TO CHILE FROM THAILAND
(Thousand US$)
HS CODE DESCRIPTION 2015
870421 Diesel powered trucks 287586
870332 Automobiles with diesel
engine 61701
870322 Automobiles with engine cylinder gt 1000 lt 1500 cc
58667
160414 Fish prepared or preserved 34055
842810 Pas or Freight elevator 9093
390120 Polyethylene gravity of 094 or
more 6083
845020 Washing machines with dry
linen capacity gt 10 kg 6029
841810 Combined refrigerator -
freezers 6015
CHILEAN EXPORTS TO THAILAND MAIN PRODUCTS
13
MAIN CHILEAN EXPORTS TO THAILAND
(Thousand US$)
HS CODE DESCRIPTION 2015
470311 Chemical wood pulp 47699
740311 Copper cathodes 46029
030313 Frozen Atlantic Salmon 28877
310420 Potassium Chloride 16369
030314 Frozen Trout 15326
030312 Frozen Pacific Salmon 9842
440710 Coniferous Wood Sawn Sliced Etc
Over 6 Mm Thick 4624
0080610 Fresh Grapes 4356
Source Studies Department DIRECON-PROCHILE over data of Global Trade Atlas
SHARE IN THAILAND IMPORTS
2015
372
25
622
59
625
192
106
34
14
4 CHILE ndash THAILAND FTA CONTENTS amp OPPORTUNITIES
FTAacuteS TIMELINE amp CONTENTS
Disciplines Negotiated
Trade in Goods
Rules of Origin
Custom Procedures and Cooperation
Sanitary and Phytosanitary Measures
Technical Barriers to Trade
Trade Remedies
Trade in Services
Financial Services
Dispute Settlement
Transparency
raquo Joint Study Group
raquo Negotiations began in April 2011
raquo Total of 6 Rounds of negotiations where held
raquo Negotiations concluded successfully in August 2012
raquo FTA was signed early October 2013
raquo FTA in force since November 5th 2015
CHILEAN EXPORTS TO THAILAND CHANGES SINCE FTA ENTERED INTO FORCE
16
Subsector Jan
2015
Cooper 5163406
Salmon and trout 6779878
Fish oil 64673
Leather and fur industries 139110
Dry fruits and vegetables 0
Mussels 53050
Sparkling wine 0
Jan
2016
17447064
8156678
311745
171978
83090
80000
4560
Tariff under FTA
0
0-5
0
0
0-40
10-15
0
US$ Dif Nov 1514
28053867
1674381
236101
184659
172923
16190
1480
THAI EXPORTS TO CHILE CHANGES SINCE FTA ENTERED INTO FORCE
17
Subsector Jan
2015
Transportation Equipment Manufacturing 29283305
Mechanic machinery equipment 3756793
Electric machinery equipment 673988
Jewelery and goldsmith 199696
Plastic raw materials 0
Jan
2016
40623355
4161988
474726
640271
196210
Tariff under FTA
0
0 -5 antildeos
0
0
0
US$ Dif Nov 1514
5965017
2324327
2159999
740078
275471
18
MARKET ACCES OFFERs UNDER THE FTA
Thailand granted Chile the
elimination of 901 of tariff lines in immediate category
THAI OFFER
CATEGORY PRODUCTS
NT0 (inmmediate) 7383
NT0 (O tariff for quotas WTO)
87
NT1 ( Year 3) 142
NT2 (Year 5) 575
SL (Year 8) 102
Total 8300
CHILEAN OFFER
CATEGORY PRODUCTS
Year 0 6989
Year 3 321
Year 5 298
SL (Year 8) 107
Total 7715
On the other hand Chile granted immediate tariff elimination to 906 of tariff lines
TARIFF
NMF FTA
5 Year 0
10 Year 0
30 Year 0
0 Year 0
30 Year 0 - Year 3
30 Year 0
30 Year 0
5 Year 0
40 0 in 2016
10 Year 5
10 Year 0
5 - 10 Year 0
30 Year 0 - Year 5
30 Year 0 - Year 5
27 Year 0 - Year 5
CHILEAN EXPORTS TO THAILAND POTENTIAL NEW EXPORTS (thousand US$)
19 Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Description
441239 Plywood consisting solely of sheets of wood
250100 Salt pure sodium chlorideampsea water
080830 Pears
710691 Silver in unwrought forms
200799 Jamsfruit jelliesfruitnut pureacuteeamppaste
200290 Tomatoes prepared or preserved
190490 Cerealsin grain form
310230 Ammonium nitrate pack weighg gt 10 kg
080520 Mandarins
200979 Apple juice
080212 Almondsfresh or driedshelled or peeled
190110 Prep of cerealsflourstarch
200870 Peaches preserved
080510 Oranges fresh or dried
150910 Olive oil virgin
Chiles exports to
World
Thailands imports
from world
348825 28662
189179 7021
141149 40326
139243 304920
129069 8503
127035 19816
106145 12496
95225 12932
93902 106357
90919 5120
87070 33113
73026 92985
72334 20709
62333 5988
57921 8231
THAI EXPORTS TO CHILE POTENTIAL NEW EXPORTS (thousand US$)
20
Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Description
400122 Technically specified natural rubber
870333 Automobiles with diesel engine 2500 cc
271012 Light petroleum oils and preparations
730890 Structuresparts of structures
030617 Other frozen shrimps and prawns
Hair shampoos
390760 Polyethylene terephthalate
330590 Hair preparations nes
390410 Polyvinyl chloride
390720 Polyethers nes
761510 Table kitchen or other household articles
850710 Lead-acid electric accumulators
841199 Parts of gas turbines nes
330610 Dentifrices
Thailand`s exports to
world
Chiles imports
from world
2670862 27215
1555558 85799
1376742 402119
851605 168678
624041 32211
422492 67538
383853 93937
346316 80249
276977 71610
250879 45834
226498 28908
207511 77064
193332 38427
183200 36079
TARIFF
NMF FTA
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
THAILAND EXPORTS KEY PRODUCTS (thousand US$)
21
Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Product label Exported
Thailands 2015
847170 Computer data storage units 10943347
870421 Diesel powered trucks 6798984
271019 Petroleum oils and preparations 5427876
100630 Rice semi-milled or wholly milled 4078187
847330 Parts and accessories of automatic data
processg machines 3253436
854231 Electronic integrated circuits as
processors and controllers 2865029
400122 Technically specified natural rubber
(TSNR) 2670862
870899 Motor vehicle parts nes 2666050
870323 Automobiles w reciprocatg piston engine
displacg gt 1500 cc to 3000 cc 2611009
Thailands exports to
Chile
Chiles imports
from world
2 123864
287582 928981
5 3598452
1656 70351
4 53079
- 14139
- 27215
2045 554180
602 1660996
NMF FTA
6 Year 0
6 Year 0
6 Year 0
6 Year 5
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
Chapter on Rules of Origin meets the standards that Chile has negotiated in recent agreements Committees regarding Technical Barriers to Trade (TBT ) and Sanitary and Phytosanitary Measures (SPS) are included Regarding the chapter on services will grant new opportunities in trade in services The inclusion of a chapter on financial services enable financial institutions in Chile and Thailand obtain a non- discriminatory treatment and to establish andor acquire financial institutions in both financial markets The Agreement also includes a Cooperation chapter that will allow closer cooperation relations between the public private and academic spheres in areas of mutual interest Commitment of start negotiation of an investment chapter
22
CHILE ndash THAILAND FTA
23
5 PRODUCTION LINKAGES
A new step forward in Chilean trade policy designed to leverage business opportunities generated by Chilersquos network of trade agreements Consists of business alliances with trading partners for in-country goods production using imported supplies Production linkages involve processing partner-country materials or parts in Chile Finished value-added goods can then be re-exported to countries making use of Chile tariff reductions Rules of origin play a fundamental role in securing tariff reductions
24
WHAT ARE PRODUCTION LINKAGES
FIRST STEP
The material supply or consumable good is imported to the country with preferential treatment
SUMMARY
Production or
assembly in Chile
FTA Final good
Supplies
Preferencia
Arancelaria
Rules of
Origin
FTAs
Tariff
SECOND STEP The production process is carried out in Chile or Thailand in order to comply with the rules of origin of different trade agreements
THRID STEP
The final good is exported (with Chilean of Thai origin) to other markets
EXAMPLE
Chile ndash Thailand Free Trade
Agreement Potential Market of 566 million
consumers
0 Tariff 0 Tariff
PYMEs
Cooperacioacuten
Servicios
Coherencia Regulatoria
Laboral
Defensa Comercial
Medidas Sanitarias y Fitosanitarias Competitividad
Desarrollo
Temas aduaneros Solucioacuten de Controversias
Reglas de Origen
Inversiones
Obstaacuteculos Teacutecnicos al Comercio
Acceso a Mercados Servicios Financieros
Comercio Electroacutenico
Asuntos Legales Administracioacuten Transparencia Anticorrupcioacuten
Excepciones Disposiciones Finales
Medio Ambiente
Propiedad Intelectual
Empresas del Estado
Entrada Temporal
Compras Puacuteblicas
Telecomunicaciones
CONTEXTO Temas Bajo Negociacioacuten
27
6 FINAL REMARKS
The Agreement will allow both countries Establish economic alliances and reciprocal investments
Simplify sanitary and technical regulations
Standardize customs procedures
Faster addressing trade problems through contact points and
Technical Committees
28
MAIN BENEFITS
THANK YOU
Diego Torres Diez
Head Asia and Oceania Department
General Directorate for International Economic Affairs
April 2016
PACIFIC ALLIANCE FIGURES
6th world economy (28 world GDP)
35 population of LAC (216 millions)
527 Latin American exports
37 GDP and 31 FDI of LAC
Source IMF (World Economic Outlook octubre 2014) y World Factbook-CIA World Investment Report 2014 -UNCTAD Trademap () 2013
ACHIEVEMENTS
Framework Agreement
First Additional Protocol to the Framework Agreement
Aditional dispositions on e-commerce amp telecommunications
Intellectual property projects
Consolidation of MILA biggest Latinamerica stock market
Joint Events on Export Promotion
Visa acilities for business people staying over 180 days
Visa tourist exemption
Student Grants
Joint Cooperation Fund of the Pacific Alliance
Inter-institutional Agreement on pharmaceuticals products
Cooperation Agreement in Tourism
Joint Diplomatic and Trade Offices
Migratory Exchange of Information XX032014
Oficina Comercial
ADDITIONAL PROTOCOL
Tariffs elimination bull 100 Tariffs elimination bull 92 immediately once entry into force bull 8 short and medium term (between 3 and 17 years)
Rules of origin Flexibility single rule and accumulation through PA member in order to the commercial integration
Trade facilitation Electronic Certification of Origin Interoperability of the single window Custom Cooperation Authorized Economic Operator
Sanitary and Phytosanitary Measures Increase transparency in the application of sanitary and phytosanitary measures and strengthen the use of science-based
Technical Barriers to Trade Increase transparency and the regulatory cooperation among other matters
Comprehensive Chapters in Services and Investment
Cross-Border Trade in Services and Investment Protect cross border trade in services the investors and their investments in the countries of the Pacific Alliance Telecomunications Ensure of telecommunications services in the region of the Pacific Alliance under free competition particularly in relation to the dominant suppliers E-Commerce Electronic transactions of goods and services shall be regulated including digital products to ensure their safety and efficiency Maritime Services Grant a non-discriminatory treatment to ships from PA countries in its ports the recognition of the documentation of vessels and crew among others Financial Services Grant legal certainty for investors and service providers from the four countries in the financial sector consolidating the laws of each country
ADDITIONAL PROTOCOL
Government Procurement Facilitate and encourage the participation of MSMEs as well expand the coverage of existing agreements including rules and actions
Dispute Settlement Mechanism address to the prevention or settlement of disputes between the Parties concerning the interpretation implementation or application of the Agreement
ADDITIONAL PROTOCOL
NEXT STEPShellip
1 Free Movement of Capitals 11 Financial integration - Pensions portability along with the persons - Foreign Investment promotion policy - Financial inclusion 12 Infrastructure investment - Regional Investment Fund 13 Public Finance - Mechanism for Exchange of Fiscal Information - Natural Disasters Joint Risk Management
2 Free Movement of Goods amp Services - Homologation administrative norms - Foreign Trade Single Windows interoperability - Consumer Rights Booklet - MoU on Exchange Information about controversy solutions for consumer protection - Mining projects
3 Free Movement of People Pacific Alliance Visa
4 Cooperation aerospace cooperation operations start of the Joint Cooperation Fund of the Pacific Alliance
Contexto negociacioacuten TPP DIRECON
El TPP es el proceso de negociacioacuten econoacutemica y comercial maacutes importante que se desarrolla en el escenario internacional que surge con el objetivo de generar un proceso de integracioacuten en la regioacuten Asia Paciacutefico Negociacioacuten de 12 paiacuteses entre las cuales se encuentran dos de las tres economiacuteas maacutes grandes del mundo Espacio donde se estaacute definiendo la nueva arquitectura del comercio internacional estableciendo las reglas o estaacutendares que lo regiraacuten durante los proacuteximos antildeos Ha sido definido por los miembros de APEC como un elemento central para la construccioacuten de la Zona de Libre de Comercio en el Asia Paciacutefico (regioacuten con los niveles maacutes altos de dinamismo econoacutemico) Respecto de nuestros acuerdos vigentes con paiacuteses TPP seraacute posible completar su cobertura incluyendo temas como servicios compras puacuteblicas e inversiones Beneficios Especiacuteficos Acceso a mercados Compras Puacuteblicas Normas de origen y Acumulacioacuten Facilitacioacuten de Comercio Servicios Inversiones Entrada Temporal de Personas de Negocios Comercio Electroacutenico y Telecomunicaciones Asuntos Ambientales y Laborales Coherencia Regulatoria Otros beneficios
TRANSPACIFIC PARTENERSHIP AGREEMENT (TPP) MEMBER COUNTRIES
TPP is one of the most important trade integration initiatives in the current international scenario Two of the three largest economies in the world are members The agreement will help establish rules for international trade in the Asia Pacific region It has been described by APEC members as a central element for the construction of the Free Trade Area in the Asia Pacific
TRANS PACIFIC PARTNERSHIP (TPP)
38
TPP ndash IMPORTANCE FOR CHILE
Chile will participate in the formulation of rules and standards which will govern international trade during the next century TPP will be a key element to consolidate trade integration between Chile and Asia TPP will position Chile as a business platform to access markets of Latin-America It will enable Chile to enhance coverage of current existing bilateral FTAs
39
7
Source Studies Department DIRECON-PROCHILE based on data of Central Bank of Chile
2003 US$ 68 billion 2015 US$ 32 billion
TRADE FIGURES EXPORTS BY COUNTRY IN ASIA (MILLIONS US$)
53
17
13
6
5 6
28
35
16
3
9 9
China
Japan
South Korea
India
Taipei China
Other
1909 2425 1080 209 602 56
16671
5458 4132
2004 1484 336
China Japan South Korea India Taipei China Thailand
2003
2015
8
Source Studies Department DIRECON-PROCHILE based on data of Central Bank of Chile
2003 US$ 38 billion 2015 US$ 23 billion
TRADE FIGURES IMPORTS BY COUNTRY IN ASIA (MILLIONS US$)
44
19
14
3
2
18
China
Japan
South Korea
Thailand
India
Other
66 9
9
3
3 10
1642 707 537 109 100 255
14800
2105 1996 735 720 358
China Japan South Korea Thailand India Taipei China
2003
2015
9
Countryperiod
1974-2009 2010 2011 2012 2013 2014 2015 Total
Japan 2817956 340616 1484690 2534160 2524905 593076 184296 10479699
Australia 3522512 100846 119451 151898 561594 134533 17949 4608783
China 84620 376 9754 9187 12336 420 184186 300879
South Korea 40371 - 158380 - 14920 16769 - 230440
New Zealand 158791 - - - - - - 158791
India 27107 - - - - - - 27107
Malaysia 22923 - - - - - - 22923
Taiwan 10578 555 2973 - - - - 14106
Singapore 4352 - - - - - - 4352
Asia Pacific Total
6689210 442393 1775248 2695245 3113755 744798 386431 15847080
ASIA PACIFIC FDI IN CHILE (US$ Thousands)
Source Studies Department DIRECON-PROCHILE base on data of Foreign Investment Promotion Agency january-september 2015
3 CHILE ndash THAILAND TRADE
11
CHILE ndash THAILAND BILATERAL TRADE
NUMBER OF PRODUCTS
NUMBER OF COMPANIES
95 (2003)
164 (2015) raquo
132 (2003)
263 (2015) raquo
288
795
336
735
-
100
200
300
400
500
600
700
800
900
Exportaciones (FOB) Importaciones (CIF)
US$ MM
2014 2015
Source Studies Department DIRECON-PROCHILE based on data of Central Bank of Chile
SHARE IN CHILEAN IMPORTS
2015
43
6
11
34
20
1
14
5
THAI EXPORTS TO CHILE MAIN PRODUCTS
12
Source Studies Department DIRECON-PROCHILE over data of Global Trade Atlas
MAIN EXPORTS TO CHILE FROM THAILAND
(Thousand US$)
HS CODE DESCRIPTION 2015
870421 Diesel powered trucks 287586
870332 Automobiles with diesel
engine 61701
870322 Automobiles with engine cylinder gt 1000 lt 1500 cc
58667
160414 Fish prepared or preserved 34055
842810 Pas or Freight elevator 9093
390120 Polyethylene gravity of 094 or
more 6083
845020 Washing machines with dry
linen capacity gt 10 kg 6029
841810 Combined refrigerator -
freezers 6015
CHILEAN EXPORTS TO THAILAND MAIN PRODUCTS
13
MAIN CHILEAN EXPORTS TO THAILAND
(Thousand US$)
HS CODE DESCRIPTION 2015
470311 Chemical wood pulp 47699
740311 Copper cathodes 46029
030313 Frozen Atlantic Salmon 28877
310420 Potassium Chloride 16369
030314 Frozen Trout 15326
030312 Frozen Pacific Salmon 9842
440710 Coniferous Wood Sawn Sliced Etc
Over 6 Mm Thick 4624
0080610 Fresh Grapes 4356
Source Studies Department DIRECON-PROCHILE over data of Global Trade Atlas
SHARE IN THAILAND IMPORTS
2015
372
25
622
59
625
192
106
34
14
4 CHILE ndash THAILAND FTA CONTENTS amp OPPORTUNITIES
FTAacuteS TIMELINE amp CONTENTS
Disciplines Negotiated
Trade in Goods
Rules of Origin
Custom Procedures and Cooperation
Sanitary and Phytosanitary Measures
Technical Barriers to Trade
Trade Remedies
Trade in Services
Financial Services
Dispute Settlement
Transparency
raquo Joint Study Group
raquo Negotiations began in April 2011
raquo Total of 6 Rounds of negotiations where held
raquo Negotiations concluded successfully in August 2012
raquo FTA was signed early October 2013
raquo FTA in force since November 5th 2015
CHILEAN EXPORTS TO THAILAND CHANGES SINCE FTA ENTERED INTO FORCE
16
Subsector Jan
2015
Cooper 5163406
Salmon and trout 6779878
Fish oil 64673
Leather and fur industries 139110
Dry fruits and vegetables 0
Mussels 53050
Sparkling wine 0
Jan
2016
17447064
8156678
311745
171978
83090
80000
4560
Tariff under FTA
0
0-5
0
0
0-40
10-15
0
US$ Dif Nov 1514
28053867
1674381
236101
184659
172923
16190
1480
THAI EXPORTS TO CHILE CHANGES SINCE FTA ENTERED INTO FORCE
17
Subsector Jan
2015
Transportation Equipment Manufacturing 29283305
Mechanic machinery equipment 3756793
Electric machinery equipment 673988
Jewelery and goldsmith 199696
Plastic raw materials 0
Jan
2016
40623355
4161988
474726
640271
196210
Tariff under FTA
0
0 -5 antildeos
0
0
0
US$ Dif Nov 1514
5965017
2324327
2159999
740078
275471
18
MARKET ACCES OFFERs UNDER THE FTA
Thailand granted Chile the
elimination of 901 of tariff lines in immediate category
THAI OFFER
CATEGORY PRODUCTS
NT0 (inmmediate) 7383
NT0 (O tariff for quotas WTO)
87
NT1 ( Year 3) 142
NT2 (Year 5) 575
SL (Year 8) 102
Total 8300
CHILEAN OFFER
CATEGORY PRODUCTS
Year 0 6989
Year 3 321
Year 5 298
SL (Year 8) 107
Total 7715
On the other hand Chile granted immediate tariff elimination to 906 of tariff lines
TARIFF
NMF FTA
5 Year 0
10 Year 0
30 Year 0
0 Year 0
30 Year 0 - Year 3
30 Year 0
30 Year 0
5 Year 0
40 0 in 2016
10 Year 5
10 Year 0
5 - 10 Year 0
30 Year 0 - Year 5
30 Year 0 - Year 5
27 Year 0 - Year 5
CHILEAN EXPORTS TO THAILAND POTENTIAL NEW EXPORTS (thousand US$)
19 Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Description
441239 Plywood consisting solely of sheets of wood
250100 Salt pure sodium chlorideampsea water
080830 Pears
710691 Silver in unwrought forms
200799 Jamsfruit jelliesfruitnut pureacuteeamppaste
200290 Tomatoes prepared or preserved
190490 Cerealsin grain form
310230 Ammonium nitrate pack weighg gt 10 kg
080520 Mandarins
200979 Apple juice
080212 Almondsfresh or driedshelled or peeled
190110 Prep of cerealsflourstarch
200870 Peaches preserved
080510 Oranges fresh or dried
150910 Olive oil virgin
Chiles exports to
World
Thailands imports
from world
348825 28662
189179 7021
141149 40326
139243 304920
129069 8503
127035 19816
106145 12496
95225 12932
93902 106357
90919 5120
87070 33113
73026 92985
72334 20709
62333 5988
57921 8231
THAI EXPORTS TO CHILE POTENTIAL NEW EXPORTS (thousand US$)
20
Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Description
400122 Technically specified natural rubber
870333 Automobiles with diesel engine 2500 cc
271012 Light petroleum oils and preparations
730890 Structuresparts of structures
030617 Other frozen shrimps and prawns
Hair shampoos
390760 Polyethylene terephthalate
330590 Hair preparations nes
390410 Polyvinyl chloride
390720 Polyethers nes
761510 Table kitchen or other household articles
850710 Lead-acid electric accumulators
841199 Parts of gas turbines nes
330610 Dentifrices
Thailand`s exports to
world
Chiles imports
from world
2670862 27215
1555558 85799
1376742 402119
851605 168678
624041 32211
422492 67538
383853 93937
346316 80249
276977 71610
250879 45834
226498 28908
207511 77064
193332 38427
183200 36079
TARIFF
NMF FTA
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
THAILAND EXPORTS KEY PRODUCTS (thousand US$)
21
Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Product label Exported
Thailands 2015
847170 Computer data storage units 10943347
870421 Diesel powered trucks 6798984
271019 Petroleum oils and preparations 5427876
100630 Rice semi-milled or wholly milled 4078187
847330 Parts and accessories of automatic data
processg machines 3253436
854231 Electronic integrated circuits as
processors and controllers 2865029
400122 Technically specified natural rubber
(TSNR) 2670862
870899 Motor vehicle parts nes 2666050
870323 Automobiles w reciprocatg piston engine
displacg gt 1500 cc to 3000 cc 2611009
Thailands exports to
Chile
Chiles imports
from world
2 123864
287582 928981
5 3598452
1656 70351
4 53079
- 14139
- 27215
2045 554180
602 1660996
NMF FTA
6 Year 0
6 Year 0
6 Year 0
6 Year 5
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
Chapter on Rules of Origin meets the standards that Chile has negotiated in recent agreements Committees regarding Technical Barriers to Trade (TBT ) and Sanitary and Phytosanitary Measures (SPS) are included Regarding the chapter on services will grant new opportunities in trade in services The inclusion of a chapter on financial services enable financial institutions in Chile and Thailand obtain a non- discriminatory treatment and to establish andor acquire financial institutions in both financial markets The Agreement also includes a Cooperation chapter that will allow closer cooperation relations between the public private and academic spheres in areas of mutual interest Commitment of start negotiation of an investment chapter
22
CHILE ndash THAILAND FTA
23
5 PRODUCTION LINKAGES
A new step forward in Chilean trade policy designed to leverage business opportunities generated by Chilersquos network of trade agreements Consists of business alliances with trading partners for in-country goods production using imported supplies Production linkages involve processing partner-country materials or parts in Chile Finished value-added goods can then be re-exported to countries making use of Chile tariff reductions Rules of origin play a fundamental role in securing tariff reductions
24
WHAT ARE PRODUCTION LINKAGES
FIRST STEP
The material supply or consumable good is imported to the country with preferential treatment
SUMMARY
Production or
assembly in Chile
FTA Final good
Supplies
Preferencia
Arancelaria
Rules of
Origin
FTAs
Tariff
SECOND STEP The production process is carried out in Chile or Thailand in order to comply with the rules of origin of different trade agreements
THRID STEP
The final good is exported (with Chilean of Thai origin) to other markets
EXAMPLE
Chile ndash Thailand Free Trade
Agreement Potential Market of 566 million
consumers
0 Tariff 0 Tariff
PYMEs
Cooperacioacuten
Servicios
Coherencia Regulatoria
Laboral
Defensa Comercial
Medidas Sanitarias y Fitosanitarias Competitividad
Desarrollo
Temas aduaneros Solucioacuten de Controversias
Reglas de Origen
Inversiones
Obstaacuteculos Teacutecnicos al Comercio
Acceso a Mercados Servicios Financieros
Comercio Electroacutenico
Asuntos Legales Administracioacuten Transparencia Anticorrupcioacuten
Excepciones Disposiciones Finales
Medio Ambiente
Propiedad Intelectual
Empresas del Estado
Entrada Temporal
Compras Puacuteblicas
Telecomunicaciones
CONTEXTO Temas Bajo Negociacioacuten
27
6 FINAL REMARKS
The Agreement will allow both countries Establish economic alliances and reciprocal investments
Simplify sanitary and technical regulations
Standardize customs procedures
Faster addressing trade problems through contact points and
Technical Committees
28
MAIN BENEFITS
THANK YOU
Diego Torres Diez
Head Asia and Oceania Department
General Directorate for International Economic Affairs
April 2016
PACIFIC ALLIANCE FIGURES
6th world economy (28 world GDP)
35 population of LAC (216 millions)
527 Latin American exports
37 GDP and 31 FDI of LAC
Source IMF (World Economic Outlook octubre 2014) y World Factbook-CIA World Investment Report 2014 -UNCTAD Trademap () 2013
ACHIEVEMENTS
Framework Agreement
First Additional Protocol to the Framework Agreement
Aditional dispositions on e-commerce amp telecommunications
Intellectual property projects
Consolidation of MILA biggest Latinamerica stock market
Joint Events on Export Promotion
Visa acilities for business people staying over 180 days
Visa tourist exemption
Student Grants
Joint Cooperation Fund of the Pacific Alliance
Inter-institutional Agreement on pharmaceuticals products
Cooperation Agreement in Tourism
Joint Diplomatic and Trade Offices
Migratory Exchange of Information XX032014
Oficina Comercial
ADDITIONAL PROTOCOL
Tariffs elimination bull 100 Tariffs elimination bull 92 immediately once entry into force bull 8 short and medium term (between 3 and 17 years)
Rules of origin Flexibility single rule and accumulation through PA member in order to the commercial integration
Trade facilitation Electronic Certification of Origin Interoperability of the single window Custom Cooperation Authorized Economic Operator
Sanitary and Phytosanitary Measures Increase transparency in the application of sanitary and phytosanitary measures and strengthen the use of science-based
Technical Barriers to Trade Increase transparency and the regulatory cooperation among other matters
Comprehensive Chapters in Services and Investment
Cross-Border Trade in Services and Investment Protect cross border trade in services the investors and their investments in the countries of the Pacific Alliance Telecomunications Ensure of telecommunications services in the region of the Pacific Alliance under free competition particularly in relation to the dominant suppliers E-Commerce Electronic transactions of goods and services shall be regulated including digital products to ensure their safety and efficiency Maritime Services Grant a non-discriminatory treatment to ships from PA countries in its ports the recognition of the documentation of vessels and crew among others Financial Services Grant legal certainty for investors and service providers from the four countries in the financial sector consolidating the laws of each country
ADDITIONAL PROTOCOL
Government Procurement Facilitate and encourage the participation of MSMEs as well expand the coverage of existing agreements including rules and actions
Dispute Settlement Mechanism address to the prevention or settlement of disputes between the Parties concerning the interpretation implementation or application of the Agreement
ADDITIONAL PROTOCOL
NEXT STEPShellip
1 Free Movement of Capitals 11 Financial integration - Pensions portability along with the persons - Foreign Investment promotion policy - Financial inclusion 12 Infrastructure investment - Regional Investment Fund 13 Public Finance - Mechanism for Exchange of Fiscal Information - Natural Disasters Joint Risk Management
2 Free Movement of Goods amp Services - Homologation administrative norms - Foreign Trade Single Windows interoperability - Consumer Rights Booklet - MoU on Exchange Information about controversy solutions for consumer protection - Mining projects
3 Free Movement of People Pacific Alliance Visa
4 Cooperation aerospace cooperation operations start of the Joint Cooperation Fund of the Pacific Alliance
Contexto negociacioacuten TPP DIRECON
El TPP es el proceso de negociacioacuten econoacutemica y comercial maacutes importante que se desarrolla en el escenario internacional que surge con el objetivo de generar un proceso de integracioacuten en la regioacuten Asia Paciacutefico Negociacioacuten de 12 paiacuteses entre las cuales se encuentran dos de las tres economiacuteas maacutes grandes del mundo Espacio donde se estaacute definiendo la nueva arquitectura del comercio internacional estableciendo las reglas o estaacutendares que lo regiraacuten durante los proacuteximos antildeos Ha sido definido por los miembros de APEC como un elemento central para la construccioacuten de la Zona de Libre de Comercio en el Asia Paciacutefico (regioacuten con los niveles maacutes altos de dinamismo econoacutemico) Respecto de nuestros acuerdos vigentes con paiacuteses TPP seraacute posible completar su cobertura incluyendo temas como servicios compras puacuteblicas e inversiones Beneficios Especiacuteficos Acceso a mercados Compras Puacuteblicas Normas de origen y Acumulacioacuten Facilitacioacuten de Comercio Servicios Inversiones Entrada Temporal de Personas de Negocios Comercio Electroacutenico y Telecomunicaciones Asuntos Ambientales y Laborales Coherencia Regulatoria Otros beneficios
TRANSPACIFIC PARTENERSHIP AGREEMENT (TPP) MEMBER COUNTRIES
TPP is one of the most important trade integration initiatives in the current international scenario Two of the three largest economies in the world are members The agreement will help establish rules for international trade in the Asia Pacific region It has been described by APEC members as a central element for the construction of the Free Trade Area in the Asia Pacific
TRANS PACIFIC PARTNERSHIP (TPP)
38
TPP ndash IMPORTANCE FOR CHILE
Chile will participate in the formulation of rules and standards which will govern international trade during the next century TPP will be a key element to consolidate trade integration between Chile and Asia TPP will position Chile as a business platform to access markets of Latin-America It will enable Chile to enhance coverage of current existing bilateral FTAs
39
8
Source Studies Department DIRECON-PROCHILE based on data of Central Bank of Chile
2003 US$ 38 billion 2015 US$ 23 billion
TRADE FIGURES IMPORTS BY COUNTRY IN ASIA (MILLIONS US$)
44
19
14
3
2
18
China
Japan
South Korea
Thailand
India
Other
66 9
9
3
3 10
1642 707 537 109 100 255
14800
2105 1996 735 720 358
China Japan South Korea Thailand India Taipei China
2003
2015
9
Countryperiod
1974-2009 2010 2011 2012 2013 2014 2015 Total
Japan 2817956 340616 1484690 2534160 2524905 593076 184296 10479699
Australia 3522512 100846 119451 151898 561594 134533 17949 4608783
China 84620 376 9754 9187 12336 420 184186 300879
South Korea 40371 - 158380 - 14920 16769 - 230440
New Zealand 158791 - - - - - - 158791
India 27107 - - - - - - 27107
Malaysia 22923 - - - - - - 22923
Taiwan 10578 555 2973 - - - - 14106
Singapore 4352 - - - - - - 4352
Asia Pacific Total
6689210 442393 1775248 2695245 3113755 744798 386431 15847080
ASIA PACIFIC FDI IN CHILE (US$ Thousands)
Source Studies Department DIRECON-PROCHILE base on data of Foreign Investment Promotion Agency january-september 2015
3 CHILE ndash THAILAND TRADE
11
CHILE ndash THAILAND BILATERAL TRADE
NUMBER OF PRODUCTS
NUMBER OF COMPANIES
95 (2003)
164 (2015) raquo
132 (2003)
263 (2015) raquo
288
795
336
735
-
100
200
300
400
500
600
700
800
900
Exportaciones (FOB) Importaciones (CIF)
US$ MM
2014 2015
Source Studies Department DIRECON-PROCHILE based on data of Central Bank of Chile
SHARE IN CHILEAN IMPORTS
2015
43
6
11
34
20
1
14
5
THAI EXPORTS TO CHILE MAIN PRODUCTS
12
Source Studies Department DIRECON-PROCHILE over data of Global Trade Atlas
MAIN EXPORTS TO CHILE FROM THAILAND
(Thousand US$)
HS CODE DESCRIPTION 2015
870421 Diesel powered trucks 287586
870332 Automobiles with diesel
engine 61701
870322 Automobiles with engine cylinder gt 1000 lt 1500 cc
58667
160414 Fish prepared or preserved 34055
842810 Pas or Freight elevator 9093
390120 Polyethylene gravity of 094 or
more 6083
845020 Washing machines with dry
linen capacity gt 10 kg 6029
841810 Combined refrigerator -
freezers 6015
CHILEAN EXPORTS TO THAILAND MAIN PRODUCTS
13
MAIN CHILEAN EXPORTS TO THAILAND
(Thousand US$)
HS CODE DESCRIPTION 2015
470311 Chemical wood pulp 47699
740311 Copper cathodes 46029
030313 Frozen Atlantic Salmon 28877
310420 Potassium Chloride 16369
030314 Frozen Trout 15326
030312 Frozen Pacific Salmon 9842
440710 Coniferous Wood Sawn Sliced Etc
Over 6 Mm Thick 4624
0080610 Fresh Grapes 4356
Source Studies Department DIRECON-PROCHILE over data of Global Trade Atlas
SHARE IN THAILAND IMPORTS
2015
372
25
622
59
625
192
106
34
14
4 CHILE ndash THAILAND FTA CONTENTS amp OPPORTUNITIES
FTAacuteS TIMELINE amp CONTENTS
Disciplines Negotiated
Trade in Goods
Rules of Origin
Custom Procedures and Cooperation
Sanitary and Phytosanitary Measures
Technical Barriers to Trade
Trade Remedies
Trade in Services
Financial Services
Dispute Settlement
Transparency
raquo Joint Study Group
raquo Negotiations began in April 2011
raquo Total of 6 Rounds of negotiations where held
raquo Negotiations concluded successfully in August 2012
raquo FTA was signed early October 2013
raquo FTA in force since November 5th 2015
CHILEAN EXPORTS TO THAILAND CHANGES SINCE FTA ENTERED INTO FORCE
16
Subsector Jan
2015
Cooper 5163406
Salmon and trout 6779878
Fish oil 64673
Leather and fur industries 139110
Dry fruits and vegetables 0
Mussels 53050
Sparkling wine 0
Jan
2016
17447064
8156678
311745
171978
83090
80000
4560
Tariff under FTA
0
0-5
0
0
0-40
10-15
0
US$ Dif Nov 1514
28053867
1674381
236101
184659
172923
16190
1480
THAI EXPORTS TO CHILE CHANGES SINCE FTA ENTERED INTO FORCE
17
Subsector Jan
2015
Transportation Equipment Manufacturing 29283305
Mechanic machinery equipment 3756793
Electric machinery equipment 673988
Jewelery and goldsmith 199696
Plastic raw materials 0
Jan
2016
40623355
4161988
474726
640271
196210
Tariff under FTA
0
0 -5 antildeos
0
0
0
US$ Dif Nov 1514
5965017
2324327
2159999
740078
275471
18
MARKET ACCES OFFERs UNDER THE FTA
Thailand granted Chile the
elimination of 901 of tariff lines in immediate category
THAI OFFER
CATEGORY PRODUCTS
NT0 (inmmediate) 7383
NT0 (O tariff for quotas WTO)
87
NT1 ( Year 3) 142
NT2 (Year 5) 575
SL (Year 8) 102
Total 8300
CHILEAN OFFER
CATEGORY PRODUCTS
Year 0 6989
Year 3 321
Year 5 298
SL (Year 8) 107
Total 7715
On the other hand Chile granted immediate tariff elimination to 906 of tariff lines
TARIFF
NMF FTA
5 Year 0
10 Year 0
30 Year 0
0 Year 0
30 Year 0 - Year 3
30 Year 0
30 Year 0
5 Year 0
40 0 in 2016
10 Year 5
10 Year 0
5 - 10 Year 0
30 Year 0 - Year 5
30 Year 0 - Year 5
27 Year 0 - Year 5
CHILEAN EXPORTS TO THAILAND POTENTIAL NEW EXPORTS (thousand US$)
19 Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Description
441239 Plywood consisting solely of sheets of wood
250100 Salt pure sodium chlorideampsea water
080830 Pears
710691 Silver in unwrought forms
200799 Jamsfruit jelliesfruitnut pureacuteeamppaste
200290 Tomatoes prepared or preserved
190490 Cerealsin grain form
310230 Ammonium nitrate pack weighg gt 10 kg
080520 Mandarins
200979 Apple juice
080212 Almondsfresh or driedshelled or peeled
190110 Prep of cerealsflourstarch
200870 Peaches preserved
080510 Oranges fresh or dried
150910 Olive oil virgin
Chiles exports to
World
Thailands imports
from world
348825 28662
189179 7021
141149 40326
139243 304920
129069 8503
127035 19816
106145 12496
95225 12932
93902 106357
90919 5120
87070 33113
73026 92985
72334 20709
62333 5988
57921 8231
THAI EXPORTS TO CHILE POTENTIAL NEW EXPORTS (thousand US$)
20
Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Description
400122 Technically specified natural rubber
870333 Automobiles with diesel engine 2500 cc
271012 Light petroleum oils and preparations
730890 Structuresparts of structures
030617 Other frozen shrimps and prawns
Hair shampoos
390760 Polyethylene terephthalate
330590 Hair preparations nes
390410 Polyvinyl chloride
390720 Polyethers nes
761510 Table kitchen or other household articles
850710 Lead-acid electric accumulators
841199 Parts of gas turbines nes
330610 Dentifrices
Thailand`s exports to
world
Chiles imports
from world
2670862 27215
1555558 85799
1376742 402119
851605 168678
624041 32211
422492 67538
383853 93937
346316 80249
276977 71610
250879 45834
226498 28908
207511 77064
193332 38427
183200 36079
TARIFF
NMF FTA
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
THAILAND EXPORTS KEY PRODUCTS (thousand US$)
21
Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Product label Exported
Thailands 2015
847170 Computer data storage units 10943347
870421 Diesel powered trucks 6798984
271019 Petroleum oils and preparations 5427876
100630 Rice semi-milled or wholly milled 4078187
847330 Parts and accessories of automatic data
processg machines 3253436
854231 Electronic integrated circuits as
processors and controllers 2865029
400122 Technically specified natural rubber
(TSNR) 2670862
870899 Motor vehicle parts nes 2666050
870323 Automobiles w reciprocatg piston engine
displacg gt 1500 cc to 3000 cc 2611009
Thailands exports to
Chile
Chiles imports
from world
2 123864
287582 928981
5 3598452
1656 70351
4 53079
- 14139
- 27215
2045 554180
602 1660996
NMF FTA
6 Year 0
6 Year 0
6 Year 0
6 Year 5
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
Chapter on Rules of Origin meets the standards that Chile has negotiated in recent agreements Committees regarding Technical Barriers to Trade (TBT ) and Sanitary and Phytosanitary Measures (SPS) are included Regarding the chapter on services will grant new opportunities in trade in services The inclusion of a chapter on financial services enable financial institutions in Chile and Thailand obtain a non- discriminatory treatment and to establish andor acquire financial institutions in both financial markets The Agreement also includes a Cooperation chapter that will allow closer cooperation relations between the public private and academic spheres in areas of mutual interest Commitment of start negotiation of an investment chapter
22
CHILE ndash THAILAND FTA
23
5 PRODUCTION LINKAGES
A new step forward in Chilean trade policy designed to leverage business opportunities generated by Chilersquos network of trade agreements Consists of business alliances with trading partners for in-country goods production using imported supplies Production linkages involve processing partner-country materials or parts in Chile Finished value-added goods can then be re-exported to countries making use of Chile tariff reductions Rules of origin play a fundamental role in securing tariff reductions
24
WHAT ARE PRODUCTION LINKAGES
FIRST STEP
The material supply or consumable good is imported to the country with preferential treatment
SUMMARY
Production or
assembly in Chile
FTA Final good
Supplies
Preferencia
Arancelaria
Rules of
Origin
FTAs
Tariff
SECOND STEP The production process is carried out in Chile or Thailand in order to comply with the rules of origin of different trade agreements
THRID STEP
The final good is exported (with Chilean of Thai origin) to other markets
EXAMPLE
Chile ndash Thailand Free Trade
Agreement Potential Market of 566 million
consumers
0 Tariff 0 Tariff
PYMEs
Cooperacioacuten
Servicios
Coherencia Regulatoria
Laboral
Defensa Comercial
Medidas Sanitarias y Fitosanitarias Competitividad
Desarrollo
Temas aduaneros Solucioacuten de Controversias
Reglas de Origen
Inversiones
Obstaacuteculos Teacutecnicos al Comercio
Acceso a Mercados Servicios Financieros
Comercio Electroacutenico
Asuntos Legales Administracioacuten Transparencia Anticorrupcioacuten
Excepciones Disposiciones Finales
Medio Ambiente
Propiedad Intelectual
Empresas del Estado
Entrada Temporal
Compras Puacuteblicas
Telecomunicaciones
CONTEXTO Temas Bajo Negociacioacuten
27
6 FINAL REMARKS
The Agreement will allow both countries Establish economic alliances and reciprocal investments
Simplify sanitary and technical regulations
Standardize customs procedures
Faster addressing trade problems through contact points and
Technical Committees
28
MAIN BENEFITS
THANK YOU
Diego Torres Diez
Head Asia and Oceania Department
General Directorate for International Economic Affairs
April 2016
PACIFIC ALLIANCE FIGURES
6th world economy (28 world GDP)
35 population of LAC (216 millions)
527 Latin American exports
37 GDP and 31 FDI of LAC
Source IMF (World Economic Outlook octubre 2014) y World Factbook-CIA World Investment Report 2014 -UNCTAD Trademap () 2013
ACHIEVEMENTS
Framework Agreement
First Additional Protocol to the Framework Agreement
Aditional dispositions on e-commerce amp telecommunications
Intellectual property projects
Consolidation of MILA biggest Latinamerica stock market
Joint Events on Export Promotion
Visa acilities for business people staying over 180 days
Visa tourist exemption
Student Grants
Joint Cooperation Fund of the Pacific Alliance
Inter-institutional Agreement on pharmaceuticals products
Cooperation Agreement in Tourism
Joint Diplomatic and Trade Offices
Migratory Exchange of Information XX032014
Oficina Comercial
ADDITIONAL PROTOCOL
Tariffs elimination bull 100 Tariffs elimination bull 92 immediately once entry into force bull 8 short and medium term (between 3 and 17 years)
Rules of origin Flexibility single rule and accumulation through PA member in order to the commercial integration
Trade facilitation Electronic Certification of Origin Interoperability of the single window Custom Cooperation Authorized Economic Operator
Sanitary and Phytosanitary Measures Increase transparency in the application of sanitary and phytosanitary measures and strengthen the use of science-based
Technical Barriers to Trade Increase transparency and the regulatory cooperation among other matters
Comprehensive Chapters in Services and Investment
Cross-Border Trade in Services and Investment Protect cross border trade in services the investors and their investments in the countries of the Pacific Alliance Telecomunications Ensure of telecommunications services in the region of the Pacific Alliance under free competition particularly in relation to the dominant suppliers E-Commerce Electronic transactions of goods and services shall be regulated including digital products to ensure their safety and efficiency Maritime Services Grant a non-discriminatory treatment to ships from PA countries in its ports the recognition of the documentation of vessels and crew among others Financial Services Grant legal certainty for investors and service providers from the four countries in the financial sector consolidating the laws of each country
ADDITIONAL PROTOCOL
Government Procurement Facilitate and encourage the participation of MSMEs as well expand the coverage of existing agreements including rules and actions
Dispute Settlement Mechanism address to the prevention or settlement of disputes between the Parties concerning the interpretation implementation or application of the Agreement
ADDITIONAL PROTOCOL
NEXT STEPShellip
1 Free Movement of Capitals 11 Financial integration - Pensions portability along with the persons - Foreign Investment promotion policy - Financial inclusion 12 Infrastructure investment - Regional Investment Fund 13 Public Finance - Mechanism for Exchange of Fiscal Information - Natural Disasters Joint Risk Management
2 Free Movement of Goods amp Services - Homologation administrative norms - Foreign Trade Single Windows interoperability - Consumer Rights Booklet - MoU on Exchange Information about controversy solutions for consumer protection - Mining projects
3 Free Movement of People Pacific Alliance Visa
4 Cooperation aerospace cooperation operations start of the Joint Cooperation Fund of the Pacific Alliance
Contexto negociacioacuten TPP DIRECON
El TPP es el proceso de negociacioacuten econoacutemica y comercial maacutes importante que se desarrolla en el escenario internacional que surge con el objetivo de generar un proceso de integracioacuten en la regioacuten Asia Paciacutefico Negociacioacuten de 12 paiacuteses entre las cuales se encuentran dos de las tres economiacuteas maacutes grandes del mundo Espacio donde se estaacute definiendo la nueva arquitectura del comercio internacional estableciendo las reglas o estaacutendares que lo regiraacuten durante los proacuteximos antildeos Ha sido definido por los miembros de APEC como un elemento central para la construccioacuten de la Zona de Libre de Comercio en el Asia Paciacutefico (regioacuten con los niveles maacutes altos de dinamismo econoacutemico) Respecto de nuestros acuerdos vigentes con paiacuteses TPP seraacute posible completar su cobertura incluyendo temas como servicios compras puacuteblicas e inversiones Beneficios Especiacuteficos Acceso a mercados Compras Puacuteblicas Normas de origen y Acumulacioacuten Facilitacioacuten de Comercio Servicios Inversiones Entrada Temporal de Personas de Negocios Comercio Electroacutenico y Telecomunicaciones Asuntos Ambientales y Laborales Coherencia Regulatoria Otros beneficios
TRANSPACIFIC PARTENERSHIP AGREEMENT (TPP) MEMBER COUNTRIES
TPP is one of the most important trade integration initiatives in the current international scenario Two of the three largest economies in the world are members The agreement will help establish rules for international trade in the Asia Pacific region It has been described by APEC members as a central element for the construction of the Free Trade Area in the Asia Pacific
TRANS PACIFIC PARTNERSHIP (TPP)
38
TPP ndash IMPORTANCE FOR CHILE
Chile will participate in the formulation of rules and standards which will govern international trade during the next century TPP will be a key element to consolidate trade integration between Chile and Asia TPP will position Chile as a business platform to access markets of Latin-America It will enable Chile to enhance coverage of current existing bilateral FTAs
39
9
Countryperiod
1974-2009 2010 2011 2012 2013 2014 2015 Total
Japan 2817956 340616 1484690 2534160 2524905 593076 184296 10479699
Australia 3522512 100846 119451 151898 561594 134533 17949 4608783
China 84620 376 9754 9187 12336 420 184186 300879
South Korea 40371 - 158380 - 14920 16769 - 230440
New Zealand 158791 - - - - - - 158791
India 27107 - - - - - - 27107
Malaysia 22923 - - - - - - 22923
Taiwan 10578 555 2973 - - - - 14106
Singapore 4352 - - - - - - 4352
Asia Pacific Total
6689210 442393 1775248 2695245 3113755 744798 386431 15847080
ASIA PACIFIC FDI IN CHILE (US$ Thousands)
Source Studies Department DIRECON-PROCHILE base on data of Foreign Investment Promotion Agency january-september 2015
3 CHILE ndash THAILAND TRADE
11
CHILE ndash THAILAND BILATERAL TRADE
NUMBER OF PRODUCTS
NUMBER OF COMPANIES
95 (2003)
164 (2015) raquo
132 (2003)
263 (2015) raquo
288
795
336
735
-
100
200
300
400
500
600
700
800
900
Exportaciones (FOB) Importaciones (CIF)
US$ MM
2014 2015
Source Studies Department DIRECON-PROCHILE based on data of Central Bank of Chile
SHARE IN CHILEAN IMPORTS
2015
43
6
11
34
20
1
14
5
THAI EXPORTS TO CHILE MAIN PRODUCTS
12
Source Studies Department DIRECON-PROCHILE over data of Global Trade Atlas
MAIN EXPORTS TO CHILE FROM THAILAND
(Thousand US$)
HS CODE DESCRIPTION 2015
870421 Diesel powered trucks 287586
870332 Automobiles with diesel
engine 61701
870322 Automobiles with engine cylinder gt 1000 lt 1500 cc
58667
160414 Fish prepared or preserved 34055
842810 Pas or Freight elevator 9093
390120 Polyethylene gravity of 094 or
more 6083
845020 Washing machines with dry
linen capacity gt 10 kg 6029
841810 Combined refrigerator -
freezers 6015
CHILEAN EXPORTS TO THAILAND MAIN PRODUCTS
13
MAIN CHILEAN EXPORTS TO THAILAND
(Thousand US$)
HS CODE DESCRIPTION 2015
470311 Chemical wood pulp 47699
740311 Copper cathodes 46029
030313 Frozen Atlantic Salmon 28877
310420 Potassium Chloride 16369
030314 Frozen Trout 15326
030312 Frozen Pacific Salmon 9842
440710 Coniferous Wood Sawn Sliced Etc
Over 6 Mm Thick 4624
0080610 Fresh Grapes 4356
Source Studies Department DIRECON-PROCHILE over data of Global Trade Atlas
SHARE IN THAILAND IMPORTS
2015
372
25
622
59
625
192
106
34
14
4 CHILE ndash THAILAND FTA CONTENTS amp OPPORTUNITIES
FTAacuteS TIMELINE amp CONTENTS
Disciplines Negotiated
Trade in Goods
Rules of Origin
Custom Procedures and Cooperation
Sanitary and Phytosanitary Measures
Technical Barriers to Trade
Trade Remedies
Trade in Services
Financial Services
Dispute Settlement
Transparency
raquo Joint Study Group
raquo Negotiations began in April 2011
raquo Total of 6 Rounds of negotiations where held
raquo Negotiations concluded successfully in August 2012
raquo FTA was signed early October 2013
raquo FTA in force since November 5th 2015
CHILEAN EXPORTS TO THAILAND CHANGES SINCE FTA ENTERED INTO FORCE
16
Subsector Jan
2015
Cooper 5163406
Salmon and trout 6779878
Fish oil 64673
Leather and fur industries 139110
Dry fruits and vegetables 0
Mussels 53050
Sparkling wine 0
Jan
2016
17447064
8156678
311745
171978
83090
80000
4560
Tariff under FTA
0
0-5
0
0
0-40
10-15
0
US$ Dif Nov 1514
28053867
1674381
236101
184659
172923
16190
1480
THAI EXPORTS TO CHILE CHANGES SINCE FTA ENTERED INTO FORCE
17
Subsector Jan
2015
Transportation Equipment Manufacturing 29283305
Mechanic machinery equipment 3756793
Electric machinery equipment 673988
Jewelery and goldsmith 199696
Plastic raw materials 0
Jan
2016
40623355
4161988
474726
640271
196210
Tariff under FTA
0
0 -5 antildeos
0
0
0
US$ Dif Nov 1514
5965017
2324327
2159999
740078
275471
18
MARKET ACCES OFFERs UNDER THE FTA
Thailand granted Chile the
elimination of 901 of tariff lines in immediate category
THAI OFFER
CATEGORY PRODUCTS
NT0 (inmmediate) 7383
NT0 (O tariff for quotas WTO)
87
NT1 ( Year 3) 142
NT2 (Year 5) 575
SL (Year 8) 102
Total 8300
CHILEAN OFFER
CATEGORY PRODUCTS
Year 0 6989
Year 3 321
Year 5 298
SL (Year 8) 107
Total 7715
On the other hand Chile granted immediate tariff elimination to 906 of tariff lines
TARIFF
NMF FTA
5 Year 0
10 Year 0
30 Year 0
0 Year 0
30 Year 0 - Year 3
30 Year 0
30 Year 0
5 Year 0
40 0 in 2016
10 Year 5
10 Year 0
5 - 10 Year 0
30 Year 0 - Year 5
30 Year 0 - Year 5
27 Year 0 - Year 5
CHILEAN EXPORTS TO THAILAND POTENTIAL NEW EXPORTS (thousand US$)
19 Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Description
441239 Plywood consisting solely of sheets of wood
250100 Salt pure sodium chlorideampsea water
080830 Pears
710691 Silver in unwrought forms
200799 Jamsfruit jelliesfruitnut pureacuteeamppaste
200290 Tomatoes prepared or preserved
190490 Cerealsin grain form
310230 Ammonium nitrate pack weighg gt 10 kg
080520 Mandarins
200979 Apple juice
080212 Almondsfresh or driedshelled or peeled
190110 Prep of cerealsflourstarch
200870 Peaches preserved
080510 Oranges fresh or dried
150910 Olive oil virgin
Chiles exports to
World
Thailands imports
from world
348825 28662
189179 7021
141149 40326
139243 304920
129069 8503
127035 19816
106145 12496
95225 12932
93902 106357
90919 5120
87070 33113
73026 92985
72334 20709
62333 5988
57921 8231
THAI EXPORTS TO CHILE POTENTIAL NEW EXPORTS (thousand US$)
20
Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Description
400122 Technically specified natural rubber
870333 Automobiles with diesel engine 2500 cc
271012 Light petroleum oils and preparations
730890 Structuresparts of structures
030617 Other frozen shrimps and prawns
Hair shampoos
390760 Polyethylene terephthalate
330590 Hair preparations nes
390410 Polyvinyl chloride
390720 Polyethers nes
761510 Table kitchen or other household articles
850710 Lead-acid electric accumulators
841199 Parts of gas turbines nes
330610 Dentifrices
Thailand`s exports to
world
Chiles imports
from world
2670862 27215
1555558 85799
1376742 402119
851605 168678
624041 32211
422492 67538
383853 93937
346316 80249
276977 71610
250879 45834
226498 28908
207511 77064
193332 38427
183200 36079
TARIFF
NMF FTA
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
THAILAND EXPORTS KEY PRODUCTS (thousand US$)
21
Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Product label Exported
Thailands 2015
847170 Computer data storage units 10943347
870421 Diesel powered trucks 6798984
271019 Petroleum oils and preparations 5427876
100630 Rice semi-milled or wholly milled 4078187
847330 Parts and accessories of automatic data
processg machines 3253436
854231 Electronic integrated circuits as
processors and controllers 2865029
400122 Technically specified natural rubber
(TSNR) 2670862
870899 Motor vehicle parts nes 2666050
870323 Automobiles w reciprocatg piston engine
displacg gt 1500 cc to 3000 cc 2611009
Thailands exports to
Chile
Chiles imports
from world
2 123864
287582 928981
5 3598452
1656 70351
4 53079
- 14139
- 27215
2045 554180
602 1660996
NMF FTA
6 Year 0
6 Year 0
6 Year 0
6 Year 5
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
Chapter on Rules of Origin meets the standards that Chile has negotiated in recent agreements Committees regarding Technical Barriers to Trade (TBT ) and Sanitary and Phytosanitary Measures (SPS) are included Regarding the chapter on services will grant new opportunities in trade in services The inclusion of a chapter on financial services enable financial institutions in Chile and Thailand obtain a non- discriminatory treatment and to establish andor acquire financial institutions in both financial markets The Agreement also includes a Cooperation chapter that will allow closer cooperation relations between the public private and academic spheres in areas of mutual interest Commitment of start negotiation of an investment chapter
22
CHILE ndash THAILAND FTA
23
5 PRODUCTION LINKAGES
A new step forward in Chilean trade policy designed to leverage business opportunities generated by Chilersquos network of trade agreements Consists of business alliances with trading partners for in-country goods production using imported supplies Production linkages involve processing partner-country materials or parts in Chile Finished value-added goods can then be re-exported to countries making use of Chile tariff reductions Rules of origin play a fundamental role in securing tariff reductions
24
WHAT ARE PRODUCTION LINKAGES
FIRST STEP
The material supply or consumable good is imported to the country with preferential treatment
SUMMARY
Production or
assembly in Chile
FTA Final good
Supplies
Preferencia
Arancelaria
Rules of
Origin
FTAs
Tariff
SECOND STEP The production process is carried out in Chile or Thailand in order to comply with the rules of origin of different trade agreements
THRID STEP
The final good is exported (with Chilean of Thai origin) to other markets
EXAMPLE
Chile ndash Thailand Free Trade
Agreement Potential Market of 566 million
consumers
0 Tariff 0 Tariff
PYMEs
Cooperacioacuten
Servicios
Coherencia Regulatoria
Laboral
Defensa Comercial
Medidas Sanitarias y Fitosanitarias Competitividad
Desarrollo
Temas aduaneros Solucioacuten de Controversias
Reglas de Origen
Inversiones
Obstaacuteculos Teacutecnicos al Comercio
Acceso a Mercados Servicios Financieros
Comercio Electroacutenico
Asuntos Legales Administracioacuten Transparencia Anticorrupcioacuten
Excepciones Disposiciones Finales
Medio Ambiente
Propiedad Intelectual
Empresas del Estado
Entrada Temporal
Compras Puacuteblicas
Telecomunicaciones
CONTEXTO Temas Bajo Negociacioacuten
27
6 FINAL REMARKS
The Agreement will allow both countries Establish economic alliances and reciprocal investments
Simplify sanitary and technical regulations
Standardize customs procedures
Faster addressing trade problems through contact points and
Technical Committees
28
MAIN BENEFITS
THANK YOU
Diego Torres Diez
Head Asia and Oceania Department
General Directorate for International Economic Affairs
April 2016
PACIFIC ALLIANCE FIGURES
6th world economy (28 world GDP)
35 population of LAC (216 millions)
527 Latin American exports
37 GDP and 31 FDI of LAC
Source IMF (World Economic Outlook octubre 2014) y World Factbook-CIA World Investment Report 2014 -UNCTAD Trademap () 2013
ACHIEVEMENTS
Framework Agreement
First Additional Protocol to the Framework Agreement
Aditional dispositions on e-commerce amp telecommunications
Intellectual property projects
Consolidation of MILA biggest Latinamerica stock market
Joint Events on Export Promotion
Visa acilities for business people staying over 180 days
Visa tourist exemption
Student Grants
Joint Cooperation Fund of the Pacific Alliance
Inter-institutional Agreement on pharmaceuticals products
Cooperation Agreement in Tourism
Joint Diplomatic and Trade Offices
Migratory Exchange of Information XX032014
Oficina Comercial
ADDITIONAL PROTOCOL
Tariffs elimination bull 100 Tariffs elimination bull 92 immediately once entry into force bull 8 short and medium term (between 3 and 17 years)
Rules of origin Flexibility single rule and accumulation through PA member in order to the commercial integration
Trade facilitation Electronic Certification of Origin Interoperability of the single window Custom Cooperation Authorized Economic Operator
Sanitary and Phytosanitary Measures Increase transparency in the application of sanitary and phytosanitary measures and strengthen the use of science-based
Technical Barriers to Trade Increase transparency and the regulatory cooperation among other matters
Comprehensive Chapters in Services and Investment
Cross-Border Trade in Services and Investment Protect cross border trade in services the investors and their investments in the countries of the Pacific Alliance Telecomunications Ensure of telecommunications services in the region of the Pacific Alliance under free competition particularly in relation to the dominant suppliers E-Commerce Electronic transactions of goods and services shall be regulated including digital products to ensure their safety and efficiency Maritime Services Grant a non-discriminatory treatment to ships from PA countries in its ports the recognition of the documentation of vessels and crew among others Financial Services Grant legal certainty for investors and service providers from the four countries in the financial sector consolidating the laws of each country
ADDITIONAL PROTOCOL
Government Procurement Facilitate and encourage the participation of MSMEs as well expand the coverage of existing agreements including rules and actions
Dispute Settlement Mechanism address to the prevention or settlement of disputes between the Parties concerning the interpretation implementation or application of the Agreement
ADDITIONAL PROTOCOL
NEXT STEPShellip
1 Free Movement of Capitals 11 Financial integration - Pensions portability along with the persons - Foreign Investment promotion policy - Financial inclusion 12 Infrastructure investment - Regional Investment Fund 13 Public Finance - Mechanism for Exchange of Fiscal Information - Natural Disasters Joint Risk Management
2 Free Movement of Goods amp Services - Homologation administrative norms - Foreign Trade Single Windows interoperability - Consumer Rights Booklet - MoU on Exchange Information about controversy solutions for consumer protection - Mining projects
3 Free Movement of People Pacific Alliance Visa
4 Cooperation aerospace cooperation operations start of the Joint Cooperation Fund of the Pacific Alliance
Contexto negociacioacuten TPP DIRECON
El TPP es el proceso de negociacioacuten econoacutemica y comercial maacutes importante que se desarrolla en el escenario internacional que surge con el objetivo de generar un proceso de integracioacuten en la regioacuten Asia Paciacutefico Negociacioacuten de 12 paiacuteses entre las cuales se encuentran dos de las tres economiacuteas maacutes grandes del mundo Espacio donde se estaacute definiendo la nueva arquitectura del comercio internacional estableciendo las reglas o estaacutendares que lo regiraacuten durante los proacuteximos antildeos Ha sido definido por los miembros de APEC como un elemento central para la construccioacuten de la Zona de Libre de Comercio en el Asia Paciacutefico (regioacuten con los niveles maacutes altos de dinamismo econoacutemico) Respecto de nuestros acuerdos vigentes con paiacuteses TPP seraacute posible completar su cobertura incluyendo temas como servicios compras puacuteblicas e inversiones Beneficios Especiacuteficos Acceso a mercados Compras Puacuteblicas Normas de origen y Acumulacioacuten Facilitacioacuten de Comercio Servicios Inversiones Entrada Temporal de Personas de Negocios Comercio Electroacutenico y Telecomunicaciones Asuntos Ambientales y Laborales Coherencia Regulatoria Otros beneficios
TRANSPACIFIC PARTENERSHIP AGREEMENT (TPP) MEMBER COUNTRIES
TPP is one of the most important trade integration initiatives in the current international scenario Two of the three largest economies in the world are members The agreement will help establish rules for international trade in the Asia Pacific region It has been described by APEC members as a central element for the construction of the Free Trade Area in the Asia Pacific
TRANS PACIFIC PARTNERSHIP (TPP)
38
TPP ndash IMPORTANCE FOR CHILE
Chile will participate in the formulation of rules and standards which will govern international trade during the next century TPP will be a key element to consolidate trade integration between Chile and Asia TPP will position Chile as a business platform to access markets of Latin-America It will enable Chile to enhance coverage of current existing bilateral FTAs
39
3 CHILE ndash THAILAND TRADE
11
CHILE ndash THAILAND BILATERAL TRADE
NUMBER OF PRODUCTS
NUMBER OF COMPANIES
95 (2003)
164 (2015) raquo
132 (2003)
263 (2015) raquo
288
795
336
735
-
100
200
300
400
500
600
700
800
900
Exportaciones (FOB) Importaciones (CIF)
US$ MM
2014 2015
Source Studies Department DIRECON-PROCHILE based on data of Central Bank of Chile
SHARE IN CHILEAN IMPORTS
2015
43
6
11
34
20
1
14
5
THAI EXPORTS TO CHILE MAIN PRODUCTS
12
Source Studies Department DIRECON-PROCHILE over data of Global Trade Atlas
MAIN EXPORTS TO CHILE FROM THAILAND
(Thousand US$)
HS CODE DESCRIPTION 2015
870421 Diesel powered trucks 287586
870332 Automobiles with diesel
engine 61701
870322 Automobiles with engine cylinder gt 1000 lt 1500 cc
58667
160414 Fish prepared or preserved 34055
842810 Pas or Freight elevator 9093
390120 Polyethylene gravity of 094 or
more 6083
845020 Washing machines with dry
linen capacity gt 10 kg 6029
841810 Combined refrigerator -
freezers 6015
CHILEAN EXPORTS TO THAILAND MAIN PRODUCTS
13
MAIN CHILEAN EXPORTS TO THAILAND
(Thousand US$)
HS CODE DESCRIPTION 2015
470311 Chemical wood pulp 47699
740311 Copper cathodes 46029
030313 Frozen Atlantic Salmon 28877
310420 Potassium Chloride 16369
030314 Frozen Trout 15326
030312 Frozen Pacific Salmon 9842
440710 Coniferous Wood Sawn Sliced Etc
Over 6 Mm Thick 4624
0080610 Fresh Grapes 4356
Source Studies Department DIRECON-PROCHILE over data of Global Trade Atlas
SHARE IN THAILAND IMPORTS
2015
372
25
622
59
625
192
106
34
14
4 CHILE ndash THAILAND FTA CONTENTS amp OPPORTUNITIES
FTAacuteS TIMELINE amp CONTENTS
Disciplines Negotiated
Trade in Goods
Rules of Origin
Custom Procedures and Cooperation
Sanitary and Phytosanitary Measures
Technical Barriers to Trade
Trade Remedies
Trade in Services
Financial Services
Dispute Settlement
Transparency
raquo Joint Study Group
raquo Negotiations began in April 2011
raquo Total of 6 Rounds of negotiations where held
raquo Negotiations concluded successfully in August 2012
raquo FTA was signed early October 2013
raquo FTA in force since November 5th 2015
CHILEAN EXPORTS TO THAILAND CHANGES SINCE FTA ENTERED INTO FORCE
16
Subsector Jan
2015
Cooper 5163406
Salmon and trout 6779878
Fish oil 64673
Leather and fur industries 139110
Dry fruits and vegetables 0
Mussels 53050
Sparkling wine 0
Jan
2016
17447064
8156678
311745
171978
83090
80000
4560
Tariff under FTA
0
0-5
0
0
0-40
10-15
0
US$ Dif Nov 1514
28053867
1674381
236101
184659
172923
16190
1480
THAI EXPORTS TO CHILE CHANGES SINCE FTA ENTERED INTO FORCE
17
Subsector Jan
2015
Transportation Equipment Manufacturing 29283305
Mechanic machinery equipment 3756793
Electric machinery equipment 673988
Jewelery and goldsmith 199696
Plastic raw materials 0
Jan
2016
40623355
4161988
474726
640271
196210
Tariff under FTA
0
0 -5 antildeos
0
0
0
US$ Dif Nov 1514
5965017
2324327
2159999
740078
275471
18
MARKET ACCES OFFERs UNDER THE FTA
Thailand granted Chile the
elimination of 901 of tariff lines in immediate category
THAI OFFER
CATEGORY PRODUCTS
NT0 (inmmediate) 7383
NT0 (O tariff for quotas WTO)
87
NT1 ( Year 3) 142
NT2 (Year 5) 575
SL (Year 8) 102
Total 8300
CHILEAN OFFER
CATEGORY PRODUCTS
Year 0 6989
Year 3 321
Year 5 298
SL (Year 8) 107
Total 7715
On the other hand Chile granted immediate tariff elimination to 906 of tariff lines
TARIFF
NMF FTA
5 Year 0
10 Year 0
30 Year 0
0 Year 0
30 Year 0 - Year 3
30 Year 0
30 Year 0
5 Year 0
40 0 in 2016
10 Year 5
10 Year 0
5 - 10 Year 0
30 Year 0 - Year 5
30 Year 0 - Year 5
27 Year 0 - Year 5
CHILEAN EXPORTS TO THAILAND POTENTIAL NEW EXPORTS (thousand US$)
19 Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Description
441239 Plywood consisting solely of sheets of wood
250100 Salt pure sodium chlorideampsea water
080830 Pears
710691 Silver in unwrought forms
200799 Jamsfruit jelliesfruitnut pureacuteeamppaste
200290 Tomatoes prepared or preserved
190490 Cerealsin grain form
310230 Ammonium nitrate pack weighg gt 10 kg
080520 Mandarins
200979 Apple juice
080212 Almondsfresh or driedshelled or peeled
190110 Prep of cerealsflourstarch
200870 Peaches preserved
080510 Oranges fresh or dried
150910 Olive oil virgin
Chiles exports to
World
Thailands imports
from world
348825 28662
189179 7021
141149 40326
139243 304920
129069 8503
127035 19816
106145 12496
95225 12932
93902 106357
90919 5120
87070 33113
73026 92985
72334 20709
62333 5988
57921 8231
THAI EXPORTS TO CHILE POTENTIAL NEW EXPORTS (thousand US$)
20
Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Description
400122 Technically specified natural rubber
870333 Automobiles with diesel engine 2500 cc
271012 Light petroleum oils and preparations
730890 Structuresparts of structures
030617 Other frozen shrimps and prawns
Hair shampoos
390760 Polyethylene terephthalate
330590 Hair preparations nes
390410 Polyvinyl chloride
390720 Polyethers nes
761510 Table kitchen or other household articles
850710 Lead-acid electric accumulators
841199 Parts of gas turbines nes
330610 Dentifrices
Thailand`s exports to
world
Chiles imports
from world
2670862 27215
1555558 85799
1376742 402119
851605 168678
624041 32211
422492 67538
383853 93937
346316 80249
276977 71610
250879 45834
226498 28908
207511 77064
193332 38427
183200 36079
TARIFF
NMF FTA
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
THAILAND EXPORTS KEY PRODUCTS (thousand US$)
21
Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Product label Exported
Thailands 2015
847170 Computer data storage units 10943347
870421 Diesel powered trucks 6798984
271019 Petroleum oils and preparations 5427876
100630 Rice semi-milled or wholly milled 4078187
847330 Parts and accessories of automatic data
processg machines 3253436
854231 Electronic integrated circuits as
processors and controllers 2865029
400122 Technically specified natural rubber
(TSNR) 2670862
870899 Motor vehicle parts nes 2666050
870323 Automobiles w reciprocatg piston engine
displacg gt 1500 cc to 3000 cc 2611009
Thailands exports to
Chile
Chiles imports
from world
2 123864
287582 928981
5 3598452
1656 70351
4 53079
- 14139
- 27215
2045 554180
602 1660996
NMF FTA
6 Year 0
6 Year 0
6 Year 0
6 Year 5
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
Chapter on Rules of Origin meets the standards that Chile has negotiated in recent agreements Committees regarding Technical Barriers to Trade (TBT ) and Sanitary and Phytosanitary Measures (SPS) are included Regarding the chapter on services will grant new opportunities in trade in services The inclusion of a chapter on financial services enable financial institutions in Chile and Thailand obtain a non- discriminatory treatment and to establish andor acquire financial institutions in both financial markets The Agreement also includes a Cooperation chapter that will allow closer cooperation relations between the public private and academic spheres in areas of mutual interest Commitment of start negotiation of an investment chapter
22
CHILE ndash THAILAND FTA
23
5 PRODUCTION LINKAGES
A new step forward in Chilean trade policy designed to leverage business opportunities generated by Chilersquos network of trade agreements Consists of business alliances with trading partners for in-country goods production using imported supplies Production linkages involve processing partner-country materials or parts in Chile Finished value-added goods can then be re-exported to countries making use of Chile tariff reductions Rules of origin play a fundamental role in securing tariff reductions
24
WHAT ARE PRODUCTION LINKAGES
FIRST STEP
The material supply or consumable good is imported to the country with preferential treatment
SUMMARY
Production or
assembly in Chile
FTA Final good
Supplies
Preferencia
Arancelaria
Rules of
Origin
FTAs
Tariff
SECOND STEP The production process is carried out in Chile or Thailand in order to comply with the rules of origin of different trade agreements
THRID STEP
The final good is exported (with Chilean of Thai origin) to other markets
EXAMPLE
Chile ndash Thailand Free Trade
Agreement Potential Market of 566 million
consumers
0 Tariff 0 Tariff
PYMEs
Cooperacioacuten
Servicios
Coherencia Regulatoria
Laboral
Defensa Comercial
Medidas Sanitarias y Fitosanitarias Competitividad
Desarrollo
Temas aduaneros Solucioacuten de Controversias
Reglas de Origen
Inversiones
Obstaacuteculos Teacutecnicos al Comercio
Acceso a Mercados Servicios Financieros
Comercio Electroacutenico
Asuntos Legales Administracioacuten Transparencia Anticorrupcioacuten
Excepciones Disposiciones Finales
Medio Ambiente
Propiedad Intelectual
Empresas del Estado
Entrada Temporal
Compras Puacuteblicas
Telecomunicaciones
CONTEXTO Temas Bajo Negociacioacuten
27
6 FINAL REMARKS
The Agreement will allow both countries Establish economic alliances and reciprocal investments
Simplify sanitary and technical regulations
Standardize customs procedures
Faster addressing trade problems through contact points and
Technical Committees
28
MAIN BENEFITS
THANK YOU
Diego Torres Diez
Head Asia and Oceania Department
General Directorate for International Economic Affairs
April 2016
PACIFIC ALLIANCE FIGURES
6th world economy (28 world GDP)
35 population of LAC (216 millions)
527 Latin American exports
37 GDP and 31 FDI of LAC
Source IMF (World Economic Outlook octubre 2014) y World Factbook-CIA World Investment Report 2014 -UNCTAD Trademap () 2013
ACHIEVEMENTS
Framework Agreement
First Additional Protocol to the Framework Agreement
Aditional dispositions on e-commerce amp telecommunications
Intellectual property projects
Consolidation of MILA biggest Latinamerica stock market
Joint Events on Export Promotion
Visa acilities for business people staying over 180 days
Visa tourist exemption
Student Grants
Joint Cooperation Fund of the Pacific Alliance
Inter-institutional Agreement on pharmaceuticals products
Cooperation Agreement in Tourism
Joint Diplomatic and Trade Offices
Migratory Exchange of Information XX032014
Oficina Comercial
ADDITIONAL PROTOCOL
Tariffs elimination bull 100 Tariffs elimination bull 92 immediately once entry into force bull 8 short and medium term (between 3 and 17 years)
Rules of origin Flexibility single rule and accumulation through PA member in order to the commercial integration
Trade facilitation Electronic Certification of Origin Interoperability of the single window Custom Cooperation Authorized Economic Operator
Sanitary and Phytosanitary Measures Increase transparency in the application of sanitary and phytosanitary measures and strengthen the use of science-based
Technical Barriers to Trade Increase transparency and the regulatory cooperation among other matters
Comprehensive Chapters in Services and Investment
Cross-Border Trade in Services and Investment Protect cross border trade in services the investors and their investments in the countries of the Pacific Alliance Telecomunications Ensure of telecommunications services in the region of the Pacific Alliance under free competition particularly in relation to the dominant suppliers E-Commerce Electronic transactions of goods and services shall be regulated including digital products to ensure their safety and efficiency Maritime Services Grant a non-discriminatory treatment to ships from PA countries in its ports the recognition of the documentation of vessels and crew among others Financial Services Grant legal certainty for investors and service providers from the four countries in the financial sector consolidating the laws of each country
ADDITIONAL PROTOCOL
Government Procurement Facilitate and encourage the participation of MSMEs as well expand the coverage of existing agreements including rules and actions
Dispute Settlement Mechanism address to the prevention or settlement of disputes between the Parties concerning the interpretation implementation or application of the Agreement
ADDITIONAL PROTOCOL
NEXT STEPShellip
1 Free Movement of Capitals 11 Financial integration - Pensions portability along with the persons - Foreign Investment promotion policy - Financial inclusion 12 Infrastructure investment - Regional Investment Fund 13 Public Finance - Mechanism for Exchange of Fiscal Information - Natural Disasters Joint Risk Management
2 Free Movement of Goods amp Services - Homologation administrative norms - Foreign Trade Single Windows interoperability - Consumer Rights Booklet - MoU on Exchange Information about controversy solutions for consumer protection - Mining projects
3 Free Movement of People Pacific Alliance Visa
4 Cooperation aerospace cooperation operations start of the Joint Cooperation Fund of the Pacific Alliance
Contexto negociacioacuten TPP DIRECON
El TPP es el proceso de negociacioacuten econoacutemica y comercial maacutes importante que se desarrolla en el escenario internacional que surge con el objetivo de generar un proceso de integracioacuten en la regioacuten Asia Paciacutefico Negociacioacuten de 12 paiacuteses entre las cuales se encuentran dos de las tres economiacuteas maacutes grandes del mundo Espacio donde se estaacute definiendo la nueva arquitectura del comercio internacional estableciendo las reglas o estaacutendares que lo regiraacuten durante los proacuteximos antildeos Ha sido definido por los miembros de APEC como un elemento central para la construccioacuten de la Zona de Libre de Comercio en el Asia Paciacutefico (regioacuten con los niveles maacutes altos de dinamismo econoacutemico) Respecto de nuestros acuerdos vigentes con paiacuteses TPP seraacute posible completar su cobertura incluyendo temas como servicios compras puacuteblicas e inversiones Beneficios Especiacuteficos Acceso a mercados Compras Puacuteblicas Normas de origen y Acumulacioacuten Facilitacioacuten de Comercio Servicios Inversiones Entrada Temporal de Personas de Negocios Comercio Electroacutenico y Telecomunicaciones Asuntos Ambientales y Laborales Coherencia Regulatoria Otros beneficios
TRANSPACIFIC PARTENERSHIP AGREEMENT (TPP) MEMBER COUNTRIES
TPP is one of the most important trade integration initiatives in the current international scenario Two of the three largest economies in the world are members The agreement will help establish rules for international trade in the Asia Pacific region It has been described by APEC members as a central element for the construction of the Free Trade Area in the Asia Pacific
TRANS PACIFIC PARTNERSHIP (TPP)
38
TPP ndash IMPORTANCE FOR CHILE
Chile will participate in the formulation of rules and standards which will govern international trade during the next century TPP will be a key element to consolidate trade integration between Chile and Asia TPP will position Chile as a business platform to access markets of Latin-America It will enable Chile to enhance coverage of current existing bilateral FTAs
39
11
CHILE ndash THAILAND BILATERAL TRADE
NUMBER OF PRODUCTS
NUMBER OF COMPANIES
95 (2003)
164 (2015) raquo
132 (2003)
263 (2015) raquo
288
795
336
735
-
100
200
300
400
500
600
700
800
900
Exportaciones (FOB) Importaciones (CIF)
US$ MM
2014 2015
Source Studies Department DIRECON-PROCHILE based on data of Central Bank of Chile
SHARE IN CHILEAN IMPORTS
2015
43
6
11
34
20
1
14
5
THAI EXPORTS TO CHILE MAIN PRODUCTS
12
Source Studies Department DIRECON-PROCHILE over data of Global Trade Atlas
MAIN EXPORTS TO CHILE FROM THAILAND
(Thousand US$)
HS CODE DESCRIPTION 2015
870421 Diesel powered trucks 287586
870332 Automobiles with diesel
engine 61701
870322 Automobiles with engine cylinder gt 1000 lt 1500 cc
58667
160414 Fish prepared or preserved 34055
842810 Pas or Freight elevator 9093
390120 Polyethylene gravity of 094 or
more 6083
845020 Washing machines with dry
linen capacity gt 10 kg 6029
841810 Combined refrigerator -
freezers 6015
CHILEAN EXPORTS TO THAILAND MAIN PRODUCTS
13
MAIN CHILEAN EXPORTS TO THAILAND
(Thousand US$)
HS CODE DESCRIPTION 2015
470311 Chemical wood pulp 47699
740311 Copper cathodes 46029
030313 Frozen Atlantic Salmon 28877
310420 Potassium Chloride 16369
030314 Frozen Trout 15326
030312 Frozen Pacific Salmon 9842
440710 Coniferous Wood Sawn Sliced Etc
Over 6 Mm Thick 4624
0080610 Fresh Grapes 4356
Source Studies Department DIRECON-PROCHILE over data of Global Trade Atlas
SHARE IN THAILAND IMPORTS
2015
372
25
622
59
625
192
106
34
14
4 CHILE ndash THAILAND FTA CONTENTS amp OPPORTUNITIES
FTAacuteS TIMELINE amp CONTENTS
Disciplines Negotiated
Trade in Goods
Rules of Origin
Custom Procedures and Cooperation
Sanitary and Phytosanitary Measures
Technical Barriers to Trade
Trade Remedies
Trade in Services
Financial Services
Dispute Settlement
Transparency
raquo Joint Study Group
raquo Negotiations began in April 2011
raquo Total of 6 Rounds of negotiations where held
raquo Negotiations concluded successfully in August 2012
raquo FTA was signed early October 2013
raquo FTA in force since November 5th 2015
CHILEAN EXPORTS TO THAILAND CHANGES SINCE FTA ENTERED INTO FORCE
16
Subsector Jan
2015
Cooper 5163406
Salmon and trout 6779878
Fish oil 64673
Leather and fur industries 139110
Dry fruits and vegetables 0
Mussels 53050
Sparkling wine 0
Jan
2016
17447064
8156678
311745
171978
83090
80000
4560
Tariff under FTA
0
0-5
0
0
0-40
10-15
0
US$ Dif Nov 1514
28053867
1674381
236101
184659
172923
16190
1480
THAI EXPORTS TO CHILE CHANGES SINCE FTA ENTERED INTO FORCE
17
Subsector Jan
2015
Transportation Equipment Manufacturing 29283305
Mechanic machinery equipment 3756793
Electric machinery equipment 673988
Jewelery and goldsmith 199696
Plastic raw materials 0
Jan
2016
40623355
4161988
474726
640271
196210
Tariff under FTA
0
0 -5 antildeos
0
0
0
US$ Dif Nov 1514
5965017
2324327
2159999
740078
275471
18
MARKET ACCES OFFERs UNDER THE FTA
Thailand granted Chile the
elimination of 901 of tariff lines in immediate category
THAI OFFER
CATEGORY PRODUCTS
NT0 (inmmediate) 7383
NT0 (O tariff for quotas WTO)
87
NT1 ( Year 3) 142
NT2 (Year 5) 575
SL (Year 8) 102
Total 8300
CHILEAN OFFER
CATEGORY PRODUCTS
Year 0 6989
Year 3 321
Year 5 298
SL (Year 8) 107
Total 7715
On the other hand Chile granted immediate tariff elimination to 906 of tariff lines
TARIFF
NMF FTA
5 Year 0
10 Year 0
30 Year 0
0 Year 0
30 Year 0 - Year 3
30 Year 0
30 Year 0
5 Year 0
40 0 in 2016
10 Year 5
10 Year 0
5 - 10 Year 0
30 Year 0 - Year 5
30 Year 0 - Year 5
27 Year 0 - Year 5
CHILEAN EXPORTS TO THAILAND POTENTIAL NEW EXPORTS (thousand US$)
19 Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Description
441239 Plywood consisting solely of sheets of wood
250100 Salt pure sodium chlorideampsea water
080830 Pears
710691 Silver in unwrought forms
200799 Jamsfruit jelliesfruitnut pureacuteeamppaste
200290 Tomatoes prepared or preserved
190490 Cerealsin grain form
310230 Ammonium nitrate pack weighg gt 10 kg
080520 Mandarins
200979 Apple juice
080212 Almondsfresh or driedshelled or peeled
190110 Prep of cerealsflourstarch
200870 Peaches preserved
080510 Oranges fresh or dried
150910 Olive oil virgin
Chiles exports to
World
Thailands imports
from world
348825 28662
189179 7021
141149 40326
139243 304920
129069 8503
127035 19816
106145 12496
95225 12932
93902 106357
90919 5120
87070 33113
73026 92985
72334 20709
62333 5988
57921 8231
THAI EXPORTS TO CHILE POTENTIAL NEW EXPORTS (thousand US$)
20
Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Description
400122 Technically specified natural rubber
870333 Automobiles with diesel engine 2500 cc
271012 Light petroleum oils and preparations
730890 Structuresparts of structures
030617 Other frozen shrimps and prawns
Hair shampoos
390760 Polyethylene terephthalate
330590 Hair preparations nes
390410 Polyvinyl chloride
390720 Polyethers nes
761510 Table kitchen or other household articles
850710 Lead-acid electric accumulators
841199 Parts of gas turbines nes
330610 Dentifrices
Thailand`s exports to
world
Chiles imports
from world
2670862 27215
1555558 85799
1376742 402119
851605 168678
624041 32211
422492 67538
383853 93937
346316 80249
276977 71610
250879 45834
226498 28908
207511 77064
193332 38427
183200 36079
TARIFF
NMF FTA
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
THAILAND EXPORTS KEY PRODUCTS (thousand US$)
21
Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Product label Exported
Thailands 2015
847170 Computer data storage units 10943347
870421 Diesel powered trucks 6798984
271019 Petroleum oils and preparations 5427876
100630 Rice semi-milled or wholly milled 4078187
847330 Parts and accessories of automatic data
processg machines 3253436
854231 Electronic integrated circuits as
processors and controllers 2865029
400122 Technically specified natural rubber
(TSNR) 2670862
870899 Motor vehicle parts nes 2666050
870323 Automobiles w reciprocatg piston engine
displacg gt 1500 cc to 3000 cc 2611009
Thailands exports to
Chile
Chiles imports
from world
2 123864
287582 928981
5 3598452
1656 70351
4 53079
- 14139
- 27215
2045 554180
602 1660996
NMF FTA
6 Year 0
6 Year 0
6 Year 0
6 Year 5
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
Chapter on Rules of Origin meets the standards that Chile has negotiated in recent agreements Committees regarding Technical Barriers to Trade (TBT ) and Sanitary and Phytosanitary Measures (SPS) are included Regarding the chapter on services will grant new opportunities in trade in services The inclusion of a chapter on financial services enable financial institutions in Chile and Thailand obtain a non- discriminatory treatment and to establish andor acquire financial institutions in both financial markets The Agreement also includes a Cooperation chapter that will allow closer cooperation relations between the public private and academic spheres in areas of mutual interest Commitment of start negotiation of an investment chapter
22
CHILE ndash THAILAND FTA
23
5 PRODUCTION LINKAGES
A new step forward in Chilean trade policy designed to leverage business opportunities generated by Chilersquos network of trade agreements Consists of business alliances with trading partners for in-country goods production using imported supplies Production linkages involve processing partner-country materials or parts in Chile Finished value-added goods can then be re-exported to countries making use of Chile tariff reductions Rules of origin play a fundamental role in securing tariff reductions
24
WHAT ARE PRODUCTION LINKAGES
FIRST STEP
The material supply or consumable good is imported to the country with preferential treatment
SUMMARY
Production or
assembly in Chile
FTA Final good
Supplies
Preferencia
Arancelaria
Rules of
Origin
FTAs
Tariff
SECOND STEP The production process is carried out in Chile or Thailand in order to comply with the rules of origin of different trade agreements
THRID STEP
The final good is exported (with Chilean of Thai origin) to other markets
EXAMPLE
Chile ndash Thailand Free Trade
Agreement Potential Market of 566 million
consumers
0 Tariff 0 Tariff
PYMEs
Cooperacioacuten
Servicios
Coherencia Regulatoria
Laboral
Defensa Comercial
Medidas Sanitarias y Fitosanitarias Competitividad
Desarrollo
Temas aduaneros Solucioacuten de Controversias
Reglas de Origen
Inversiones
Obstaacuteculos Teacutecnicos al Comercio
Acceso a Mercados Servicios Financieros
Comercio Electroacutenico
Asuntos Legales Administracioacuten Transparencia Anticorrupcioacuten
Excepciones Disposiciones Finales
Medio Ambiente
Propiedad Intelectual
Empresas del Estado
Entrada Temporal
Compras Puacuteblicas
Telecomunicaciones
CONTEXTO Temas Bajo Negociacioacuten
27
6 FINAL REMARKS
The Agreement will allow both countries Establish economic alliances and reciprocal investments
Simplify sanitary and technical regulations
Standardize customs procedures
Faster addressing trade problems through contact points and
Technical Committees
28
MAIN BENEFITS
THANK YOU
Diego Torres Diez
Head Asia and Oceania Department
General Directorate for International Economic Affairs
April 2016
PACIFIC ALLIANCE FIGURES
6th world economy (28 world GDP)
35 population of LAC (216 millions)
527 Latin American exports
37 GDP and 31 FDI of LAC
Source IMF (World Economic Outlook octubre 2014) y World Factbook-CIA World Investment Report 2014 -UNCTAD Trademap () 2013
ACHIEVEMENTS
Framework Agreement
First Additional Protocol to the Framework Agreement
Aditional dispositions on e-commerce amp telecommunications
Intellectual property projects
Consolidation of MILA biggest Latinamerica stock market
Joint Events on Export Promotion
Visa acilities for business people staying over 180 days
Visa tourist exemption
Student Grants
Joint Cooperation Fund of the Pacific Alliance
Inter-institutional Agreement on pharmaceuticals products
Cooperation Agreement in Tourism
Joint Diplomatic and Trade Offices
Migratory Exchange of Information XX032014
Oficina Comercial
ADDITIONAL PROTOCOL
Tariffs elimination bull 100 Tariffs elimination bull 92 immediately once entry into force bull 8 short and medium term (between 3 and 17 years)
Rules of origin Flexibility single rule and accumulation through PA member in order to the commercial integration
Trade facilitation Electronic Certification of Origin Interoperability of the single window Custom Cooperation Authorized Economic Operator
Sanitary and Phytosanitary Measures Increase transparency in the application of sanitary and phytosanitary measures and strengthen the use of science-based
Technical Barriers to Trade Increase transparency and the regulatory cooperation among other matters
Comprehensive Chapters in Services and Investment
Cross-Border Trade in Services and Investment Protect cross border trade in services the investors and their investments in the countries of the Pacific Alliance Telecomunications Ensure of telecommunications services in the region of the Pacific Alliance under free competition particularly in relation to the dominant suppliers E-Commerce Electronic transactions of goods and services shall be regulated including digital products to ensure their safety and efficiency Maritime Services Grant a non-discriminatory treatment to ships from PA countries in its ports the recognition of the documentation of vessels and crew among others Financial Services Grant legal certainty for investors and service providers from the four countries in the financial sector consolidating the laws of each country
ADDITIONAL PROTOCOL
Government Procurement Facilitate and encourage the participation of MSMEs as well expand the coverage of existing agreements including rules and actions
Dispute Settlement Mechanism address to the prevention or settlement of disputes between the Parties concerning the interpretation implementation or application of the Agreement
ADDITIONAL PROTOCOL
NEXT STEPShellip
1 Free Movement of Capitals 11 Financial integration - Pensions portability along with the persons - Foreign Investment promotion policy - Financial inclusion 12 Infrastructure investment - Regional Investment Fund 13 Public Finance - Mechanism for Exchange of Fiscal Information - Natural Disasters Joint Risk Management
2 Free Movement of Goods amp Services - Homologation administrative norms - Foreign Trade Single Windows interoperability - Consumer Rights Booklet - MoU on Exchange Information about controversy solutions for consumer protection - Mining projects
3 Free Movement of People Pacific Alliance Visa
4 Cooperation aerospace cooperation operations start of the Joint Cooperation Fund of the Pacific Alliance
Contexto negociacioacuten TPP DIRECON
El TPP es el proceso de negociacioacuten econoacutemica y comercial maacutes importante que se desarrolla en el escenario internacional que surge con el objetivo de generar un proceso de integracioacuten en la regioacuten Asia Paciacutefico Negociacioacuten de 12 paiacuteses entre las cuales se encuentran dos de las tres economiacuteas maacutes grandes del mundo Espacio donde se estaacute definiendo la nueva arquitectura del comercio internacional estableciendo las reglas o estaacutendares que lo regiraacuten durante los proacuteximos antildeos Ha sido definido por los miembros de APEC como un elemento central para la construccioacuten de la Zona de Libre de Comercio en el Asia Paciacutefico (regioacuten con los niveles maacutes altos de dinamismo econoacutemico) Respecto de nuestros acuerdos vigentes con paiacuteses TPP seraacute posible completar su cobertura incluyendo temas como servicios compras puacuteblicas e inversiones Beneficios Especiacuteficos Acceso a mercados Compras Puacuteblicas Normas de origen y Acumulacioacuten Facilitacioacuten de Comercio Servicios Inversiones Entrada Temporal de Personas de Negocios Comercio Electroacutenico y Telecomunicaciones Asuntos Ambientales y Laborales Coherencia Regulatoria Otros beneficios
TRANSPACIFIC PARTENERSHIP AGREEMENT (TPP) MEMBER COUNTRIES
TPP is one of the most important trade integration initiatives in the current international scenario Two of the three largest economies in the world are members The agreement will help establish rules for international trade in the Asia Pacific region It has been described by APEC members as a central element for the construction of the Free Trade Area in the Asia Pacific
TRANS PACIFIC PARTNERSHIP (TPP)
38
TPP ndash IMPORTANCE FOR CHILE
Chile will participate in the formulation of rules and standards which will govern international trade during the next century TPP will be a key element to consolidate trade integration between Chile and Asia TPP will position Chile as a business platform to access markets of Latin-America It will enable Chile to enhance coverage of current existing bilateral FTAs
39
SHARE IN CHILEAN IMPORTS
2015
43
6
11
34
20
1
14
5
THAI EXPORTS TO CHILE MAIN PRODUCTS
12
Source Studies Department DIRECON-PROCHILE over data of Global Trade Atlas
MAIN EXPORTS TO CHILE FROM THAILAND
(Thousand US$)
HS CODE DESCRIPTION 2015
870421 Diesel powered trucks 287586
870332 Automobiles with diesel
engine 61701
870322 Automobiles with engine cylinder gt 1000 lt 1500 cc
58667
160414 Fish prepared or preserved 34055
842810 Pas or Freight elevator 9093
390120 Polyethylene gravity of 094 or
more 6083
845020 Washing machines with dry
linen capacity gt 10 kg 6029
841810 Combined refrigerator -
freezers 6015
CHILEAN EXPORTS TO THAILAND MAIN PRODUCTS
13
MAIN CHILEAN EXPORTS TO THAILAND
(Thousand US$)
HS CODE DESCRIPTION 2015
470311 Chemical wood pulp 47699
740311 Copper cathodes 46029
030313 Frozen Atlantic Salmon 28877
310420 Potassium Chloride 16369
030314 Frozen Trout 15326
030312 Frozen Pacific Salmon 9842
440710 Coniferous Wood Sawn Sliced Etc
Over 6 Mm Thick 4624
0080610 Fresh Grapes 4356
Source Studies Department DIRECON-PROCHILE over data of Global Trade Atlas
SHARE IN THAILAND IMPORTS
2015
372
25
622
59
625
192
106
34
14
4 CHILE ndash THAILAND FTA CONTENTS amp OPPORTUNITIES
FTAacuteS TIMELINE amp CONTENTS
Disciplines Negotiated
Trade in Goods
Rules of Origin
Custom Procedures and Cooperation
Sanitary and Phytosanitary Measures
Technical Barriers to Trade
Trade Remedies
Trade in Services
Financial Services
Dispute Settlement
Transparency
raquo Joint Study Group
raquo Negotiations began in April 2011
raquo Total of 6 Rounds of negotiations where held
raquo Negotiations concluded successfully in August 2012
raquo FTA was signed early October 2013
raquo FTA in force since November 5th 2015
CHILEAN EXPORTS TO THAILAND CHANGES SINCE FTA ENTERED INTO FORCE
16
Subsector Jan
2015
Cooper 5163406
Salmon and trout 6779878
Fish oil 64673
Leather and fur industries 139110
Dry fruits and vegetables 0
Mussels 53050
Sparkling wine 0
Jan
2016
17447064
8156678
311745
171978
83090
80000
4560
Tariff under FTA
0
0-5
0
0
0-40
10-15
0
US$ Dif Nov 1514
28053867
1674381
236101
184659
172923
16190
1480
THAI EXPORTS TO CHILE CHANGES SINCE FTA ENTERED INTO FORCE
17
Subsector Jan
2015
Transportation Equipment Manufacturing 29283305
Mechanic machinery equipment 3756793
Electric machinery equipment 673988
Jewelery and goldsmith 199696
Plastic raw materials 0
Jan
2016
40623355
4161988
474726
640271
196210
Tariff under FTA
0
0 -5 antildeos
0
0
0
US$ Dif Nov 1514
5965017
2324327
2159999
740078
275471
18
MARKET ACCES OFFERs UNDER THE FTA
Thailand granted Chile the
elimination of 901 of tariff lines in immediate category
THAI OFFER
CATEGORY PRODUCTS
NT0 (inmmediate) 7383
NT0 (O tariff for quotas WTO)
87
NT1 ( Year 3) 142
NT2 (Year 5) 575
SL (Year 8) 102
Total 8300
CHILEAN OFFER
CATEGORY PRODUCTS
Year 0 6989
Year 3 321
Year 5 298
SL (Year 8) 107
Total 7715
On the other hand Chile granted immediate tariff elimination to 906 of tariff lines
TARIFF
NMF FTA
5 Year 0
10 Year 0
30 Year 0
0 Year 0
30 Year 0 - Year 3
30 Year 0
30 Year 0
5 Year 0
40 0 in 2016
10 Year 5
10 Year 0
5 - 10 Year 0
30 Year 0 - Year 5
30 Year 0 - Year 5
27 Year 0 - Year 5
CHILEAN EXPORTS TO THAILAND POTENTIAL NEW EXPORTS (thousand US$)
19 Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Description
441239 Plywood consisting solely of sheets of wood
250100 Salt pure sodium chlorideampsea water
080830 Pears
710691 Silver in unwrought forms
200799 Jamsfruit jelliesfruitnut pureacuteeamppaste
200290 Tomatoes prepared or preserved
190490 Cerealsin grain form
310230 Ammonium nitrate pack weighg gt 10 kg
080520 Mandarins
200979 Apple juice
080212 Almondsfresh or driedshelled or peeled
190110 Prep of cerealsflourstarch
200870 Peaches preserved
080510 Oranges fresh or dried
150910 Olive oil virgin
Chiles exports to
World
Thailands imports
from world
348825 28662
189179 7021
141149 40326
139243 304920
129069 8503
127035 19816
106145 12496
95225 12932
93902 106357
90919 5120
87070 33113
73026 92985
72334 20709
62333 5988
57921 8231
THAI EXPORTS TO CHILE POTENTIAL NEW EXPORTS (thousand US$)
20
Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Description
400122 Technically specified natural rubber
870333 Automobiles with diesel engine 2500 cc
271012 Light petroleum oils and preparations
730890 Structuresparts of structures
030617 Other frozen shrimps and prawns
Hair shampoos
390760 Polyethylene terephthalate
330590 Hair preparations nes
390410 Polyvinyl chloride
390720 Polyethers nes
761510 Table kitchen or other household articles
850710 Lead-acid electric accumulators
841199 Parts of gas turbines nes
330610 Dentifrices
Thailand`s exports to
world
Chiles imports
from world
2670862 27215
1555558 85799
1376742 402119
851605 168678
624041 32211
422492 67538
383853 93937
346316 80249
276977 71610
250879 45834
226498 28908
207511 77064
193332 38427
183200 36079
TARIFF
NMF FTA
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
THAILAND EXPORTS KEY PRODUCTS (thousand US$)
21
Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Product label Exported
Thailands 2015
847170 Computer data storage units 10943347
870421 Diesel powered trucks 6798984
271019 Petroleum oils and preparations 5427876
100630 Rice semi-milled or wholly milled 4078187
847330 Parts and accessories of automatic data
processg machines 3253436
854231 Electronic integrated circuits as
processors and controllers 2865029
400122 Technically specified natural rubber
(TSNR) 2670862
870899 Motor vehicle parts nes 2666050
870323 Automobiles w reciprocatg piston engine
displacg gt 1500 cc to 3000 cc 2611009
Thailands exports to
Chile
Chiles imports
from world
2 123864
287582 928981
5 3598452
1656 70351
4 53079
- 14139
- 27215
2045 554180
602 1660996
NMF FTA
6 Year 0
6 Year 0
6 Year 0
6 Year 5
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
Chapter on Rules of Origin meets the standards that Chile has negotiated in recent agreements Committees regarding Technical Barriers to Trade (TBT ) and Sanitary and Phytosanitary Measures (SPS) are included Regarding the chapter on services will grant new opportunities in trade in services The inclusion of a chapter on financial services enable financial institutions in Chile and Thailand obtain a non- discriminatory treatment and to establish andor acquire financial institutions in both financial markets The Agreement also includes a Cooperation chapter that will allow closer cooperation relations between the public private and academic spheres in areas of mutual interest Commitment of start negotiation of an investment chapter
22
CHILE ndash THAILAND FTA
23
5 PRODUCTION LINKAGES
A new step forward in Chilean trade policy designed to leverage business opportunities generated by Chilersquos network of trade agreements Consists of business alliances with trading partners for in-country goods production using imported supplies Production linkages involve processing partner-country materials or parts in Chile Finished value-added goods can then be re-exported to countries making use of Chile tariff reductions Rules of origin play a fundamental role in securing tariff reductions
24
WHAT ARE PRODUCTION LINKAGES
FIRST STEP
The material supply or consumable good is imported to the country with preferential treatment
SUMMARY
Production or
assembly in Chile
FTA Final good
Supplies
Preferencia
Arancelaria
Rules of
Origin
FTAs
Tariff
SECOND STEP The production process is carried out in Chile or Thailand in order to comply with the rules of origin of different trade agreements
THRID STEP
The final good is exported (with Chilean of Thai origin) to other markets
EXAMPLE
Chile ndash Thailand Free Trade
Agreement Potential Market of 566 million
consumers
0 Tariff 0 Tariff
PYMEs
Cooperacioacuten
Servicios
Coherencia Regulatoria
Laboral
Defensa Comercial
Medidas Sanitarias y Fitosanitarias Competitividad
Desarrollo
Temas aduaneros Solucioacuten de Controversias
Reglas de Origen
Inversiones
Obstaacuteculos Teacutecnicos al Comercio
Acceso a Mercados Servicios Financieros
Comercio Electroacutenico
Asuntos Legales Administracioacuten Transparencia Anticorrupcioacuten
Excepciones Disposiciones Finales
Medio Ambiente
Propiedad Intelectual
Empresas del Estado
Entrada Temporal
Compras Puacuteblicas
Telecomunicaciones
CONTEXTO Temas Bajo Negociacioacuten
27
6 FINAL REMARKS
The Agreement will allow both countries Establish economic alliances and reciprocal investments
Simplify sanitary and technical regulations
Standardize customs procedures
Faster addressing trade problems through contact points and
Technical Committees
28
MAIN BENEFITS
THANK YOU
Diego Torres Diez
Head Asia and Oceania Department
General Directorate for International Economic Affairs
April 2016
PACIFIC ALLIANCE FIGURES
6th world economy (28 world GDP)
35 population of LAC (216 millions)
527 Latin American exports
37 GDP and 31 FDI of LAC
Source IMF (World Economic Outlook octubre 2014) y World Factbook-CIA World Investment Report 2014 -UNCTAD Trademap () 2013
ACHIEVEMENTS
Framework Agreement
First Additional Protocol to the Framework Agreement
Aditional dispositions on e-commerce amp telecommunications
Intellectual property projects
Consolidation of MILA biggest Latinamerica stock market
Joint Events on Export Promotion
Visa acilities for business people staying over 180 days
Visa tourist exemption
Student Grants
Joint Cooperation Fund of the Pacific Alliance
Inter-institutional Agreement on pharmaceuticals products
Cooperation Agreement in Tourism
Joint Diplomatic and Trade Offices
Migratory Exchange of Information XX032014
Oficina Comercial
ADDITIONAL PROTOCOL
Tariffs elimination bull 100 Tariffs elimination bull 92 immediately once entry into force bull 8 short and medium term (between 3 and 17 years)
Rules of origin Flexibility single rule and accumulation through PA member in order to the commercial integration
Trade facilitation Electronic Certification of Origin Interoperability of the single window Custom Cooperation Authorized Economic Operator
Sanitary and Phytosanitary Measures Increase transparency in the application of sanitary and phytosanitary measures and strengthen the use of science-based
Technical Barriers to Trade Increase transparency and the regulatory cooperation among other matters
Comprehensive Chapters in Services and Investment
Cross-Border Trade in Services and Investment Protect cross border trade in services the investors and their investments in the countries of the Pacific Alliance Telecomunications Ensure of telecommunications services in the region of the Pacific Alliance under free competition particularly in relation to the dominant suppliers E-Commerce Electronic transactions of goods and services shall be regulated including digital products to ensure their safety and efficiency Maritime Services Grant a non-discriminatory treatment to ships from PA countries in its ports the recognition of the documentation of vessels and crew among others Financial Services Grant legal certainty for investors and service providers from the four countries in the financial sector consolidating the laws of each country
ADDITIONAL PROTOCOL
Government Procurement Facilitate and encourage the participation of MSMEs as well expand the coverage of existing agreements including rules and actions
Dispute Settlement Mechanism address to the prevention or settlement of disputes between the Parties concerning the interpretation implementation or application of the Agreement
ADDITIONAL PROTOCOL
NEXT STEPShellip
1 Free Movement of Capitals 11 Financial integration - Pensions portability along with the persons - Foreign Investment promotion policy - Financial inclusion 12 Infrastructure investment - Regional Investment Fund 13 Public Finance - Mechanism for Exchange of Fiscal Information - Natural Disasters Joint Risk Management
2 Free Movement of Goods amp Services - Homologation administrative norms - Foreign Trade Single Windows interoperability - Consumer Rights Booklet - MoU on Exchange Information about controversy solutions for consumer protection - Mining projects
3 Free Movement of People Pacific Alliance Visa
4 Cooperation aerospace cooperation operations start of the Joint Cooperation Fund of the Pacific Alliance
Contexto negociacioacuten TPP DIRECON
El TPP es el proceso de negociacioacuten econoacutemica y comercial maacutes importante que se desarrolla en el escenario internacional que surge con el objetivo de generar un proceso de integracioacuten en la regioacuten Asia Paciacutefico Negociacioacuten de 12 paiacuteses entre las cuales se encuentran dos de las tres economiacuteas maacutes grandes del mundo Espacio donde se estaacute definiendo la nueva arquitectura del comercio internacional estableciendo las reglas o estaacutendares que lo regiraacuten durante los proacuteximos antildeos Ha sido definido por los miembros de APEC como un elemento central para la construccioacuten de la Zona de Libre de Comercio en el Asia Paciacutefico (regioacuten con los niveles maacutes altos de dinamismo econoacutemico) Respecto de nuestros acuerdos vigentes con paiacuteses TPP seraacute posible completar su cobertura incluyendo temas como servicios compras puacuteblicas e inversiones Beneficios Especiacuteficos Acceso a mercados Compras Puacuteblicas Normas de origen y Acumulacioacuten Facilitacioacuten de Comercio Servicios Inversiones Entrada Temporal de Personas de Negocios Comercio Electroacutenico y Telecomunicaciones Asuntos Ambientales y Laborales Coherencia Regulatoria Otros beneficios
TRANSPACIFIC PARTENERSHIP AGREEMENT (TPP) MEMBER COUNTRIES
TPP is one of the most important trade integration initiatives in the current international scenario Two of the three largest economies in the world are members The agreement will help establish rules for international trade in the Asia Pacific region It has been described by APEC members as a central element for the construction of the Free Trade Area in the Asia Pacific
TRANS PACIFIC PARTNERSHIP (TPP)
38
TPP ndash IMPORTANCE FOR CHILE
Chile will participate in the formulation of rules and standards which will govern international trade during the next century TPP will be a key element to consolidate trade integration between Chile and Asia TPP will position Chile as a business platform to access markets of Latin-America It will enable Chile to enhance coverage of current existing bilateral FTAs
39
CHILEAN EXPORTS TO THAILAND MAIN PRODUCTS
13
MAIN CHILEAN EXPORTS TO THAILAND
(Thousand US$)
HS CODE DESCRIPTION 2015
470311 Chemical wood pulp 47699
740311 Copper cathodes 46029
030313 Frozen Atlantic Salmon 28877
310420 Potassium Chloride 16369
030314 Frozen Trout 15326
030312 Frozen Pacific Salmon 9842
440710 Coniferous Wood Sawn Sliced Etc
Over 6 Mm Thick 4624
0080610 Fresh Grapes 4356
Source Studies Department DIRECON-PROCHILE over data of Global Trade Atlas
SHARE IN THAILAND IMPORTS
2015
372
25
622
59
625
192
106
34
14
4 CHILE ndash THAILAND FTA CONTENTS amp OPPORTUNITIES
FTAacuteS TIMELINE amp CONTENTS
Disciplines Negotiated
Trade in Goods
Rules of Origin
Custom Procedures and Cooperation
Sanitary and Phytosanitary Measures
Technical Barriers to Trade
Trade Remedies
Trade in Services
Financial Services
Dispute Settlement
Transparency
raquo Joint Study Group
raquo Negotiations began in April 2011
raquo Total of 6 Rounds of negotiations where held
raquo Negotiations concluded successfully in August 2012
raquo FTA was signed early October 2013
raquo FTA in force since November 5th 2015
CHILEAN EXPORTS TO THAILAND CHANGES SINCE FTA ENTERED INTO FORCE
16
Subsector Jan
2015
Cooper 5163406
Salmon and trout 6779878
Fish oil 64673
Leather and fur industries 139110
Dry fruits and vegetables 0
Mussels 53050
Sparkling wine 0
Jan
2016
17447064
8156678
311745
171978
83090
80000
4560
Tariff under FTA
0
0-5
0
0
0-40
10-15
0
US$ Dif Nov 1514
28053867
1674381
236101
184659
172923
16190
1480
THAI EXPORTS TO CHILE CHANGES SINCE FTA ENTERED INTO FORCE
17
Subsector Jan
2015
Transportation Equipment Manufacturing 29283305
Mechanic machinery equipment 3756793
Electric machinery equipment 673988
Jewelery and goldsmith 199696
Plastic raw materials 0
Jan
2016
40623355
4161988
474726
640271
196210
Tariff under FTA
0
0 -5 antildeos
0
0
0
US$ Dif Nov 1514
5965017
2324327
2159999
740078
275471
18
MARKET ACCES OFFERs UNDER THE FTA
Thailand granted Chile the
elimination of 901 of tariff lines in immediate category
THAI OFFER
CATEGORY PRODUCTS
NT0 (inmmediate) 7383
NT0 (O tariff for quotas WTO)
87
NT1 ( Year 3) 142
NT2 (Year 5) 575
SL (Year 8) 102
Total 8300
CHILEAN OFFER
CATEGORY PRODUCTS
Year 0 6989
Year 3 321
Year 5 298
SL (Year 8) 107
Total 7715
On the other hand Chile granted immediate tariff elimination to 906 of tariff lines
TARIFF
NMF FTA
5 Year 0
10 Year 0
30 Year 0
0 Year 0
30 Year 0 - Year 3
30 Year 0
30 Year 0
5 Year 0
40 0 in 2016
10 Year 5
10 Year 0
5 - 10 Year 0
30 Year 0 - Year 5
30 Year 0 - Year 5
27 Year 0 - Year 5
CHILEAN EXPORTS TO THAILAND POTENTIAL NEW EXPORTS (thousand US$)
19 Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Description
441239 Plywood consisting solely of sheets of wood
250100 Salt pure sodium chlorideampsea water
080830 Pears
710691 Silver in unwrought forms
200799 Jamsfruit jelliesfruitnut pureacuteeamppaste
200290 Tomatoes prepared or preserved
190490 Cerealsin grain form
310230 Ammonium nitrate pack weighg gt 10 kg
080520 Mandarins
200979 Apple juice
080212 Almondsfresh or driedshelled or peeled
190110 Prep of cerealsflourstarch
200870 Peaches preserved
080510 Oranges fresh or dried
150910 Olive oil virgin
Chiles exports to
World
Thailands imports
from world
348825 28662
189179 7021
141149 40326
139243 304920
129069 8503
127035 19816
106145 12496
95225 12932
93902 106357
90919 5120
87070 33113
73026 92985
72334 20709
62333 5988
57921 8231
THAI EXPORTS TO CHILE POTENTIAL NEW EXPORTS (thousand US$)
20
Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Description
400122 Technically specified natural rubber
870333 Automobiles with diesel engine 2500 cc
271012 Light petroleum oils and preparations
730890 Structuresparts of structures
030617 Other frozen shrimps and prawns
Hair shampoos
390760 Polyethylene terephthalate
330590 Hair preparations nes
390410 Polyvinyl chloride
390720 Polyethers nes
761510 Table kitchen or other household articles
850710 Lead-acid electric accumulators
841199 Parts of gas turbines nes
330610 Dentifrices
Thailand`s exports to
world
Chiles imports
from world
2670862 27215
1555558 85799
1376742 402119
851605 168678
624041 32211
422492 67538
383853 93937
346316 80249
276977 71610
250879 45834
226498 28908
207511 77064
193332 38427
183200 36079
TARIFF
NMF FTA
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
THAILAND EXPORTS KEY PRODUCTS (thousand US$)
21
Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Product label Exported
Thailands 2015
847170 Computer data storage units 10943347
870421 Diesel powered trucks 6798984
271019 Petroleum oils and preparations 5427876
100630 Rice semi-milled or wholly milled 4078187
847330 Parts and accessories of automatic data
processg machines 3253436
854231 Electronic integrated circuits as
processors and controllers 2865029
400122 Technically specified natural rubber
(TSNR) 2670862
870899 Motor vehicle parts nes 2666050
870323 Automobiles w reciprocatg piston engine
displacg gt 1500 cc to 3000 cc 2611009
Thailands exports to
Chile
Chiles imports
from world
2 123864
287582 928981
5 3598452
1656 70351
4 53079
- 14139
- 27215
2045 554180
602 1660996
NMF FTA
6 Year 0
6 Year 0
6 Year 0
6 Year 5
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
Chapter on Rules of Origin meets the standards that Chile has negotiated in recent agreements Committees regarding Technical Barriers to Trade (TBT ) and Sanitary and Phytosanitary Measures (SPS) are included Regarding the chapter on services will grant new opportunities in trade in services The inclusion of a chapter on financial services enable financial institutions in Chile and Thailand obtain a non- discriminatory treatment and to establish andor acquire financial institutions in both financial markets The Agreement also includes a Cooperation chapter that will allow closer cooperation relations between the public private and academic spheres in areas of mutual interest Commitment of start negotiation of an investment chapter
22
CHILE ndash THAILAND FTA
23
5 PRODUCTION LINKAGES
A new step forward in Chilean trade policy designed to leverage business opportunities generated by Chilersquos network of trade agreements Consists of business alliances with trading partners for in-country goods production using imported supplies Production linkages involve processing partner-country materials or parts in Chile Finished value-added goods can then be re-exported to countries making use of Chile tariff reductions Rules of origin play a fundamental role in securing tariff reductions
24
WHAT ARE PRODUCTION LINKAGES
FIRST STEP
The material supply or consumable good is imported to the country with preferential treatment
SUMMARY
Production or
assembly in Chile
FTA Final good
Supplies
Preferencia
Arancelaria
Rules of
Origin
FTAs
Tariff
SECOND STEP The production process is carried out in Chile or Thailand in order to comply with the rules of origin of different trade agreements
THRID STEP
The final good is exported (with Chilean of Thai origin) to other markets
EXAMPLE
Chile ndash Thailand Free Trade
Agreement Potential Market of 566 million
consumers
0 Tariff 0 Tariff
PYMEs
Cooperacioacuten
Servicios
Coherencia Regulatoria
Laboral
Defensa Comercial
Medidas Sanitarias y Fitosanitarias Competitividad
Desarrollo
Temas aduaneros Solucioacuten de Controversias
Reglas de Origen
Inversiones
Obstaacuteculos Teacutecnicos al Comercio
Acceso a Mercados Servicios Financieros
Comercio Electroacutenico
Asuntos Legales Administracioacuten Transparencia Anticorrupcioacuten
Excepciones Disposiciones Finales
Medio Ambiente
Propiedad Intelectual
Empresas del Estado
Entrada Temporal
Compras Puacuteblicas
Telecomunicaciones
CONTEXTO Temas Bajo Negociacioacuten
27
6 FINAL REMARKS
The Agreement will allow both countries Establish economic alliances and reciprocal investments
Simplify sanitary and technical regulations
Standardize customs procedures
Faster addressing trade problems through contact points and
Technical Committees
28
MAIN BENEFITS
THANK YOU
Diego Torres Diez
Head Asia and Oceania Department
General Directorate for International Economic Affairs
April 2016
PACIFIC ALLIANCE FIGURES
6th world economy (28 world GDP)
35 population of LAC (216 millions)
527 Latin American exports
37 GDP and 31 FDI of LAC
Source IMF (World Economic Outlook octubre 2014) y World Factbook-CIA World Investment Report 2014 -UNCTAD Trademap () 2013
ACHIEVEMENTS
Framework Agreement
First Additional Protocol to the Framework Agreement
Aditional dispositions on e-commerce amp telecommunications
Intellectual property projects
Consolidation of MILA biggest Latinamerica stock market
Joint Events on Export Promotion
Visa acilities for business people staying over 180 days
Visa tourist exemption
Student Grants
Joint Cooperation Fund of the Pacific Alliance
Inter-institutional Agreement on pharmaceuticals products
Cooperation Agreement in Tourism
Joint Diplomatic and Trade Offices
Migratory Exchange of Information XX032014
Oficina Comercial
ADDITIONAL PROTOCOL
Tariffs elimination bull 100 Tariffs elimination bull 92 immediately once entry into force bull 8 short and medium term (between 3 and 17 years)
Rules of origin Flexibility single rule and accumulation through PA member in order to the commercial integration
Trade facilitation Electronic Certification of Origin Interoperability of the single window Custom Cooperation Authorized Economic Operator
Sanitary and Phytosanitary Measures Increase transparency in the application of sanitary and phytosanitary measures and strengthen the use of science-based
Technical Barriers to Trade Increase transparency and the regulatory cooperation among other matters
Comprehensive Chapters in Services and Investment
Cross-Border Trade in Services and Investment Protect cross border trade in services the investors and their investments in the countries of the Pacific Alliance Telecomunications Ensure of telecommunications services in the region of the Pacific Alliance under free competition particularly in relation to the dominant suppliers E-Commerce Electronic transactions of goods and services shall be regulated including digital products to ensure their safety and efficiency Maritime Services Grant a non-discriminatory treatment to ships from PA countries in its ports the recognition of the documentation of vessels and crew among others Financial Services Grant legal certainty for investors and service providers from the four countries in the financial sector consolidating the laws of each country
ADDITIONAL PROTOCOL
Government Procurement Facilitate and encourage the participation of MSMEs as well expand the coverage of existing agreements including rules and actions
Dispute Settlement Mechanism address to the prevention or settlement of disputes between the Parties concerning the interpretation implementation or application of the Agreement
ADDITIONAL PROTOCOL
NEXT STEPShellip
1 Free Movement of Capitals 11 Financial integration - Pensions portability along with the persons - Foreign Investment promotion policy - Financial inclusion 12 Infrastructure investment - Regional Investment Fund 13 Public Finance - Mechanism for Exchange of Fiscal Information - Natural Disasters Joint Risk Management
2 Free Movement of Goods amp Services - Homologation administrative norms - Foreign Trade Single Windows interoperability - Consumer Rights Booklet - MoU on Exchange Information about controversy solutions for consumer protection - Mining projects
3 Free Movement of People Pacific Alliance Visa
4 Cooperation aerospace cooperation operations start of the Joint Cooperation Fund of the Pacific Alliance
Contexto negociacioacuten TPP DIRECON
El TPP es el proceso de negociacioacuten econoacutemica y comercial maacutes importante que se desarrolla en el escenario internacional que surge con el objetivo de generar un proceso de integracioacuten en la regioacuten Asia Paciacutefico Negociacioacuten de 12 paiacuteses entre las cuales se encuentran dos de las tres economiacuteas maacutes grandes del mundo Espacio donde se estaacute definiendo la nueva arquitectura del comercio internacional estableciendo las reglas o estaacutendares que lo regiraacuten durante los proacuteximos antildeos Ha sido definido por los miembros de APEC como un elemento central para la construccioacuten de la Zona de Libre de Comercio en el Asia Paciacutefico (regioacuten con los niveles maacutes altos de dinamismo econoacutemico) Respecto de nuestros acuerdos vigentes con paiacuteses TPP seraacute posible completar su cobertura incluyendo temas como servicios compras puacuteblicas e inversiones Beneficios Especiacuteficos Acceso a mercados Compras Puacuteblicas Normas de origen y Acumulacioacuten Facilitacioacuten de Comercio Servicios Inversiones Entrada Temporal de Personas de Negocios Comercio Electroacutenico y Telecomunicaciones Asuntos Ambientales y Laborales Coherencia Regulatoria Otros beneficios
TRANSPACIFIC PARTENERSHIP AGREEMENT (TPP) MEMBER COUNTRIES
TPP is one of the most important trade integration initiatives in the current international scenario Two of the three largest economies in the world are members The agreement will help establish rules for international trade in the Asia Pacific region It has been described by APEC members as a central element for the construction of the Free Trade Area in the Asia Pacific
TRANS PACIFIC PARTNERSHIP (TPP)
38
TPP ndash IMPORTANCE FOR CHILE
Chile will participate in the formulation of rules and standards which will govern international trade during the next century TPP will be a key element to consolidate trade integration between Chile and Asia TPP will position Chile as a business platform to access markets of Latin-America It will enable Chile to enhance coverage of current existing bilateral FTAs
39
14
4 CHILE ndash THAILAND FTA CONTENTS amp OPPORTUNITIES
FTAacuteS TIMELINE amp CONTENTS
Disciplines Negotiated
Trade in Goods
Rules of Origin
Custom Procedures and Cooperation
Sanitary and Phytosanitary Measures
Technical Barriers to Trade
Trade Remedies
Trade in Services
Financial Services
Dispute Settlement
Transparency
raquo Joint Study Group
raquo Negotiations began in April 2011
raquo Total of 6 Rounds of negotiations where held
raquo Negotiations concluded successfully in August 2012
raquo FTA was signed early October 2013
raquo FTA in force since November 5th 2015
CHILEAN EXPORTS TO THAILAND CHANGES SINCE FTA ENTERED INTO FORCE
16
Subsector Jan
2015
Cooper 5163406
Salmon and trout 6779878
Fish oil 64673
Leather and fur industries 139110
Dry fruits and vegetables 0
Mussels 53050
Sparkling wine 0
Jan
2016
17447064
8156678
311745
171978
83090
80000
4560
Tariff under FTA
0
0-5
0
0
0-40
10-15
0
US$ Dif Nov 1514
28053867
1674381
236101
184659
172923
16190
1480
THAI EXPORTS TO CHILE CHANGES SINCE FTA ENTERED INTO FORCE
17
Subsector Jan
2015
Transportation Equipment Manufacturing 29283305
Mechanic machinery equipment 3756793
Electric machinery equipment 673988
Jewelery and goldsmith 199696
Plastic raw materials 0
Jan
2016
40623355
4161988
474726
640271
196210
Tariff under FTA
0
0 -5 antildeos
0
0
0
US$ Dif Nov 1514
5965017
2324327
2159999
740078
275471
18
MARKET ACCES OFFERs UNDER THE FTA
Thailand granted Chile the
elimination of 901 of tariff lines in immediate category
THAI OFFER
CATEGORY PRODUCTS
NT0 (inmmediate) 7383
NT0 (O tariff for quotas WTO)
87
NT1 ( Year 3) 142
NT2 (Year 5) 575
SL (Year 8) 102
Total 8300
CHILEAN OFFER
CATEGORY PRODUCTS
Year 0 6989
Year 3 321
Year 5 298
SL (Year 8) 107
Total 7715
On the other hand Chile granted immediate tariff elimination to 906 of tariff lines
TARIFF
NMF FTA
5 Year 0
10 Year 0
30 Year 0
0 Year 0
30 Year 0 - Year 3
30 Year 0
30 Year 0
5 Year 0
40 0 in 2016
10 Year 5
10 Year 0
5 - 10 Year 0
30 Year 0 - Year 5
30 Year 0 - Year 5
27 Year 0 - Year 5
CHILEAN EXPORTS TO THAILAND POTENTIAL NEW EXPORTS (thousand US$)
19 Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Description
441239 Plywood consisting solely of sheets of wood
250100 Salt pure sodium chlorideampsea water
080830 Pears
710691 Silver in unwrought forms
200799 Jamsfruit jelliesfruitnut pureacuteeamppaste
200290 Tomatoes prepared or preserved
190490 Cerealsin grain form
310230 Ammonium nitrate pack weighg gt 10 kg
080520 Mandarins
200979 Apple juice
080212 Almondsfresh or driedshelled or peeled
190110 Prep of cerealsflourstarch
200870 Peaches preserved
080510 Oranges fresh or dried
150910 Olive oil virgin
Chiles exports to
World
Thailands imports
from world
348825 28662
189179 7021
141149 40326
139243 304920
129069 8503
127035 19816
106145 12496
95225 12932
93902 106357
90919 5120
87070 33113
73026 92985
72334 20709
62333 5988
57921 8231
THAI EXPORTS TO CHILE POTENTIAL NEW EXPORTS (thousand US$)
20
Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Description
400122 Technically specified natural rubber
870333 Automobiles with diesel engine 2500 cc
271012 Light petroleum oils and preparations
730890 Structuresparts of structures
030617 Other frozen shrimps and prawns
Hair shampoos
390760 Polyethylene terephthalate
330590 Hair preparations nes
390410 Polyvinyl chloride
390720 Polyethers nes
761510 Table kitchen or other household articles
850710 Lead-acid electric accumulators
841199 Parts of gas turbines nes
330610 Dentifrices
Thailand`s exports to
world
Chiles imports
from world
2670862 27215
1555558 85799
1376742 402119
851605 168678
624041 32211
422492 67538
383853 93937
346316 80249
276977 71610
250879 45834
226498 28908
207511 77064
193332 38427
183200 36079
TARIFF
NMF FTA
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
THAILAND EXPORTS KEY PRODUCTS (thousand US$)
21
Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Product label Exported
Thailands 2015
847170 Computer data storage units 10943347
870421 Diesel powered trucks 6798984
271019 Petroleum oils and preparations 5427876
100630 Rice semi-milled or wholly milled 4078187
847330 Parts and accessories of automatic data
processg machines 3253436
854231 Electronic integrated circuits as
processors and controllers 2865029
400122 Technically specified natural rubber
(TSNR) 2670862
870899 Motor vehicle parts nes 2666050
870323 Automobiles w reciprocatg piston engine
displacg gt 1500 cc to 3000 cc 2611009
Thailands exports to
Chile
Chiles imports
from world
2 123864
287582 928981
5 3598452
1656 70351
4 53079
- 14139
- 27215
2045 554180
602 1660996
NMF FTA
6 Year 0
6 Year 0
6 Year 0
6 Year 5
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
Chapter on Rules of Origin meets the standards that Chile has negotiated in recent agreements Committees regarding Technical Barriers to Trade (TBT ) and Sanitary and Phytosanitary Measures (SPS) are included Regarding the chapter on services will grant new opportunities in trade in services The inclusion of a chapter on financial services enable financial institutions in Chile and Thailand obtain a non- discriminatory treatment and to establish andor acquire financial institutions in both financial markets The Agreement also includes a Cooperation chapter that will allow closer cooperation relations between the public private and academic spheres in areas of mutual interest Commitment of start negotiation of an investment chapter
22
CHILE ndash THAILAND FTA
23
5 PRODUCTION LINKAGES
A new step forward in Chilean trade policy designed to leverage business opportunities generated by Chilersquos network of trade agreements Consists of business alliances with trading partners for in-country goods production using imported supplies Production linkages involve processing partner-country materials or parts in Chile Finished value-added goods can then be re-exported to countries making use of Chile tariff reductions Rules of origin play a fundamental role in securing tariff reductions
24
WHAT ARE PRODUCTION LINKAGES
FIRST STEP
The material supply or consumable good is imported to the country with preferential treatment
SUMMARY
Production or
assembly in Chile
FTA Final good
Supplies
Preferencia
Arancelaria
Rules of
Origin
FTAs
Tariff
SECOND STEP The production process is carried out in Chile or Thailand in order to comply with the rules of origin of different trade agreements
THRID STEP
The final good is exported (with Chilean of Thai origin) to other markets
EXAMPLE
Chile ndash Thailand Free Trade
Agreement Potential Market of 566 million
consumers
0 Tariff 0 Tariff
PYMEs
Cooperacioacuten
Servicios
Coherencia Regulatoria
Laboral
Defensa Comercial
Medidas Sanitarias y Fitosanitarias Competitividad
Desarrollo
Temas aduaneros Solucioacuten de Controversias
Reglas de Origen
Inversiones
Obstaacuteculos Teacutecnicos al Comercio
Acceso a Mercados Servicios Financieros
Comercio Electroacutenico
Asuntos Legales Administracioacuten Transparencia Anticorrupcioacuten
Excepciones Disposiciones Finales
Medio Ambiente
Propiedad Intelectual
Empresas del Estado
Entrada Temporal
Compras Puacuteblicas
Telecomunicaciones
CONTEXTO Temas Bajo Negociacioacuten
27
6 FINAL REMARKS
The Agreement will allow both countries Establish economic alliances and reciprocal investments
Simplify sanitary and technical regulations
Standardize customs procedures
Faster addressing trade problems through contact points and
Technical Committees
28
MAIN BENEFITS
THANK YOU
Diego Torres Diez
Head Asia and Oceania Department
General Directorate for International Economic Affairs
April 2016
PACIFIC ALLIANCE FIGURES
6th world economy (28 world GDP)
35 population of LAC (216 millions)
527 Latin American exports
37 GDP and 31 FDI of LAC
Source IMF (World Economic Outlook octubre 2014) y World Factbook-CIA World Investment Report 2014 -UNCTAD Trademap () 2013
ACHIEVEMENTS
Framework Agreement
First Additional Protocol to the Framework Agreement
Aditional dispositions on e-commerce amp telecommunications
Intellectual property projects
Consolidation of MILA biggest Latinamerica stock market
Joint Events on Export Promotion
Visa acilities for business people staying over 180 days
Visa tourist exemption
Student Grants
Joint Cooperation Fund of the Pacific Alliance
Inter-institutional Agreement on pharmaceuticals products
Cooperation Agreement in Tourism
Joint Diplomatic and Trade Offices
Migratory Exchange of Information XX032014
Oficina Comercial
ADDITIONAL PROTOCOL
Tariffs elimination bull 100 Tariffs elimination bull 92 immediately once entry into force bull 8 short and medium term (between 3 and 17 years)
Rules of origin Flexibility single rule and accumulation through PA member in order to the commercial integration
Trade facilitation Electronic Certification of Origin Interoperability of the single window Custom Cooperation Authorized Economic Operator
Sanitary and Phytosanitary Measures Increase transparency in the application of sanitary and phytosanitary measures and strengthen the use of science-based
Technical Barriers to Trade Increase transparency and the regulatory cooperation among other matters
Comprehensive Chapters in Services and Investment
Cross-Border Trade in Services and Investment Protect cross border trade in services the investors and their investments in the countries of the Pacific Alliance Telecomunications Ensure of telecommunications services in the region of the Pacific Alliance under free competition particularly in relation to the dominant suppliers E-Commerce Electronic transactions of goods and services shall be regulated including digital products to ensure their safety and efficiency Maritime Services Grant a non-discriminatory treatment to ships from PA countries in its ports the recognition of the documentation of vessels and crew among others Financial Services Grant legal certainty for investors and service providers from the four countries in the financial sector consolidating the laws of each country
ADDITIONAL PROTOCOL
Government Procurement Facilitate and encourage the participation of MSMEs as well expand the coverage of existing agreements including rules and actions
Dispute Settlement Mechanism address to the prevention or settlement of disputes between the Parties concerning the interpretation implementation or application of the Agreement
ADDITIONAL PROTOCOL
NEXT STEPShellip
1 Free Movement of Capitals 11 Financial integration - Pensions portability along with the persons - Foreign Investment promotion policy - Financial inclusion 12 Infrastructure investment - Regional Investment Fund 13 Public Finance - Mechanism for Exchange of Fiscal Information - Natural Disasters Joint Risk Management
2 Free Movement of Goods amp Services - Homologation administrative norms - Foreign Trade Single Windows interoperability - Consumer Rights Booklet - MoU on Exchange Information about controversy solutions for consumer protection - Mining projects
3 Free Movement of People Pacific Alliance Visa
4 Cooperation aerospace cooperation operations start of the Joint Cooperation Fund of the Pacific Alliance
Contexto negociacioacuten TPP DIRECON
El TPP es el proceso de negociacioacuten econoacutemica y comercial maacutes importante que se desarrolla en el escenario internacional que surge con el objetivo de generar un proceso de integracioacuten en la regioacuten Asia Paciacutefico Negociacioacuten de 12 paiacuteses entre las cuales se encuentran dos de las tres economiacuteas maacutes grandes del mundo Espacio donde se estaacute definiendo la nueva arquitectura del comercio internacional estableciendo las reglas o estaacutendares que lo regiraacuten durante los proacuteximos antildeos Ha sido definido por los miembros de APEC como un elemento central para la construccioacuten de la Zona de Libre de Comercio en el Asia Paciacutefico (regioacuten con los niveles maacutes altos de dinamismo econoacutemico) Respecto de nuestros acuerdos vigentes con paiacuteses TPP seraacute posible completar su cobertura incluyendo temas como servicios compras puacuteblicas e inversiones Beneficios Especiacuteficos Acceso a mercados Compras Puacuteblicas Normas de origen y Acumulacioacuten Facilitacioacuten de Comercio Servicios Inversiones Entrada Temporal de Personas de Negocios Comercio Electroacutenico y Telecomunicaciones Asuntos Ambientales y Laborales Coherencia Regulatoria Otros beneficios
TRANSPACIFIC PARTENERSHIP AGREEMENT (TPP) MEMBER COUNTRIES
TPP is one of the most important trade integration initiatives in the current international scenario Two of the three largest economies in the world are members The agreement will help establish rules for international trade in the Asia Pacific region It has been described by APEC members as a central element for the construction of the Free Trade Area in the Asia Pacific
TRANS PACIFIC PARTNERSHIP (TPP)
38
TPP ndash IMPORTANCE FOR CHILE
Chile will participate in the formulation of rules and standards which will govern international trade during the next century TPP will be a key element to consolidate trade integration between Chile and Asia TPP will position Chile as a business platform to access markets of Latin-America It will enable Chile to enhance coverage of current existing bilateral FTAs
39
FTAacuteS TIMELINE amp CONTENTS
Disciplines Negotiated
Trade in Goods
Rules of Origin
Custom Procedures and Cooperation
Sanitary and Phytosanitary Measures
Technical Barriers to Trade
Trade Remedies
Trade in Services
Financial Services
Dispute Settlement
Transparency
raquo Joint Study Group
raquo Negotiations began in April 2011
raquo Total of 6 Rounds of negotiations where held
raquo Negotiations concluded successfully in August 2012
raquo FTA was signed early October 2013
raquo FTA in force since November 5th 2015
CHILEAN EXPORTS TO THAILAND CHANGES SINCE FTA ENTERED INTO FORCE
16
Subsector Jan
2015
Cooper 5163406
Salmon and trout 6779878
Fish oil 64673
Leather and fur industries 139110
Dry fruits and vegetables 0
Mussels 53050
Sparkling wine 0
Jan
2016
17447064
8156678
311745
171978
83090
80000
4560
Tariff under FTA
0
0-5
0
0
0-40
10-15
0
US$ Dif Nov 1514
28053867
1674381
236101
184659
172923
16190
1480
THAI EXPORTS TO CHILE CHANGES SINCE FTA ENTERED INTO FORCE
17
Subsector Jan
2015
Transportation Equipment Manufacturing 29283305
Mechanic machinery equipment 3756793
Electric machinery equipment 673988
Jewelery and goldsmith 199696
Plastic raw materials 0
Jan
2016
40623355
4161988
474726
640271
196210
Tariff under FTA
0
0 -5 antildeos
0
0
0
US$ Dif Nov 1514
5965017
2324327
2159999
740078
275471
18
MARKET ACCES OFFERs UNDER THE FTA
Thailand granted Chile the
elimination of 901 of tariff lines in immediate category
THAI OFFER
CATEGORY PRODUCTS
NT0 (inmmediate) 7383
NT0 (O tariff for quotas WTO)
87
NT1 ( Year 3) 142
NT2 (Year 5) 575
SL (Year 8) 102
Total 8300
CHILEAN OFFER
CATEGORY PRODUCTS
Year 0 6989
Year 3 321
Year 5 298
SL (Year 8) 107
Total 7715
On the other hand Chile granted immediate tariff elimination to 906 of tariff lines
TARIFF
NMF FTA
5 Year 0
10 Year 0
30 Year 0
0 Year 0
30 Year 0 - Year 3
30 Year 0
30 Year 0
5 Year 0
40 0 in 2016
10 Year 5
10 Year 0
5 - 10 Year 0
30 Year 0 - Year 5
30 Year 0 - Year 5
27 Year 0 - Year 5
CHILEAN EXPORTS TO THAILAND POTENTIAL NEW EXPORTS (thousand US$)
19 Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Description
441239 Plywood consisting solely of sheets of wood
250100 Salt pure sodium chlorideampsea water
080830 Pears
710691 Silver in unwrought forms
200799 Jamsfruit jelliesfruitnut pureacuteeamppaste
200290 Tomatoes prepared or preserved
190490 Cerealsin grain form
310230 Ammonium nitrate pack weighg gt 10 kg
080520 Mandarins
200979 Apple juice
080212 Almondsfresh or driedshelled or peeled
190110 Prep of cerealsflourstarch
200870 Peaches preserved
080510 Oranges fresh or dried
150910 Olive oil virgin
Chiles exports to
World
Thailands imports
from world
348825 28662
189179 7021
141149 40326
139243 304920
129069 8503
127035 19816
106145 12496
95225 12932
93902 106357
90919 5120
87070 33113
73026 92985
72334 20709
62333 5988
57921 8231
THAI EXPORTS TO CHILE POTENTIAL NEW EXPORTS (thousand US$)
20
Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Description
400122 Technically specified natural rubber
870333 Automobiles with diesel engine 2500 cc
271012 Light petroleum oils and preparations
730890 Structuresparts of structures
030617 Other frozen shrimps and prawns
Hair shampoos
390760 Polyethylene terephthalate
330590 Hair preparations nes
390410 Polyvinyl chloride
390720 Polyethers nes
761510 Table kitchen or other household articles
850710 Lead-acid electric accumulators
841199 Parts of gas turbines nes
330610 Dentifrices
Thailand`s exports to
world
Chiles imports
from world
2670862 27215
1555558 85799
1376742 402119
851605 168678
624041 32211
422492 67538
383853 93937
346316 80249
276977 71610
250879 45834
226498 28908
207511 77064
193332 38427
183200 36079
TARIFF
NMF FTA
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
THAILAND EXPORTS KEY PRODUCTS (thousand US$)
21
Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Product label Exported
Thailands 2015
847170 Computer data storage units 10943347
870421 Diesel powered trucks 6798984
271019 Petroleum oils and preparations 5427876
100630 Rice semi-milled or wholly milled 4078187
847330 Parts and accessories of automatic data
processg machines 3253436
854231 Electronic integrated circuits as
processors and controllers 2865029
400122 Technically specified natural rubber
(TSNR) 2670862
870899 Motor vehicle parts nes 2666050
870323 Automobiles w reciprocatg piston engine
displacg gt 1500 cc to 3000 cc 2611009
Thailands exports to
Chile
Chiles imports
from world
2 123864
287582 928981
5 3598452
1656 70351
4 53079
- 14139
- 27215
2045 554180
602 1660996
NMF FTA
6 Year 0
6 Year 0
6 Year 0
6 Year 5
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
Chapter on Rules of Origin meets the standards that Chile has negotiated in recent agreements Committees regarding Technical Barriers to Trade (TBT ) and Sanitary and Phytosanitary Measures (SPS) are included Regarding the chapter on services will grant new opportunities in trade in services The inclusion of a chapter on financial services enable financial institutions in Chile and Thailand obtain a non- discriminatory treatment and to establish andor acquire financial institutions in both financial markets The Agreement also includes a Cooperation chapter that will allow closer cooperation relations between the public private and academic spheres in areas of mutual interest Commitment of start negotiation of an investment chapter
22
CHILE ndash THAILAND FTA
23
5 PRODUCTION LINKAGES
A new step forward in Chilean trade policy designed to leverage business opportunities generated by Chilersquos network of trade agreements Consists of business alliances with trading partners for in-country goods production using imported supplies Production linkages involve processing partner-country materials or parts in Chile Finished value-added goods can then be re-exported to countries making use of Chile tariff reductions Rules of origin play a fundamental role in securing tariff reductions
24
WHAT ARE PRODUCTION LINKAGES
FIRST STEP
The material supply or consumable good is imported to the country with preferential treatment
SUMMARY
Production or
assembly in Chile
FTA Final good
Supplies
Preferencia
Arancelaria
Rules of
Origin
FTAs
Tariff
SECOND STEP The production process is carried out in Chile or Thailand in order to comply with the rules of origin of different trade agreements
THRID STEP
The final good is exported (with Chilean of Thai origin) to other markets
EXAMPLE
Chile ndash Thailand Free Trade
Agreement Potential Market of 566 million
consumers
0 Tariff 0 Tariff
PYMEs
Cooperacioacuten
Servicios
Coherencia Regulatoria
Laboral
Defensa Comercial
Medidas Sanitarias y Fitosanitarias Competitividad
Desarrollo
Temas aduaneros Solucioacuten de Controversias
Reglas de Origen
Inversiones
Obstaacuteculos Teacutecnicos al Comercio
Acceso a Mercados Servicios Financieros
Comercio Electroacutenico
Asuntos Legales Administracioacuten Transparencia Anticorrupcioacuten
Excepciones Disposiciones Finales
Medio Ambiente
Propiedad Intelectual
Empresas del Estado
Entrada Temporal
Compras Puacuteblicas
Telecomunicaciones
CONTEXTO Temas Bajo Negociacioacuten
27
6 FINAL REMARKS
The Agreement will allow both countries Establish economic alliances and reciprocal investments
Simplify sanitary and technical regulations
Standardize customs procedures
Faster addressing trade problems through contact points and
Technical Committees
28
MAIN BENEFITS
THANK YOU
Diego Torres Diez
Head Asia and Oceania Department
General Directorate for International Economic Affairs
April 2016
PACIFIC ALLIANCE FIGURES
6th world economy (28 world GDP)
35 population of LAC (216 millions)
527 Latin American exports
37 GDP and 31 FDI of LAC
Source IMF (World Economic Outlook octubre 2014) y World Factbook-CIA World Investment Report 2014 -UNCTAD Trademap () 2013
ACHIEVEMENTS
Framework Agreement
First Additional Protocol to the Framework Agreement
Aditional dispositions on e-commerce amp telecommunications
Intellectual property projects
Consolidation of MILA biggest Latinamerica stock market
Joint Events on Export Promotion
Visa acilities for business people staying over 180 days
Visa tourist exemption
Student Grants
Joint Cooperation Fund of the Pacific Alliance
Inter-institutional Agreement on pharmaceuticals products
Cooperation Agreement in Tourism
Joint Diplomatic and Trade Offices
Migratory Exchange of Information XX032014
Oficina Comercial
ADDITIONAL PROTOCOL
Tariffs elimination bull 100 Tariffs elimination bull 92 immediately once entry into force bull 8 short and medium term (between 3 and 17 years)
Rules of origin Flexibility single rule and accumulation through PA member in order to the commercial integration
Trade facilitation Electronic Certification of Origin Interoperability of the single window Custom Cooperation Authorized Economic Operator
Sanitary and Phytosanitary Measures Increase transparency in the application of sanitary and phytosanitary measures and strengthen the use of science-based
Technical Barriers to Trade Increase transparency and the regulatory cooperation among other matters
Comprehensive Chapters in Services and Investment
Cross-Border Trade in Services and Investment Protect cross border trade in services the investors and their investments in the countries of the Pacific Alliance Telecomunications Ensure of telecommunications services in the region of the Pacific Alliance under free competition particularly in relation to the dominant suppliers E-Commerce Electronic transactions of goods and services shall be regulated including digital products to ensure their safety and efficiency Maritime Services Grant a non-discriminatory treatment to ships from PA countries in its ports the recognition of the documentation of vessels and crew among others Financial Services Grant legal certainty for investors and service providers from the four countries in the financial sector consolidating the laws of each country
ADDITIONAL PROTOCOL
Government Procurement Facilitate and encourage the participation of MSMEs as well expand the coverage of existing agreements including rules and actions
Dispute Settlement Mechanism address to the prevention or settlement of disputes between the Parties concerning the interpretation implementation or application of the Agreement
ADDITIONAL PROTOCOL
NEXT STEPShellip
1 Free Movement of Capitals 11 Financial integration - Pensions portability along with the persons - Foreign Investment promotion policy - Financial inclusion 12 Infrastructure investment - Regional Investment Fund 13 Public Finance - Mechanism for Exchange of Fiscal Information - Natural Disasters Joint Risk Management
2 Free Movement of Goods amp Services - Homologation administrative norms - Foreign Trade Single Windows interoperability - Consumer Rights Booklet - MoU on Exchange Information about controversy solutions for consumer protection - Mining projects
3 Free Movement of People Pacific Alliance Visa
4 Cooperation aerospace cooperation operations start of the Joint Cooperation Fund of the Pacific Alliance
Contexto negociacioacuten TPP DIRECON
El TPP es el proceso de negociacioacuten econoacutemica y comercial maacutes importante que se desarrolla en el escenario internacional que surge con el objetivo de generar un proceso de integracioacuten en la regioacuten Asia Paciacutefico Negociacioacuten de 12 paiacuteses entre las cuales se encuentran dos de las tres economiacuteas maacutes grandes del mundo Espacio donde se estaacute definiendo la nueva arquitectura del comercio internacional estableciendo las reglas o estaacutendares que lo regiraacuten durante los proacuteximos antildeos Ha sido definido por los miembros de APEC como un elemento central para la construccioacuten de la Zona de Libre de Comercio en el Asia Paciacutefico (regioacuten con los niveles maacutes altos de dinamismo econoacutemico) Respecto de nuestros acuerdos vigentes con paiacuteses TPP seraacute posible completar su cobertura incluyendo temas como servicios compras puacuteblicas e inversiones Beneficios Especiacuteficos Acceso a mercados Compras Puacuteblicas Normas de origen y Acumulacioacuten Facilitacioacuten de Comercio Servicios Inversiones Entrada Temporal de Personas de Negocios Comercio Electroacutenico y Telecomunicaciones Asuntos Ambientales y Laborales Coherencia Regulatoria Otros beneficios
TRANSPACIFIC PARTENERSHIP AGREEMENT (TPP) MEMBER COUNTRIES
TPP is one of the most important trade integration initiatives in the current international scenario Two of the three largest economies in the world are members The agreement will help establish rules for international trade in the Asia Pacific region It has been described by APEC members as a central element for the construction of the Free Trade Area in the Asia Pacific
TRANS PACIFIC PARTNERSHIP (TPP)
38
TPP ndash IMPORTANCE FOR CHILE
Chile will participate in the formulation of rules and standards which will govern international trade during the next century TPP will be a key element to consolidate trade integration between Chile and Asia TPP will position Chile as a business platform to access markets of Latin-America It will enable Chile to enhance coverage of current existing bilateral FTAs
39
CHILEAN EXPORTS TO THAILAND CHANGES SINCE FTA ENTERED INTO FORCE
16
Subsector Jan
2015
Cooper 5163406
Salmon and trout 6779878
Fish oil 64673
Leather and fur industries 139110
Dry fruits and vegetables 0
Mussels 53050
Sparkling wine 0
Jan
2016
17447064
8156678
311745
171978
83090
80000
4560
Tariff under FTA
0
0-5
0
0
0-40
10-15
0
US$ Dif Nov 1514
28053867
1674381
236101
184659
172923
16190
1480
THAI EXPORTS TO CHILE CHANGES SINCE FTA ENTERED INTO FORCE
17
Subsector Jan
2015
Transportation Equipment Manufacturing 29283305
Mechanic machinery equipment 3756793
Electric machinery equipment 673988
Jewelery and goldsmith 199696
Plastic raw materials 0
Jan
2016
40623355
4161988
474726
640271
196210
Tariff under FTA
0
0 -5 antildeos
0
0
0
US$ Dif Nov 1514
5965017
2324327
2159999
740078
275471
18
MARKET ACCES OFFERs UNDER THE FTA
Thailand granted Chile the
elimination of 901 of tariff lines in immediate category
THAI OFFER
CATEGORY PRODUCTS
NT0 (inmmediate) 7383
NT0 (O tariff for quotas WTO)
87
NT1 ( Year 3) 142
NT2 (Year 5) 575
SL (Year 8) 102
Total 8300
CHILEAN OFFER
CATEGORY PRODUCTS
Year 0 6989
Year 3 321
Year 5 298
SL (Year 8) 107
Total 7715
On the other hand Chile granted immediate tariff elimination to 906 of tariff lines
TARIFF
NMF FTA
5 Year 0
10 Year 0
30 Year 0
0 Year 0
30 Year 0 - Year 3
30 Year 0
30 Year 0
5 Year 0
40 0 in 2016
10 Year 5
10 Year 0
5 - 10 Year 0
30 Year 0 - Year 5
30 Year 0 - Year 5
27 Year 0 - Year 5
CHILEAN EXPORTS TO THAILAND POTENTIAL NEW EXPORTS (thousand US$)
19 Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Description
441239 Plywood consisting solely of sheets of wood
250100 Salt pure sodium chlorideampsea water
080830 Pears
710691 Silver in unwrought forms
200799 Jamsfruit jelliesfruitnut pureacuteeamppaste
200290 Tomatoes prepared or preserved
190490 Cerealsin grain form
310230 Ammonium nitrate pack weighg gt 10 kg
080520 Mandarins
200979 Apple juice
080212 Almondsfresh or driedshelled or peeled
190110 Prep of cerealsflourstarch
200870 Peaches preserved
080510 Oranges fresh or dried
150910 Olive oil virgin
Chiles exports to
World
Thailands imports
from world
348825 28662
189179 7021
141149 40326
139243 304920
129069 8503
127035 19816
106145 12496
95225 12932
93902 106357
90919 5120
87070 33113
73026 92985
72334 20709
62333 5988
57921 8231
THAI EXPORTS TO CHILE POTENTIAL NEW EXPORTS (thousand US$)
20
Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Description
400122 Technically specified natural rubber
870333 Automobiles with diesel engine 2500 cc
271012 Light petroleum oils and preparations
730890 Structuresparts of structures
030617 Other frozen shrimps and prawns
Hair shampoos
390760 Polyethylene terephthalate
330590 Hair preparations nes
390410 Polyvinyl chloride
390720 Polyethers nes
761510 Table kitchen or other household articles
850710 Lead-acid electric accumulators
841199 Parts of gas turbines nes
330610 Dentifrices
Thailand`s exports to
world
Chiles imports
from world
2670862 27215
1555558 85799
1376742 402119
851605 168678
624041 32211
422492 67538
383853 93937
346316 80249
276977 71610
250879 45834
226498 28908
207511 77064
193332 38427
183200 36079
TARIFF
NMF FTA
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
THAILAND EXPORTS KEY PRODUCTS (thousand US$)
21
Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Product label Exported
Thailands 2015
847170 Computer data storage units 10943347
870421 Diesel powered trucks 6798984
271019 Petroleum oils and preparations 5427876
100630 Rice semi-milled or wholly milled 4078187
847330 Parts and accessories of automatic data
processg machines 3253436
854231 Electronic integrated circuits as
processors and controllers 2865029
400122 Technically specified natural rubber
(TSNR) 2670862
870899 Motor vehicle parts nes 2666050
870323 Automobiles w reciprocatg piston engine
displacg gt 1500 cc to 3000 cc 2611009
Thailands exports to
Chile
Chiles imports
from world
2 123864
287582 928981
5 3598452
1656 70351
4 53079
- 14139
- 27215
2045 554180
602 1660996
NMF FTA
6 Year 0
6 Year 0
6 Year 0
6 Year 5
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
Chapter on Rules of Origin meets the standards that Chile has negotiated in recent agreements Committees regarding Technical Barriers to Trade (TBT ) and Sanitary and Phytosanitary Measures (SPS) are included Regarding the chapter on services will grant new opportunities in trade in services The inclusion of a chapter on financial services enable financial institutions in Chile and Thailand obtain a non- discriminatory treatment and to establish andor acquire financial institutions in both financial markets The Agreement also includes a Cooperation chapter that will allow closer cooperation relations between the public private and academic spheres in areas of mutual interest Commitment of start negotiation of an investment chapter
22
CHILE ndash THAILAND FTA
23
5 PRODUCTION LINKAGES
A new step forward in Chilean trade policy designed to leverage business opportunities generated by Chilersquos network of trade agreements Consists of business alliances with trading partners for in-country goods production using imported supplies Production linkages involve processing partner-country materials or parts in Chile Finished value-added goods can then be re-exported to countries making use of Chile tariff reductions Rules of origin play a fundamental role in securing tariff reductions
24
WHAT ARE PRODUCTION LINKAGES
FIRST STEP
The material supply or consumable good is imported to the country with preferential treatment
SUMMARY
Production or
assembly in Chile
FTA Final good
Supplies
Preferencia
Arancelaria
Rules of
Origin
FTAs
Tariff
SECOND STEP The production process is carried out in Chile or Thailand in order to comply with the rules of origin of different trade agreements
THRID STEP
The final good is exported (with Chilean of Thai origin) to other markets
EXAMPLE
Chile ndash Thailand Free Trade
Agreement Potential Market of 566 million
consumers
0 Tariff 0 Tariff
PYMEs
Cooperacioacuten
Servicios
Coherencia Regulatoria
Laboral
Defensa Comercial
Medidas Sanitarias y Fitosanitarias Competitividad
Desarrollo
Temas aduaneros Solucioacuten de Controversias
Reglas de Origen
Inversiones
Obstaacuteculos Teacutecnicos al Comercio
Acceso a Mercados Servicios Financieros
Comercio Electroacutenico
Asuntos Legales Administracioacuten Transparencia Anticorrupcioacuten
Excepciones Disposiciones Finales
Medio Ambiente
Propiedad Intelectual
Empresas del Estado
Entrada Temporal
Compras Puacuteblicas
Telecomunicaciones
CONTEXTO Temas Bajo Negociacioacuten
27
6 FINAL REMARKS
The Agreement will allow both countries Establish economic alliances and reciprocal investments
Simplify sanitary and technical regulations
Standardize customs procedures
Faster addressing trade problems through contact points and
Technical Committees
28
MAIN BENEFITS
THANK YOU
Diego Torres Diez
Head Asia and Oceania Department
General Directorate for International Economic Affairs
April 2016
PACIFIC ALLIANCE FIGURES
6th world economy (28 world GDP)
35 population of LAC (216 millions)
527 Latin American exports
37 GDP and 31 FDI of LAC
Source IMF (World Economic Outlook octubre 2014) y World Factbook-CIA World Investment Report 2014 -UNCTAD Trademap () 2013
ACHIEVEMENTS
Framework Agreement
First Additional Protocol to the Framework Agreement
Aditional dispositions on e-commerce amp telecommunications
Intellectual property projects
Consolidation of MILA biggest Latinamerica stock market
Joint Events on Export Promotion
Visa acilities for business people staying over 180 days
Visa tourist exemption
Student Grants
Joint Cooperation Fund of the Pacific Alliance
Inter-institutional Agreement on pharmaceuticals products
Cooperation Agreement in Tourism
Joint Diplomatic and Trade Offices
Migratory Exchange of Information XX032014
Oficina Comercial
ADDITIONAL PROTOCOL
Tariffs elimination bull 100 Tariffs elimination bull 92 immediately once entry into force bull 8 short and medium term (between 3 and 17 years)
Rules of origin Flexibility single rule and accumulation through PA member in order to the commercial integration
Trade facilitation Electronic Certification of Origin Interoperability of the single window Custom Cooperation Authorized Economic Operator
Sanitary and Phytosanitary Measures Increase transparency in the application of sanitary and phytosanitary measures and strengthen the use of science-based
Technical Barriers to Trade Increase transparency and the regulatory cooperation among other matters
Comprehensive Chapters in Services and Investment
Cross-Border Trade in Services and Investment Protect cross border trade in services the investors and their investments in the countries of the Pacific Alliance Telecomunications Ensure of telecommunications services in the region of the Pacific Alliance under free competition particularly in relation to the dominant suppliers E-Commerce Electronic transactions of goods and services shall be regulated including digital products to ensure their safety and efficiency Maritime Services Grant a non-discriminatory treatment to ships from PA countries in its ports the recognition of the documentation of vessels and crew among others Financial Services Grant legal certainty for investors and service providers from the four countries in the financial sector consolidating the laws of each country
ADDITIONAL PROTOCOL
Government Procurement Facilitate and encourage the participation of MSMEs as well expand the coverage of existing agreements including rules and actions
Dispute Settlement Mechanism address to the prevention or settlement of disputes between the Parties concerning the interpretation implementation or application of the Agreement
ADDITIONAL PROTOCOL
NEXT STEPShellip
1 Free Movement of Capitals 11 Financial integration - Pensions portability along with the persons - Foreign Investment promotion policy - Financial inclusion 12 Infrastructure investment - Regional Investment Fund 13 Public Finance - Mechanism for Exchange of Fiscal Information - Natural Disasters Joint Risk Management
2 Free Movement of Goods amp Services - Homologation administrative norms - Foreign Trade Single Windows interoperability - Consumer Rights Booklet - MoU on Exchange Information about controversy solutions for consumer protection - Mining projects
3 Free Movement of People Pacific Alliance Visa
4 Cooperation aerospace cooperation operations start of the Joint Cooperation Fund of the Pacific Alliance
Contexto negociacioacuten TPP DIRECON
El TPP es el proceso de negociacioacuten econoacutemica y comercial maacutes importante que se desarrolla en el escenario internacional que surge con el objetivo de generar un proceso de integracioacuten en la regioacuten Asia Paciacutefico Negociacioacuten de 12 paiacuteses entre las cuales se encuentran dos de las tres economiacuteas maacutes grandes del mundo Espacio donde se estaacute definiendo la nueva arquitectura del comercio internacional estableciendo las reglas o estaacutendares que lo regiraacuten durante los proacuteximos antildeos Ha sido definido por los miembros de APEC como un elemento central para la construccioacuten de la Zona de Libre de Comercio en el Asia Paciacutefico (regioacuten con los niveles maacutes altos de dinamismo econoacutemico) Respecto de nuestros acuerdos vigentes con paiacuteses TPP seraacute posible completar su cobertura incluyendo temas como servicios compras puacuteblicas e inversiones Beneficios Especiacuteficos Acceso a mercados Compras Puacuteblicas Normas de origen y Acumulacioacuten Facilitacioacuten de Comercio Servicios Inversiones Entrada Temporal de Personas de Negocios Comercio Electroacutenico y Telecomunicaciones Asuntos Ambientales y Laborales Coherencia Regulatoria Otros beneficios
TRANSPACIFIC PARTENERSHIP AGREEMENT (TPP) MEMBER COUNTRIES
TPP is one of the most important trade integration initiatives in the current international scenario Two of the three largest economies in the world are members The agreement will help establish rules for international trade in the Asia Pacific region It has been described by APEC members as a central element for the construction of the Free Trade Area in the Asia Pacific
TRANS PACIFIC PARTNERSHIP (TPP)
38
TPP ndash IMPORTANCE FOR CHILE
Chile will participate in the formulation of rules and standards which will govern international trade during the next century TPP will be a key element to consolidate trade integration between Chile and Asia TPP will position Chile as a business platform to access markets of Latin-America It will enable Chile to enhance coverage of current existing bilateral FTAs
39
THAI EXPORTS TO CHILE CHANGES SINCE FTA ENTERED INTO FORCE
17
Subsector Jan
2015
Transportation Equipment Manufacturing 29283305
Mechanic machinery equipment 3756793
Electric machinery equipment 673988
Jewelery and goldsmith 199696
Plastic raw materials 0
Jan
2016
40623355
4161988
474726
640271
196210
Tariff under FTA
0
0 -5 antildeos
0
0
0
US$ Dif Nov 1514
5965017
2324327
2159999
740078
275471
18
MARKET ACCES OFFERs UNDER THE FTA
Thailand granted Chile the
elimination of 901 of tariff lines in immediate category
THAI OFFER
CATEGORY PRODUCTS
NT0 (inmmediate) 7383
NT0 (O tariff for quotas WTO)
87
NT1 ( Year 3) 142
NT2 (Year 5) 575
SL (Year 8) 102
Total 8300
CHILEAN OFFER
CATEGORY PRODUCTS
Year 0 6989
Year 3 321
Year 5 298
SL (Year 8) 107
Total 7715
On the other hand Chile granted immediate tariff elimination to 906 of tariff lines
TARIFF
NMF FTA
5 Year 0
10 Year 0
30 Year 0
0 Year 0
30 Year 0 - Year 3
30 Year 0
30 Year 0
5 Year 0
40 0 in 2016
10 Year 5
10 Year 0
5 - 10 Year 0
30 Year 0 - Year 5
30 Year 0 - Year 5
27 Year 0 - Year 5
CHILEAN EXPORTS TO THAILAND POTENTIAL NEW EXPORTS (thousand US$)
19 Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Description
441239 Plywood consisting solely of sheets of wood
250100 Salt pure sodium chlorideampsea water
080830 Pears
710691 Silver in unwrought forms
200799 Jamsfruit jelliesfruitnut pureacuteeamppaste
200290 Tomatoes prepared or preserved
190490 Cerealsin grain form
310230 Ammonium nitrate pack weighg gt 10 kg
080520 Mandarins
200979 Apple juice
080212 Almondsfresh or driedshelled or peeled
190110 Prep of cerealsflourstarch
200870 Peaches preserved
080510 Oranges fresh or dried
150910 Olive oil virgin
Chiles exports to
World
Thailands imports
from world
348825 28662
189179 7021
141149 40326
139243 304920
129069 8503
127035 19816
106145 12496
95225 12932
93902 106357
90919 5120
87070 33113
73026 92985
72334 20709
62333 5988
57921 8231
THAI EXPORTS TO CHILE POTENTIAL NEW EXPORTS (thousand US$)
20
Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Description
400122 Technically specified natural rubber
870333 Automobiles with diesel engine 2500 cc
271012 Light petroleum oils and preparations
730890 Structuresparts of structures
030617 Other frozen shrimps and prawns
Hair shampoos
390760 Polyethylene terephthalate
330590 Hair preparations nes
390410 Polyvinyl chloride
390720 Polyethers nes
761510 Table kitchen or other household articles
850710 Lead-acid electric accumulators
841199 Parts of gas turbines nes
330610 Dentifrices
Thailand`s exports to
world
Chiles imports
from world
2670862 27215
1555558 85799
1376742 402119
851605 168678
624041 32211
422492 67538
383853 93937
346316 80249
276977 71610
250879 45834
226498 28908
207511 77064
193332 38427
183200 36079
TARIFF
NMF FTA
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
THAILAND EXPORTS KEY PRODUCTS (thousand US$)
21
Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Product label Exported
Thailands 2015
847170 Computer data storage units 10943347
870421 Diesel powered trucks 6798984
271019 Petroleum oils and preparations 5427876
100630 Rice semi-milled or wholly milled 4078187
847330 Parts and accessories of automatic data
processg machines 3253436
854231 Electronic integrated circuits as
processors and controllers 2865029
400122 Technically specified natural rubber
(TSNR) 2670862
870899 Motor vehicle parts nes 2666050
870323 Automobiles w reciprocatg piston engine
displacg gt 1500 cc to 3000 cc 2611009
Thailands exports to
Chile
Chiles imports
from world
2 123864
287582 928981
5 3598452
1656 70351
4 53079
- 14139
- 27215
2045 554180
602 1660996
NMF FTA
6 Year 0
6 Year 0
6 Year 0
6 Year 5
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
Chapter on Rules of Origin meets the standards that Chile has negotiated in recent agreements Committees regarding Technical Barriers to Trade (TBT ) and Sanitary and Phytosanitary Measures (SPS) are included Regarding the chapter on services will grant new opportunities in trade in services The inclusion of a chapter on financial services enable financial institutions in Chile and Thailand obtain a non- discriminatory treatment and to establish andor acquire financial institutions in both financial markets The Agreement also includes a Cooperation chapter that will allow closer cooperation relations between the public private and academic spheres in areas of mutual interest Commitment of start negotiation of an investment chapter
22
CHILE ndash THAILAND FTA
23
5 PRODUCTION LINKAGES
A new step forward in Chilean trade policy designed to leverage business opportunities generated by Chilersquos network of trade agreements Consists of business alliances with trading partners for in-country goods production using imported supplies Production linkages involve processing partner-country materials or parts in Chile Finished value-added goods can then be re-exported to countries making use of Chile tariff reductions Rules of origin play a fundamental role in securing tariff reductions
24
WHAT ARE PRODUCTION LINKAGES
FIRST STEP
The material supply or consumable good is imported to the country with preferential treatment
SUMMARY
Production or
assembly in Chile
FTA Final good
Supplies
Preferencia
Arancelaria
Rules of
Origin
FTAs
Tariff
SECOND STEP The production process is carried out in Chile or Thailand in order to comply with the rules of origin of different trade agreements
THRID STEP
The final good is exported (with Chilean of Thai origin) to other markets
EXAMPLE
Chile ndash Thailand Free Trade
Agreement Potential Market of 566 million
consumers
0 Tariff 0 Tariff
PYMEs
Cooperacioacuten
Servicios
Coherencia Regulatoria
Laboral
Defensa Comercial
Medidas Sanitarias y Fitosanitarias Competitividad
Desarrollo
Temas aduaneros Solucioacuten de Controversias
Reglas de Origen
Inversiones
Obstaacuteculos Teacutecnicos al Comercio
Acceso a Mercados Servicios Financieros
Comercio Electroacutenico
Asuntos Legales Administracioacuten Transparencia Anticorrupcioacuten
Excepciones Disposiciones Finales
Medio Ambiente
Propiedad Intelectual
Empresas del Estado
Entrada Temporal
Compras Puacuteblicas
Telecomunicaciones
CONTEXTO Temas Bajo Negociacioacuten
27
6 FINAL REMARKS
The Agreement will allow both countries Establish economic alliances and reciprocal investments
Simplify sanitary and technical regulations
Standardize customs procedures
Faster addressing trade problems through contact points and
Technical Committees
28
MAIN BENEFITS
THANK YOU
Diego Torres Diez
Head Asia and Oceania Department
General Directorate for International Economic Affairs
April 2016
PACIFIC ALLIANCE FIGURES
6th world economy (28 world GDP)
35 population of LAC (216 millions)
527 Latin American exports
37 GDP and 31 FDI of LAC
Source IMF (World Economic Outlook octubre 2014) y World Factbook-CIA World Investment Report 2014 -UNCTAD Trademap () 2013
ACHIEVEMENTS
Framework Agreement
First Additional Protocol to the Framework Agreement
Aditional dispositions on e-commerce amp telecommunications
Intellectual property projects
Consolidation of MILA biggest Latinamerica stock market
Joint Events on Export Promotion
Visa acilities for business people staying over 180 days
Visa tourist exemption
Student Grants
Joint Cooperation Fund of the Pacific Alliance
Inter-institutional Agreement on pharmaceuticals products
Cooperation Agreement in Tourism
Joint Diplomatic and Trade Offices
Migratory Exchange of Information XX032014
Oficina Comercial
ADDITIONAL PROTOCOL
Tariffs elimination bull 100 Tariffs elimination bull 92 immediately once entry into force bull 8 short and medium term (between 3 and 17 years)
Rules of origin Flexibility single rule and accumulation through PA member in order to the commercial integration
Trade facilitation Electronic Certification of Origin Interoperability of the single window Custom Cooperation Authorized Economic Operator
Sanitary and Phytosanitary Measures Increase transparency in the application of sanitary and phytosanitary measures and strengthen the use of science-based
Technical Barriers to Trade Increase transparency and the regulatory cooperation among other matters
Comprehensive Chapters in Services and Investment
Cross-Border Trade in Services and Investment Protect cross border trade in services the investors and their investments in the countries of the Pacific Alliance Telecomunications Ensure of telecommunications services in the region of the Pacific Alliance under free competition particularly in relation to the dominant suppliers E-Commerce Electronic transactions of goods and services shall be regulated including digital products to ensure their safety and efficiency Maritime Services Grant a non-discriminatory treatment to ships from PA countries in its ports the recognition of the documentation of vessels and crew among others Financial Services Grant legal certainty for investors and service providers from the four countries in the financial sector consolidating the laws of each country
ADDITIONAL PROTOCOL
Government Procurement Facilitate and encourage the participation of MSMEs as well expand the coverage of existing agreements including rules and actions
Dispute Settlement Mechanism address to the prevention or settlement of disputes between the Parties concerning the interpretation implementation or application of the Agreement
ADDITIONAL PROTOCOL
NEXT STEPShellip
1 Free Movement of Capitals 11 Financial integration - Pensions portability along with the persons - Foreign Investment promotion policy - Financial inclusion 12 Infrastructure investment - Regional Investment Fund 13 Public Finance - Mechanism for Exchange of Fiscal Information - Natural Disasters Joint Risk Management
2 Free Movement of Goods amp Services - Homologation administrative norms - Foreign Trade Single Windows interoperability - Consumer Rights Booklet - MoU on Exchange Information about controversy solutions for consumer protection - Mining projects
3 Free Movement of People Pacific Alliance Visa
4 Cooperation aerospace cooperation operations start of the Joint Cooperation Fund of the Pacific Alliance
Contexto negociacioacuten TPP DIRECON
El TPP es el proceso de negociacioacuten econoacutemica y comercial maacutes importante que se desarrolla en el escenario internacional que surge con el objetivo de generar un proceso de integracioacuten en la regioacuten Asia Paciacutefico Negociacioacuten de 12 paiacuteses entre las cuales se encuentran dos de las tres economiacuteas maacutes grandes del mundo Espacio donde se estaacute definiendo la nueva arquitectura del comercio internacional estableciendo las reglas o estaacutendares que lo regiraacuten durante los proacuteximos antildeos Ha sido definido por los miembros de APEC como un elemento central para la construccioacuten de la Zona de Libre de Comercio en el Asia Paciacutefico (regioacuten con los niveles maacutes altos de dinamismo econoacutemico) Respecto de nuestros acuerdos vigentes con paiacuteses TPP seraacute posible completar su cobertura incluyendo temas como servicios compras puacuteblicas e inversiones Beneficios Especiacuteficos Acceso a mercados Compras Puacuteblicas Normas de origen y Acumulacioacuten Facilitacioacuten de Comercio Servicios Inversiones Entrada Temporal de Personas de Negocios Comercio Electroacutenico y Telecomunicaciones Asuntos Ambientales y Laborales Coherencia Regulatoria Otros beneficios
TRANSPACIFIC PARTENERSHIP AGREEMENT (TPP) MEMBER COUNTRIES
TPP is one of the most important trade integration initiatives in the current international scenario Two of the three largest economies in the world are members The agreement will help establish rules for international trade in the Asia Pacific region It has been described by APEC members as a central element for the construction of the Free Trade Area in the Asia Pacific
TRANS PACIFIC PARTNERSHIP (TPP)
38
TPP ndash IMPORTANCE FOR CHILE
Chile will participate in the formulation of rules and standards which will govern international trade during the next century TPP will be a key element to consolidate trade integration between Chile and Asia TPP will position Chile as a business platform to access markets of Latin-America It will enable Chile to enhance coverage of current existing bilateral FTAs
39
18
MARKET ACCES OFFERs UNDER THE FTA
Thailand granted Chile the
elimination of 901 of tariff lines in immediate category
THAI OFFER
CATEGORY PRODUCTS
NT0 (inmmediate) 7383
NT0 (O tariff for quotas WTO)
87
NT1 ( Year 3) 142
NT2 (Year 5) 575
SL (Year 8) 102
Total 8300
CHILEAN OFFER
CATEGORY PRODUCTS
Year 0 6989
Year 3 321
Year 5 298
SL (Year 8) 107
Total 7715
On the other hand Chile granted immediate tariff elimination to 906 of tariff lines
TARIFF
NMF FTA
5 Year 0
10 Year 0
30 Year 0
0 Year 0
30 Year 0 - Year 3
30 Year 0
30 Year 0
5 Year 0
40 0 in 2016
10 Year 5
10 Year 0
5 - 10 Year 0
30 Year 0 - Year 5
30 Year 0 - Year 5
27 Year 0 - Year 5
CHILEAN EXPORTS TO THAILAND POTENTIAL NEW EXPORTS (thousand US$)
19 Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Description
441239 Plywood consisting solely of sheets of wood
250100 Salt pure sodium chlorideampsea water
080830 Pears
710691 Silver in unwrought forms
200799 Jamsfruit jelliesfruitnut pureacuteeamppaste
200290 Tomatoes prepared or preserved
190490 Cerealsin grain form
310230 Ammonium nitrate pack weighg gt 10 kg
080520 Mandarins
200979 Apple juice
080212 Almondsfresh or driedshelled or peeled
190110 Prep of cerealsflourstarch
200870 Peaches preserved
080510 Oranges fresh or dried
150910 Olive oil virgin
Chiles exports to
World
Thailands imports
from world
348825 28662
189179 7021
141149 40326
139243 304920
129069 8503
127035 19816
106145 12496
95225 12932
93902 106357
90919 5120
87070 33113
73026 92985
72334 20709
62333 5988
57921 8231
THAI EXPORTS TO CHILE POTENTIAL NEW EXPORTS (thousand US$)
20
Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Description
400122 Technically specified natural rubber
870333 Automobiles with diesel engine 2500 cc
271012 Light petroleum oils and preparations
730890 Structuresparts of structures
030617 Other frozen shrimps and prawns
Hair shampoos
390760 Polyethylene terephthalate
330590 Hair preparations nes
390410 Polyvinyl chloride
390720 Polyethers nes
761510 Table kitchen or other household articles
850710 Lead-acid electric accumulators
841199 Parts of gas turbines nes
330610 Dentifrices
Thailand`s exports to
world
Chiles imports
from world
2670862 27215
1555558 85799
1376742 402119
851605 168678
624041 32211
422492 67538
383853 93937
346316 80249
276977 71610
250879 45834
226498 28908
207511 77064
193332 38427
183200 36079
TARIFF
NMF FTA
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
THAILAND EXPORTS KEY PRODUCTS (thousand US$)
21
Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Product label Exported
Thailands 2015
847170 Computer data storage units 10943347
870421 Diesel powered trucks 6798984
271019 Petroleum oils and preparations 5427876
100630 Rice semi-milled or wholly milled 4078187
847330 Parts and accessories of automatic data
processg machines 3253436
854231 Electronic integrated circuits as
processors and controllers 2865029
400122 Technically specified natural rubber
(TSNR) 2670862
870899 Motor vehicle parts nes 2666050
870323 Automobiles w reciprocatg piston engine
displacg gt 1500 cc to 3000 cc 2611009
Thailands exports to
Chile
Chiles imports
from world
2 123864
287582 928981
5 3598452
1656 70351
4 53079
- 14139
- 27215
2045 554180
602 1660996
NMF FTA
6 Year 0
6 Year 0
6 Year 0
6 Year 5
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
Chapter on Rules of Origin meets the standards that Chile has negotiated in recent agreements Committees regarding Technical Barriers to Trade (TBT ) and Sanitary and Phytosanitary Measures (SPS) are included Regarding the chapter on services will grant new opportunities in trade in services The inclusion of a chapter on financial services enable financial institutions in Chile and Thailand obtain a non- discriminatory treatment and to establish andor acquire financial institutions in both financial markets The Agreement also includes a Cooperation chapter that will allow closer cooperation relations between the public private and academic spheres in areas of mutual interest Commitment of start negotiation of an investment chapter
22
CHILE ndash THAILAND FTA
23
5 PRODUCTION LINKAGES
A new step forward in Chilean trade policy designed to leverage business opportunities generated by Chilersquos network of trade agreements Consists of business alliances with trading partners for in-country goods production using imported supplies Production linkages involve processing partner-country materials or parts in Chile Finished value-added goods can then be re-exported to countries making use of Chile tariff reductions Rules of origin play a fundamental role in securing tariff reductions
24
WHAT ARE PRODUCTION LINKAGES
FIRST STEP
The material supply or consumable good is imported to the country with preferential treatment
SUMMARY
Production or
assembly in Chile
FTA Final good
Supplies
Preferencia
Arancelaria
Rules of
Origin
FTAs
Tariff
SECOND STEP The production process is carried out in Chile or Thailand in order to comply with the rules of origin of different trade agreements
THRID STEP
The final good is exported (with Chilean of Thai origin) to other markets
EXAMPLE
Chile ndash Thailand Free Trade
Agreement Potential Market of 566 million
consumers
0 Tariff 0 Tariff
PYMEs
Cooperacioacuten
Servicios
Coherencia Regulatoria
Laboral
Defensa Comercial
Medidas Sanitarias y Fitosanitarias Competitividad
Desarrollo
Temas aduaneros Solucioacuten de Controversias
Reglas de Origen
Inversiones
Obstaacuteculos Teacutecnicos al Comercio
Acceso a Mercados Servicios Financieros
Comercio Electroacutenico
Asuntos Legales Administracioacuten Transparencia Anticorrupcioacuten
Excepciones Disposiciones Finales
Medio Ambiente
Propiedad Intelectual
Empresas del Estado
Entrada Temporal
Compras Puacuteblicas
Telecomunicaciones
CONTEXTO Temas Bajo Negociacioacuten
27
6 FINAL REMARKS
The Agreement will allow both countries Establish economic alliances and reciprocal investments
Simplify sanitary and technical regulations
Standardize customs procedures
Faster addressing trade problems through contact points and
Technical Committees
28
MAIN BENEFITS
THANK YOU
Diego Torres Diez
Head Asia and Oceania Department
General Directorate for International Economic Affairs
April 2016
PACIFIC ALLIANCE FIGURES
6th world economy (28 world GDP)
35 population of LAC (216 millions)
527 Latin American exports
37 GDP and 31 FDI of LAC
Source IMF (World Economic Outlook octubre 2014) y World Factbook-CIA World Investment Report 2014 -UNCTAD Trademap () 2013
ACHIEVEMENTS
Framework Agreement
First Additional Protocol to the Framework Agreement
Aditional dispositions on e-commerce amp telecommunications
Intellectual property projects
Consolidation of MILA biggest Latinamerica stock market
Joint Events on Export Promotion
Visa acilities for business people staying over 180 days
Visa tourist exemption
Student Grants
Joint Cooperation Fund of the Pacific Alliance
Inter-institutional Agreement on pharmaceuticals products
Cooperation Agreement in Tourism
Joint Diplomatic and Trade Offices
Migratory Exchange of Information XX032014
Oficina Comercial
ADDITIONAL PROTOCOL
Tariffs elimination bull 100 Tariffs elimination bull 92 immediately once entry into force bull 8 short and medium term (between 3 and 17 years)
Rules of origin Flexibility single rule and accumulation through PA member in order to the commercial integration
Trade facilitation Electronic Certification of Origin Interoperability of the single window Custom Cooperation Authorized Economic Operator
Sanitary and Phytosanitary Measures Increase transparency in the application of sanitary and phytosanitary measures and strengthen the use of science-based
Technical Barriers to Trade Increase transparency and the regulatory cooperation among other matters
Comprehensive Chapters in Services and Investment
Cross-Border Trade in Services and Investment Protect cross border trade in services the investors and their investments in the countries of the Pacific Alliance Telecomunications Ensure of telecommunications services in the region of the Pacific Alliance under free competition particularly in relation to the dominant suppliers E-Commerce Electronic transactions of goods and services shall be regulated including digital products to ensure their safety and efficiency Maritime Services Grant a non-discriminatory treatment to ships from PA countries in its ports the recognition of the documentation of vessels and crew among others Financial Services Grant legal certainty for investors and service providers from the four countries in the financial sector consolidating the laws of each country
ADDITIONAL PROTOCOL
Government Procurement Facilitate and encourage the participation of MSMEs as well expand the coverage of existing agreements including rules and actions
Dispute Settlement Mechanism address to the prevention or settlement of disputes between the Parties concerning the interpretation implementation or application of the Agreement
ADDITIONAL PROTOCOL
NEXT STEPShellip
1 Free Movement of Capitals 11 Financial integration - Pensions portability along with the persons - Foreign Investment promotion policy - Financial inclusion 12 Infrastructure investment - Regional Investment Fund 13 Public Finance - Mechanism for Exchange of Fiscal Information - Natural Disasters Joint Risk Management
2 Free Movement of Goods amp Services - Homologation administrative norms - Foreign Trade Single Windows interoperability - Consumer Rights Booklet - MoU on Exchange Information about controversy solutions for consumer protection - Mining projects
3 Free Movement of People Pacific Alliance Visa
4 Cooperation aerospace cooperation operations start of the Joint Cooperation Fund of the Pacific Alliance
Contexto negociacioacuten TPP DIRECON
El TPP es el proceso de negociacioacuten econoacutemica y comercial maacutes importante que se desarrolla en el escenario internacional que surge con el objetivo de generar un proceso de integracioacuten en la regioacuten Asia Paciacutefico Negociacioacuten de 12 paiacuteses entre las cuales se encuentran dos de las tres economiacuteas maacutes grandes del mundo Espacio donde se estaacute definiendo la nueva arquitectura del comercio internacional estableciendo las reglas o estaacutendares que lo regiraacuten durante los proacuteximos antildeos Ha sido definido por los miembros de APEC como un elemento central para la construccioacuten de la Zona de Libre de Comercio en el Asia Paciacutefico (regioacuten con los niveles maacutes altos de dinamismo econoacutemico) Respecto de nuestros acuerdos vigentes con paiacuteses TPP seraacute posible completar su cobertura incluyendo temas como servicios compras puacuteblicas e inversiones Beneficios Especiacuteficos Acceso a mercados Compras Puacuteblicas Normas de origen y Acumulacioacuten Facilitacioacuten de Comercio Servicios Inversiones Entrada Temporal de Personas de Negocios Comercio Electroacutenico y Telecomunicaciones Asuntos Ambientales y Laborales Coherencia Regulatoria Otros beneficios
TRANSPACIFIC PARTENERSHIP AGREEMENT (TPP) MEMBER COUNTRIES
TPP is one of the most important trade integration initiatives in the current international scenario Two of the three largest economies in the world are members The agreement will help establish rules for international trade in the Asia Pacific region It has been described by APEC members as a central element for the construction of the Free Trade Area in the Asia Pacific
TRANS PACIFIC PARTNERSHIP (TPP)
38
TPP ndash IMPORTANCE FOR CHILE
Chile will participate in the formulation of rules and standards which will govern international trade during the next century TPP will be a key element to consolidate trade integration between Chile and Asia TPP will position Chile as a business platform to access markets of Latin-America It will enable Chile to enhance coverage of current existing bilateral FTAs
39
TARIFF
NMF FTA
5 Year 0
10 Year 0
30 Year 0
0 Year 0
30 Year 0 - Year 3
30 Year 0
30 Year 0
5 Year 0
40 0 in 2016
10 Year 5
10 Year 0
5 - 10 Year 0
30 Year 0 - Year 5
30 Year 0 - Year 5
27 Year 0 - Year 5
CHILEAN EXPORTS TO THAILAND POTENTIAL NEW EXPORTS (thousand US$)
19 Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Description
441239 Plywood consisting solely of sheets of wood
250100 Salt pure sodium chlorideampsea water
080830 Pears
710691 Silver in unwrought forms
200799 Jamsfruit jelliesfruitnut pureacuteeamppaste
200290 Tomatoes prepared or preserved
190490 Cerealsin grain form
310230 Ammonium nitrate pack weighg gt 10 kg
080520 Mandarins
200979 Apple juice
080212 Almondsfresh or driedshelled or peeled
190110 Prep of cerealsflourstarch
200870 Peaches preserved
080510 Oranges fresh or dried
150910 Olive oil virgin
Chiles exports to
World
Thailands imports
from world
348825 28662
189179 7021
141149 40326
139243 304920
129069 8503
127035 19816
106145 12496
95225 12932
93902 106357
90919 5120
87070 33113
73026 92985
72334 20709
62333 5988
57921 8231
THAI EXPORTS TO CHILE POTENTIAL NEW EXPORTS (thousand US$)
20
Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Description
400122 Technically specified natural rubber
870333 Automobiles with diesel engine 2500 cc
271012 Light petroleum oils and preparations
730890 Structuresparts of structures
030617 Other frozen shrimps and prawns
Hair shampoos
390760 Polyethylene terephthalate
330590 Hair preparations nes
390410 Polyvinyl chloride
390720 Polyethers nes
761510 Table kitchen or other household articles
850710 Lead-acid electric accumulators
841199 Parts of gas turbines nes
330610 Dentifrices
Thailand`s exports to
world
Chiles imports
from world
2670862 27215
1555558 85799
1376742 402119
851605 168678
624041 32211
422492 67538
383853 93937
346316 80249
276977 71610
250879 45834
226498 28908
207511 77064
193332 38427
183200 36079
TARIFF
NMF FTA
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
THAILAND EXPORTS KEY PRODUCTS (thousand US$)
21
Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Product label Exported
Thailands 2015
847170 Computer data storage units 10943347
870421 Diesel powered trucks 6798984
271019 Petroleum oils and preparations 5427876
100630 Rice semi-milled or wholly milled 4078187
847330 Parts and accessories of automatic data
processg machines 3253436
854231 Electronic integrated circuits as
processors and controllers 2865029
400122 Technically specified natural rubber
(TSNR) 2670862
870899 Motor vehicle parts nes 2666050
870323 Automobiles w reciprocatg piston engine
displacg gt 1500 cc to 3000 cc 2611009
Thailands exports to
Chile
Chiles imports
from world
2 123864
287582 928981
5 3598452
1656 70351
4 53079
- 14139
- 27215
2045 554180
602 1660996
NMF FTA
6 Year 0
6 Year 0
6 Year 0
6 Year 5
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
Chapter on Rules of Origin meets the standards that Chile has negotiated in recent agreements Committees regarding Technical Barriers to Trade (TBT ) and Sanitary and Phytosanitary Measures (SPS) are included Regarding the chapter on services will grant new opportunities in trade in services The inclusion of a chapter on financial services enable financial institutions in Chile and Thailand obtain a non- discriminatory treatment and to establish andor acquire financial institutions in both financial markets The Agreement also includes a Cooperation chapter that will allow closer cooperation relations between the public private and academic spheres in areas of mutual interest Commitment of start negotiation of an investment chapter
22
CHILE ndash THAILAND FTA
23
5 PRODUCTION LINKAGES
A new step forward in Chilean trade policy designed to leverage business opportunities generated by Chilersquos network of trade agreements Consists of business alliances with trading partners for in-country goods production using imported supplies Production linkages involve processing partner-country materials or parts in Chile Finished value-added goods can then be re-exported to countries making use of Chile tariff reductions Rules of origin play a fundamental role in securing tariff reductions
24
WHAT ARE PRODUCTION LINKAGES
FIRST STEP
The material supply or consumable good is imported to the country with preferential treatment
SUMMARY
Production or
assembly in Chile
FTA Final good
Supplies
Preferencia
Arancelaria
Rules of
Origin
FTAs
Tariff
SECOND STEP The production process is carried out in Chile or Thailand in order to comply with the rules of origin of different trade agreements
THRID STEP
The final good is exported (with Chilean of Thai origin) to other markets
EXAMPLE
Chile ndash Thailand Free Trade
Agreement Potential Market of 566 million
consumers
0 Tariff 0 Tariff
PYMEs
Cooperacioacuten
Servicios
Coherencia Regulatoria
Laboral
Defensa Comercial
Medidas Sanitarias y Fitosanitarias Competitividad
Desarrollo
Temas aduaneros Solucioacuten de Controversias
Reglas de Origen
Inversiones
Obstaacuteculos Teacutecnicos al Comercio
Acceso a Mercados Servicios Financieros
Comercio Electroacutenico
Asuntos Legales Administracioacuten Transparencia Anticorrupcioacuten
Excepciones Disposiciones Finales
Medio Ambiente
Propiedad Intelectual
Empresas del Estado
Entrada Temporal
Compras Puacuteblicas
Telecomunicaciones
CONTEXTO Temas Bajo Negociacioacuten
27
6 FINAL REMARKS
The Agreement will allow both countries Establish economic alliances and reciprocal investments
Simplify sanitary and technical regulations
Standardize customs procedures
Faster addressing trade problems through contact points and
Technical Committees
28
MAIN BENEFITS
THANK YOU
Diego Torres Diez
Head Asia and Oceania Department
General Directorate for International Economic Affairs
April 2016
PACIFIC ALLIANCE FIGURES
6th world economy (28 world GDP)
35 population of LAC (216 millions)
527 Latin American exports
37 GDP and 31 FDI of LAC
Source IMF (World Economic Outlook octubre 2014) y World Factbook-CIA World Investment Report 2014 -UNCTAD Trademap () 2013
ACHIEVEMENTS
Framework Agreement
First Additional Protocol to the Framework Agreement
Aditional dispositions on e-commerce amp telecommunications
Intellectual property projects
Consolidation of MILA biggest Latinamerica stock market
Joint Events on Export Promotion
Visa acilities for business people staying over 180 days
Visa tourist exemption
Student Grants
Joint Cooperation Fund of the Pacific Alliance
Inter-institutional Agreement on pharmaceuticals products
Cooperation Agreement in Tourism
Joint Diplomatic and Trade Offices
Migratory Exchange of Information XX032014
Oficina Comercial
ADDITIONAL PROTOCOL
Tariffs elimination bull 100 Tariffs elimination bull 92 immediately once entry into force bull 8 short and medium term (between 3 and 17 years)
Rules of origin Flexibility single rule and accumulation through PA member in order to the commercial integration
Trade facilitation Electronic Certification of Origin Interoperability of the single window Custom Cooperation Authorized Economic Operator
Sanitary and Phytosanitary Measures Increase transparency in the application of sanitary and phytosanitary measures and strengthen the use of science-based
Technical Barriers to Trade Increase transparency and the regulatory cooperation among other matters
Comprehensive Chapters in Services and Investment
Cross-Border Trade in Services and Investment Protect cross border trade in services the investors and their investments in the countries of the Pacific Alliance Telecomunications Ensure of telecommunications services in the region of the Pacific Alliance under free competition particularly in relation to the dominant suppliers E-Commerce Electronic transactions of goods and services shall be regulated including digital products to ensure their safety and efficiency Maritime Services Grant a non-discriminatory treatment to ships from PA countries in its ports the recognition of the documentation of vessels and crew among others Financial Services Grant legal certainty for investors and service providers from the four countries in the financial sector consolidating the laws of each country
ADDITIONAL PROTOCOL
Government Procurement Facilitate and encourage the participation of MSMEs as well expand the coverage of existing agreements including rules and actions
Dispute Settlement Mechanism address to the prevention or settlement of disputes between the Parties concerning the interpretation implementation or application of the Agreement
ADDITIONAL PROTOCOL
NEXT STEPShellip
1 Free Movement of Capitals 11 Financial integration - Pensions portability along with the persons - Foreign Investment promotion policy - Financial inclusion 12 Infrastructure investment - Regional Investment Fund 13 Public Finance - Mechanism for Exchange of Fiscal Information - Natural Disasters Joint Risk Management
2 Free Movement of Goods amp Services - Homologation administrative norms - Foreign Trade Single Windows interoperability - Consumer Rights Booklet - MoU on Exchange Information about controversy solutions for consumer protection - Mining projects
3 Free Movement of People Pacific Alliance Visa
4 Cooperation aerospace cooperation operations start of the Joint Cooperation Fund of the Pacific Alliance
Contexto negociacioacuten TPP DIRECON
El TPP es el proceso de negociacioacuten econoacutemica y comercial maacutes importante que se desarrolla en el escenario internacional que surge con el objetivo de generar un proceso de integracioacuten en la regioacuten Asia Paciacutefico Negociacioacuten de 12 paiacuteses entre las cuales se encuentran dos de las tres economiacuteas maacutes grandes del mundo Espacio donde se estaacute definiendo la nueva arquitectura del comercio internacional estableciendo las reglas o estaacutendares que lo regiraacuten durante los proacuteximos antildeos Ha sido definido por los miembros de APEC como un elemento central para la construccioacuten de la Zona de Libre de Comercio en el Asia Paciacutefico (regioacuten con los niveles maacutes altos de dinamismo econoacutemico) Respecto de nuestros acuerdos vigentes con paiacuteses TPP seraacute posible completar su cobertura incluyendo temas como servicios compras puacuteblicas e inversiones Beneficios Especiacuteficos Acceso a mercados Compras Puacuteblicas Normas de origen y Acumulacioacuten Facilitacioacuten de Comercio Servicios Inversiones Entrada Temporal de Personas de Negocios Comercio Electroacutenico y Telecomunicaciones Asuntos Ambientales y Laborales Coherencia Regulatoria Otros beneficios
TRANSPACIFIC PARTENERSHIP AGREEMENT (TPP) MEMBER COUNTRIES
TPP is one of the most important trade integration initiatives in the current international scenario Two of the three largest economies in the world are members The agreement will help establish rules for international trade in the Asia Pacific region It has been described by APEC members as a central element for the construction of the Free Trade Area in the Asia Pacific
TRANS PACIFIC PARTNERSHIP (TPP)
38
TPP ndash IMPORTANCE FOR CHILE
Chile will participate in the formulation of rules and standards which will govern international trade during the next century TPP will be a key element to consolidate trade integration between Chile and Asia TPP will position Chile as a business platform to access markets of Latin-America It will enable Chile to enhance coverage of current existing bilateral FTAs
39
THAI EXPORTS TO CHILE POTENTIAL NEW EXPORTS (thousand US$)
20
Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Description
400122 Technically specified natural rubber
870333 Automobiles with diesel engine 2500 cc
271012 Light petroleum oils and preparations
730890 Structuresparts of structures
030617 Other frozen shrimps and prawns
Hair shampoos
390760 Polyethylene terephthalate
330590 Hair preparations nes
390410 Polyvinyl chloride
390720 Polyethers nes
761510 Table kitchen or other household articles
850710 Lead-acid electric accumulators
841199 Parts of gas turbines nes
330610 Dentifrices
Thailand`s exports to
world
Chiles imports
from world
2670862 27215
1555558 85799
1376742 402119
851605 168678
624041 32211
422492 67538
383853 93937
346316 80249
276977 71610
250879 45834
226498 28908
207511 77064
193332 38427
183200 36079
TARIFF
NMF FTA
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
THAILAND EXPORTS KEY PRODUCTS (thousand US$)
21
Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Product label Exported
Thailands 2015
847170 Computer data storage units 10943347
870421 Diesel powered trucks 6798984
271019 Petroleum oils and preparations 5427876
100630 Rice semi-milled or wholly milled 4078187
847330 Parts and accessories of automatic data
processg machines 3253436
854231 Electronic integrated circuits as
processors and controllers 2865029
400122 Technically specified natural rubber
(TSNR) 2670862
870899 Motor vehicle parts nes 2666050
870323 Automobiles w reciprocatg piston engine
displacg gt 1500 cc to 3000 cc 2611009
Thailands exports to
Chile
Chiles imports
from world
2 123864
287582 928981
5 3598452
1656 70351
4 53079
- 14139
- 27215
2045 554180
602 1660996
NMF FTA
6 Year 0
6 Year 0
6 Year 0
6 Year 5
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
Chapter on Rules of Origin meets the standards that Chile has negotiated in recent agreements Committees regarding Technical Barriers to Trade (TBT ) and Sanitary and Phytosanitary Measures (SPS) are included Regarding the chapter on services will grant new opportunities in trade in services The inclusion of a chapter on financial services enable financial institutions in Chile and Thailand obtain a non- discriminatory treatment and to establish andor acquire financial institutions in both financial markets The Agreement also includes a Cooperation chapter that will allow closer cooperation relations between the public private and academic spheres in areas of mutual interest Commitment of start negotiation of an investment chapter
22
CHILE ndash THAILAND FTA
23
5 PRODUCTION LINKAGES
A new step forward in Chilean trade policy designed to leverage business opportunities generated by Chilersquos network of trade agreements Consists of business alliances with trading partners for in-country goods production using imported supplies Production linkages involve processing partner-country materials or parts in Chile Finished value-added goods can then be re-exported to countries making use of Chile tariff reductions Rules of origin play a fundamental role in securing tariff reductions
24
WHAT ARE PRODUCTION LINKAGES
FIRST STEP
The material supply or consumable good is imported to the country with preferential treatment
SUMMARY
Production or
assembly in Chile
FTA Final good
Supplies
Preferencia
Arancelaria
Rules of
Origin
FTAs
Tariff
SECOND STEP The production process is carried out in Chile or Thailand in order to comply with the rules of origin of different trade agreements
THRID STEP
The final good is exported (with Chilean of Thai origin) to other markets
EXAMPLE
Chile ndash Thailand Free Trade
Agreement Potential Market of 566 million
consumers
0 Tariff 0 Tariff
PYMEs
Cooperacioacuten
Servicios
Coherencia Regulatoria
Laboral
Defensa Comercial
Medidas Sanitarias y Fitosanitarias Competitividad
Desarrollo
Temas aduaneros Solucioacuten de Controversias
Reglas de Origen
Inversiones
Obstaacuteculos Teacutecnicos al Comercio
Acceso a Mercados Servicios Financieros
Comercio Electroacutenico
Asuntos Legales Administracioacuten Transparencia Anticorrupcioacuten
Excepciones Disposiciones Finales
Medio Ambiente
Propiedad Intelectual
Empresas del Estado
Entrada Temporal
Compras Puacuteblicas
Telecomunicaciones
CONTEXTO Temas Bajo Negociacioacuten
27
6 FINAL REMARKS
The Agreement will allow both countries Establish economic alliances and reciprocal investments
Simplify sanitary and technical regulations
Standardize customs procedures
Faster addressing trade problems through contact points and
Technical Committees
28
MAIN BENEFITS
THANK YOU
Diego Torres Diez
Head Asia and Oceania Department
General Directorate for International Economic Affairs
April 2016
PACIFIC ALLIANCE FIGURES
6th world economy (28 world GDP)
35 population of LAC (216 millions)
527 Latin American exports
37 GDP and 31 FDI of LAC
Source IMF (World Economic Outlook octubre 2014) y World Factbook-CIA World Investment Report 2014 -UNCTAD Trademap () 2013
ACHIEVEMENTS
Framework Agreement
First Additional Protocol to the Framework Agreement
Aditional dispositions on e-commerce amp telecommunications
Intellectual property projects
Consolidation of MILA biggest Latinamerica stock market
Joint Events on Export Promotion
Visa acilities for business people staying over 180 days
Visa tourist exemption
Student Grants
Joint Cooperation Fund of the Pacific Alliance
Inter-institutional Agreement on pharmaceuticals products
Cooperation Agreement in Tourism
Joint Diplomatic and Trade Offices
Migratory Exchange of Information XX032014
Oficina Comercial
ADDITIONAL PROTOCOL
Tariffs elimination bull 100 Tariffs elimination bull 92 immediately once entry into force bull 8 short and medium term (between 3 and 17 years)
Rules of origin Flexibility single rule and accumulation through PA member in order to the commercial integration
Trade facilitation Electronic Certification of Origin Interoperability of the single window Custom Cooperation Authorized Economic Operator
Sanitary and Phytosanitary Measures Increase transparency in the application of sanitary and phytosanitary measures and strengthen the use of science-based
Technical Barriers to Trade Increase transparency and the regulatory cooperation among other matters
Comprehensive Chapters in Services and Investment
Cross-Border Trade in Services and Investment Protect cross border trade in services the investors and their investments in the countries of the Pacific Alliance Telecomunications Ensure of telecommunications services in the region of the Pacific Alliance under free competition particularly in relation to the dominant suppliers E-Commerce Electronic transactions of goods and services shall be regulated including digital products to ensure their safety and efficiency Maritime Services Grant a non-discriminatory treatment to ships from PA countries in its ports the recognition of the documentation of vessels and crew among others Financial Services Grant legal certainty for investors and service providers from the four countries in the financial sector consolidating the laws of each country
ADDITIONAL PROTOCOL
Government Procurement Facilitate and encourage the participation of MSMEs as well expand the coverage of existing agreements including rules and actions
Dispute Settlement Mechanism address to the prevention or settlement of disputes between the Parties concerning the interpretation implementation or application of the Agreement
ADDITIONAL PROTOCOL
NEXT STEPShellip
1 Free Movement of Capitals 11 Financial integration - Pensions portability along with the persons - Foreign Investment promotion policy - Financial inclusion 12 Infrastructure investment - Regional Investment Fund 13 Public Finance - Mechanism for Exchange of Fiscal Information - Natural Disasters Joint Risk Management
2 Free Movement of Goods amp Services - Homologation administrative norms - Foreign Trade Single Windows interoperability - Consumer Rights Booklet - MoU on Exchange Information about controversy solutions for consumer protection - Mining projects
3 Free Movement of People Pacific Alliance Visa
4 Cooperation aerospace cooperation operations start of the Joint Cooperation Fund of the Pacific Alliance
Contexto negociacioacuten TPP DIRECON
El TPP es el proceso de negociacioacuten econoacutemica y comercial maacutes importante que se desarrolla en el escenario internacional que surge con el objetivo de generar un proceso de integracioacuten en la regioacuten Asia Paciacutefico Negociacioacuten de 12 paiacuteses entre las cuales se encuentran dos de las tres economiacuteas maacutes grandes del mundo Espacio donde se estaacute definiendo la nueva arquitectura del comercio internacional estableciendo las reglas o estaacutendares que lo regiraacuten durante los proacuteximos antildeos Ha sido definido por los miembros de APEC como un elemento central para la construccioacuten de la Zona de Libre de Comercio en el Asia Paciacutefico (regioacuten con los niveles maacutes altos de dinamismo econoacutemico) Respecto de nuestros acuerdos vigentes con paiacuteses TPP seraacute posible completar su cobertura incluyendo temas como servicios compras puacuteblicas e inversiones Beneficios Especiacuteficos Acceso a mercados Compras Puacuteblicas Normas de origen y Acumulacioacuten Facilitacioacuten de Comercio Servicios Inversiones Entrada Temporal de Personas de Negocios Comercio Electroacutenico y Telecomunicaciones Asuntos Ambientales y Laborales Coherencia Regulatoria Otros beneficios
TRANSPACIFIC PARTENERSHIP AGREEMENT (TPP) MEMBER COUNTRIES
TPP is one of the most important trade integration initiatives in the current international scenario Two of the three largest economies in the world are members The agreement will help establish rules for international trade in the Asia Pacific region It has been described by APEC members as a central element for the construction of the Free Trade Area in the Asia Pacific
TRANS PACIFIC PARTNERSHIP (TPP)
38
TPP ndash IMPORTANCE FOR CHILE
Chile will participate in the formulation of rules and standards which will govern international trade during the next century TPP will be a key element to consolidate trade integration between Chile and Asia TPP will position Chile as a business platform to access markets of Latin-America It will enable Chile to enhance coverage of current existing bilateral FTAs
39
THAILAND EXPORTS KEY PRODUCTS (thousand US$)
21
Source Studies Department DIRECON-PROCHILE over data of TRADEMAP
Code Product label Exported
Thailands 2015
847170 Computer data storage units 10943347
870421 Diesel powered trucks 6798984
271019 Petroleum oils and preparations 5427876
100630 Rice semi-milled or wholly milled 4078187
847330 Parts and accessories of automatic data
processg machines 3253436
854231 Electronic integrated circuits as
processors and controllers 2865029
400122 Technically specified natural rubber
(TSNR) 2670862
870899 Motor vehicle parts nes 2666050
870323 Automobiles w reciprocatg piston engine
displacg gt 1500 cc to 3000 cc 2611009
Thailands exports to
Chile
Chiles imports
from world
2 123864
287582 928981
5 3598452
1656 70351
4 53079
- 14139
- 27215
2045 554180
602 1660996
NMF FTA
6 Year 0
6 Year 0
6 Year 0
6 Year 5
6 Year 0
6 Year 0
6 Year 0
6 Year 0
6 Year 0
Chapter on Rules of Origin meets the standards that Chile has negotiated in recent agreements Committees regarding Technical Barriers to Trade (TBT ) and Sanitary and Phytosanitary Measures (SPS) are included Regarding the chapter on services will grant new opportunities in trade in services The inclusion of a chapter on financial services enable financial institutions in Chile and Thailand obtain a non- discriminatory treatment and to establish andor acquire financial institutions in both financial markets The Agreement also includes a Cooperation chapter that will allow closer cooperation relations between the public private and academic spheres in areas of mutual interest Commitment of start negotiation of an investment chapter
22
CHILE ndash THAILAND FTA
23
5 PRODUCTION LINKAGES
A new step forward in Chilean trade policy designed to leverage business opportunities generated by Chilersquos network of trade agreements Consists of business alliances with trading partners for in-country goods production using imported supplies Production linkages involve processing partner-country materials or parts in Chile Finished value-added goods can then be re-exported to countries making use of Chile tariff reductions Rules of origin play a fundamental role in securing tariff reductions
24
WHAT ARE PRODUCTION LINKAGES
FIRST STEP
The material supply or consumable good is imported to the country with preferential treatment
SUMMARY
Production or
assembly in Chile
FTA Final good
Supplies
Preferencia
Arancelaria
Rules of
Origin
FTAs
Tariff
SECOND STEP The production process is carried out in Chile or Thailand in order to comply with the rules of origin of different trade agreements
THRID STEP
The final good is exported (with Chilean of Thai origin) to other markets
EXAMPLE
Chile ndash Thailand Free Trade
Agreement Potential Market of 566 million
consumers
0 Tariff 0 Tariff
PYMEs
Cooperacioacuten
Servicios
Coherencia Regulatoria
Laboral
Defensa Comercial
Medidas Sanitarias y Fitosanitarias Competitividad
Desarrollo
Temas aduaneros Solucioacuten de Controversias
Reglas de Origen
Inversiones
Obstaacuteculos Teacutecnicos al Comercio
Acceso a Mercados Servicios Financieros
Comercio Electroacutenico
Asuntos Legales Administracioacuten Transparencia Anticorrupcioacuten
Excepciones Disposiciones Finales
Medio Ambiente
Propiedad Intelectual
Empresas del Estado
Entrada Temporal
Compras Puacuteblicas
Telecomunicaciones
CONTEXTO Temas Bajo Negociacioacuten
27
6 FINAL REMARKS
The Agreement will allow both countries Establish economic alliances and reciprocal investments
Simplify sanitary and technical regulations
Standardize customs procedures
Faster addressing trade problems through contact points and
Technical Committees
28
MAIN BENEFITS
THANK YOU
Diego Torres Diez
Head Asia and Oceania Department
General Directorate for International Economic Affairs
April 2016
PACIFIC ALLIANCE FIGURES
6th world economy (28 world GDP)
35 population of LAC (216 millions)
527 Latin American exports
37 GDP and 31 FDI of LAC
Source IMF (World Economic Outlook octubre 2014) y World Factbook-CIA World Investment Report 2014 -UNCTAD Trademap () 2013
ACHIEVEMENTS
Framework Agreement
First Additional Protocol to the Framework Agreement
Aditional dispositions on e-commerce amp telecommunications
Intellectual property projects
Consolidation of MILA biggest Latinamerica stock market
Joint Events on Export Promotion
Visa acilities for business people staying over 180 days
Visa tourist exemption
Student Grants
Joint Cooperation Fund of the Pacific Alliance
Inter-institutional Agreement on pharmaceuticals products
Cooperation Agreement in Tourism
Joint Diplomatic and Trade Offices
Migratory Exchange of Information XX032014
Oficina Comercial
ADDITIONAL PROTOCOL
Tariffs elimination bull 100 Tariffs elimination bull 92 immediately once entry into force bull 8 short and medium term (between 3 and 17 years)
Rules of origin Flexibility single rule and accumulation through PA member in order to the commercial integration
Trade facilitation Electronic Certification of Origin Interoperability of the single window Custom Cooperation Authorized Economic Operator
Sanitary and Phytosanitary Measures Increase transparency in the application of sanitary and phytosanitary measures and strengthen the use of science-based
Technical Barriers to Trade Increase transparency and the regulatory cooperation among other matters
Comprehensive Chapters in Services and Investment
Cross-Border Trade in Services and Investment Protect cross border trade in services the investors and their investments in the countries of the Pacific Alliance Telecomunications Ensure of telecommunications services in the region of the Pacific Alliance under free competition particularly in relation to the dominant suppliers E-Commerce Electronic transactions of goods and services shall be regulated including digital products to ensure their safety and efficiency Maritime Services Grant a non-discriminatory treatment to ships from PA countries in its ports the recognition of the documentation of vessels and crew among others Financial Services Grant legal certainty for investors and service providers from the four countries in the financial sector consolidating the laws of each country
ADDITIONAL PROTOCOL
Government Procurement Facilitate and encourage the participation of MSMEs as well expand the coverage of existing agreements including rules and actions
Dispute Settlement Mechanism address to the prevention or settlement of disputes between the Parties concerning the interpretation implementation or application of the Agreement
ADDITIONAL PROTOCOL
NEXT STEPShellip
1 Free Movement of Capitals 11 Financial integration - Pensions portability along with the persons - Foreign Investment promotion policy - Financial inclusion 12 Infrastructure investment - Regional Investment Fund 13 Public Finance - Mechanism for Exchange of Fiscal Information - Natural Disasters Joint Risk Management
2 Free Movement of Goods amp Services - Homologation administrative norms - Foreign Trade Single Windows interoperability - Consumer Rights Booklet - MoU on Exchange Information about controversy solutions for consumer protection - Mining projects
3 Free Movement of People Pacific Alliance Visa
4 Cooperation aerospace cooperation operations start of the Joint Cooperation Fund of the Pacific Alliance
Contexto negociacioacuten TPP DIRECON
El TPP es el proceso de negociacioacuten econoacutemica y comercial maacutes importante que se desarrolla en el escenario internacional que surge con el objetivo de generar un proceso de integracioacuten en la regioacuten Asia Paciacutefico Negociacioacuten de 12 paiacuteses entre las cuales se encuentran dos de las tres economiacuteas maacutes grandes del mundo Espacio donde se estaacute definiendo la nueva arquitectura del comercio internacional estableciendo las reglas o estaacutendares que lo regiraacuten durante los proacuteximos antildeos Ha sido definido por los miembros de APEC como un elemento central para la construccioacuten de la Zona de Libre de Comercio en el Asia Paciacutefico (regioacuten con los niveles maacutes altos de dinamismo econoacutemico) Respecto de nuestros acuerdos vigentes con paiacuteses TPP seraacute posible completar su cobertura incluyendo temas como servicios compras puacuteblicas e inversiones Beneficios Especiacuteficos Acceso a mercados Compras Puacuteblicas Normas de origen y Acumulacioacuten Facilitacioacuten de Comercio Servicios Inversiones Entrada Temporal de Personas de Negocios Comercio Electroacutenico y Telecomunicaciones Asuntos Ambientales y Laborales Coherencia Regulatoria Otros beneficios
TRANSPACIFIC PARTENERSHIP AGREEMENT (TPP) MEMBER COUNTRIES
TPP is one of the most important trade integration initiatives in the current international scenario Two of the three largest economies in the world are members The agreement will help establish rules for international trade in the Asia Pacific region It has been described by APEC members as a central element for the construction of the Free Trade Area in the Asia Pacific
TRANS PACIFIC PARTNERSHIP (TPP)
38
TPP ndash IMPORTANCE FOR CHILE
Chile will participate in the formulation of rules and standards which will govern international trade during the next century TPP will be a key element to consolidate trade integration between Chile and Asia TPP will position Chile as a business platform to access markets of Latin-America It will enable Chile to enhance coverage of current existing bilateral FTAs
39
Chapter on Rules of Origin meets the standards that Chile has negotiated in recent agreements Committees regarding Technical Barriers to Trade (TBT ) and Sanitary and Phytosanitary Measures (SPS) are included Regarding the chapter on services will grant new opportunities in trade in services The inclusion of a chapter on financial services enable financial institutions in Chile and Thailand obtain a non- discriminatory treatment and to establish andor acquire financial institutions in both financial markets The Agreement also includes a Cooperation chapter that will allow closer cooperation relations between the public private and academic spheres in areas of mutual interest Commitment of start negotiation of an investment chapter
22
CHILE ndash THAILAND FTA
23
5 PRODUCTION LINKAGES
A new step forward in Chilean trade policy designed to leverage business opportunities generated by Chilersquos network of trade agreements Consists of business alliances with trading partners for in-country goods production using imported supplies Production linkages involve processing partner-country materials or parts in Chile Finished value-added goods can then be re-exported to countries making use of Chile tariff reductions Rules of origin play a fundamental role in securing tariff reductions
24
WHAT ARE PRODUCTION LINKAGES
FIRST STEP
The material supply or consumable good is imported to the country with preferential treatment
SUMMARY
Production or
assembly in Chile
FTA Final good
Supplies
Preferencia
Arancelaria
Rules of
Origin
FTAs
Tariff
SECOND STEP The production process is carried out in Chile or Thailand in order to comply with the rules of origin of different trade agreements
THRID STEP
The final good is exported (with Chilean of Thai origin) to other markets
EXAMPLE
Chile ndash Thailand Free Trade
Agreement Potential Market of 566 million
consumers
0 Tariff 0 Tariff
PYMEs
Cooperacioacuten
Servicios
Coherencia Regulatoria
Laboral
Defensa Comercial
Medidas Sanitarias y Fitosanitarias Competitividad
Desarrollo
Temas aduaneros Solucioacuten de Controversias
Reglas de Origen
Inversiones
Obstaacuteculos Teacutecnicos al Comercio
Acceso a Mercados Servicios Financieros
Comercio Electroacutenico
Asuntos Legales Administracioacuten Transparencia Anticorrupcioacuten
Excepciones Disposiciones Finales
Medio Ambiente
Propiedad Intelectual
Empresas del Estado
Entrada Temporal
Compras Puacuteblicas
Telecomunicaciones
CONTEXTO Temas Bajo Negociacioacuten
27
6 FINAL REMARKS
The Agreement will allow both countries Establish economic alliances and reciprocal investments
Simplify sanitary and technical regulations
Standardize customs procedures
Faster addressing trade problems through contact points and
Technical Committees
28
MAIN BENEFITS
THANK YOU
Diego Torres Diez
Head Asia and Oceania Department
General Directorate for International Economic Affairs
April 2016
PACIFIC ALLIANCE FIGURES
6th world economy (28 world GDP)
35 population of LAC (216 millions)
527 Latin American exports
37 GDP and 31 FDI of LAC
Source IMF (World Economic Outlook octubre 2014) y World Factbook-CIA World Investment Report 2014 -UNCTAD Trademap () 2013
ACHIEVEMENTS
Framework Agreement
First Additional Protocol to the Framework Agreement
Aditional dispositions on e-commerce amp telecommunications
Intellectual property projects
Consolidation of MILA biggest Latinamerica stock market
Joint Events on Export Promotion
Visa acilities for business people staying over 180 days
Visa tourist exemption
Student Grants
Joint Cooperation Fund of the Pacific Alliance
Inter-institutional Agreement on pharmaceuticals products
Cooperation Agreement in Tourism
Joint Diplomatic and Trade Offices
Migratory Exchange of Information XX032014
Oficina Comercial
ADDITIONAL PROTOCOL
Tariffs elimination bull 100 Tariffs elimination bull 92 immediately once entry into force bull 8 short and medium term (between 3 and 17 years)
Rules of origin Flexibility single rule and accumulation through PA member in order to the commercial integration
Trade facilitation Electronic Certification of Origin Interoperability of the single window Custom Cooperation Authorized Economic Operator
Sanitary and Phytosanitary Measures Increase transparency in the application of sanitary and phytosanitary measures and strengthen the use of science-based
Technical Barriers to Trade Increase transparency and the regulatory cooperation among other matters
Comprehensive Chapters in Services and Investment
Cross-Border Trade in Services and Investment Protect cross border trade in services the investors and their investments in the countries of the Pacific Alliance Telecomunications Ensure of telecommunications services in the region of the Pacific Alliance under free competition particularly in relation to the dominant suppliers E-Commerce Electronic transactions of goods and services shall be regulated including digital products to ensure their safety and efficiency Maritime Services Grant a non-discriminatory treatment to ships from PA countries in its ports the recognition of the documentation of vessels and crew among others Financial Services Grant legal certainty for investors and service providers from the four countries in the financial sector consolidating the laws of each country
ADDITIONAL PROTOCOL
Government Procurement Facilitate and encourage the participation of MSMEs as well expand the coverage of existing agreements including rules and actions
Dispute Settlement Mechanism address to the prevention or settlement of disputes between the Parties concerning the interpretation implementation or application of the Agreement
ADDITIONAL PROTOCOL
NEXT STEPShellip
1 Free Movement of Capitals 11 Financial integration - Pensions portability along with the persons - Foreign Investment promotion policy - Financial inclusion 12 Infrastructure investment - Regional Investment Fund 13 Public Finance - Mechanism for Exchange of Fiscal Information - Natural Disasters Joint Risk Management
2 Free Movement of Goods amp Services - Homologation administrative norms - Foreign Trade Single Windows interoperability - Consumer Rights Booklet - MoU on Exchange Information about controversy solutions for consumer protection - Mining projects
3 Free Movement of People Pacific Alliance Visa
4 Cooperation aerospace cooperation operations start of the Joint Cooperation Fund of the Pacific Alliance
Contexto negociacioacuten TPP DIRECON
El TPP es el proceso de negociacioacuten econoacutemica y comercial maacutes importante que se desarrolla en el escenario internacional que surge con el objetivo de generar un proceso de integracioacuten en la regioacuten Asia Paciacutefico Negociacioacuten de 12 paiacuteses entre las cuales se encuentran dos de las tres economiacuteas maacutes grandes del mundo Espacio donde se estaacute definiendo la nueva arquitectura del comercio internacional estableciendo las reglas o estaacutendares que lo regiraacuten durante los proacuteximos antildeos Ha sido definido por los miembros de APEC como un elemento central para la construccioacuten de la Zona de Libre de Comercio en el Asia Paciacutefico (regioacuten con los niveles maacutes altos de dinamismo econoacutemico) Respecto de nuestros acuerdos vigentes con paiacuteses TPP seraacute posible completar su cobertura incluyendo temas como servicios compras puacuteblicas e inversiones Beneficios Especiacuteficos Acceso a mercados Compras Puacuteblicas Normas de origen y Acumulacioacuten Facilitacioacuten de Comercio Servicios Inversiones Entrada Temporal de Personas de Negocios Comercio Electroacutenico y Telecomunicaciones Asuntos Ambientales y Laborales Coherencia Regulatoria Otros beneficios
TRANSPACIFIC PARTENERSHIP AGREEMENT (TPP) MEMBER COUNTRIES
TPP is one of the most important trade integration initiatives in the current international scenario Two of the three largest economies in the world are members The agreement will help establish rules for international trade in the Asia Pacific region It has been described by APEC members as a central element for the construction of the Free Trade Area in the Asia Pacific
TRANS PACIFIC PARTNERSHIP (TPP)
38
TPP ndash IMPORTANCE FOR CHILE
Chile will participate in the formulation of rules and standards which will govern international trade during the next century TPP will be a key element to consolidate trade integration between Chile and Asia TPP will position Chile as a business platform to access markets of Latin-America It will enable Chile to enhance coverage of current existing bilateral FTAs
39
23
5 PRODUCTION LINKAGES
A new step forward in Chilean trade policy designed to leverage business opportunities generated by Chilersquos network of trade agreements Consists of business alliances with trading partners for in-country goods production using imported supplies Production linkages involve processing partner-country materials or parts in Chile Finished value-added goods can then be re-exported to countries making use of Chile tariff reductions Rules of origin play a fundamental role in securing tariff reductions
24
WHAT ARE PRODUCTION LINKAGES
FIRST STEP
The material supply or consumable good is imported to the country with preferential treatment
SUMMARY
Production or
assembly in Chile
FTA Final good
Supplies
Preferencia
Arancelaria
Rules of
Origin
FTAs
Tariff
SECOND STEP The production process is carried out in Chile or Thailand in order to comply with the rules of origin of different trade agreements
THRID STEP
The final good is exported (with Chilean of Thai origin) to other markets
EXAMPLE
Chile ndash Thailand Free Trade
Agreement Potential Market of 566 million
consumers
0 Tariff 0 Tariff
PYMEs
Cooperacioacuten
Servicios
Coherencia Regulatoria
Laboral
Defensa Comercial
Medidas Sanitarias y Fitosanitarias Competitividad
Desarrollo
Temas aduaneros Solucioacuten de Controversias
Reglas de Origen
Inversiones
Obstaacuteculos Teacutecnicos al Comercio
Acceso a Mercados Servicios Financieros
Comercio Electroacutenico
Asuntos Legales Administracioacuten Transparencia Anticorrupcioacuten
Excepciones Disposiciones Finales
Medio Ambiente
Propiedad Intelectual
Empresas del Estado
Entrada Temporal
Compras Puacuteblicas
Telecomunicaciones
CONTEXTO Temas Bajo Negociacioacuten
27
6 FINAL REMARKS
The Agreement will allow both countries Establish economic alliances and reciprocal investments
Simplify sanitary and technical regulations
Standardize customs procedures
Faster addressing trade problems through contact points and
Technical Committees
28
MAIN BENEFITS
THANK YOU
Diego Torres Diez
Head Asia and Oceania Department
General Directorate for International Economic Affairs
April 2016
PACIFIC ALLIANCE FIGURES
6th world economy (28 world GDP)
35 population of LAC (216 millions)
527 Latin American exports
37 GDP and 31 FDI of LAC
Source IMF (World Economic Outlook octubre 2014) y World Factbook-CIA World Investment Report 2014 -UNCTAD Trademap () 2013
ACHIEVEMENTS
Framework Agreement
First Additional Protocol to the Framework Agreement
Aditional dispositions on e-commerce amp telecommunications
Intellectual property projects
Consolidation of MILA biggest Latinamerica stock market
Joint Events on Export Promotion
Visa acilities for business people staying over 180 days
Visa tourist exemption
Student Grants
Joint Cooperation Fund of the Pacific Alliance
Inter-institutional Agreement on pharmaceuticals products
Cooperation Agreement in Tourism
Joint Diplomatic and Trade Offices
Migratory Exchange of Information XX032014
Oficina Comercial
ADDITIONAL PROTOCOL
Tariffs elimination bull 100 Tariffs elimination bull 92 immediately once entry into force bull 8 short and medium term (between 3 and 17 years)
Rules of origin Flexibility single rule and accumulation through PA member in order to the commercial integration
Trade facilitation Electronic Certification of Origin Interoperability of the single window Custom Cooperation Authorized Economic Operator
Sanitary and Phytosanitary Measures Increase transparency in the application of sanitary and phytosanitary measures and strengthen the use of science-based
Technical Barriers to Trade Increase transparency and the regulatory cooperation among other matters
Comprehensive Chapters in Services and Investment
Cross-Border Trade in Services and Investment Protect cross border trade in services the investors and their investments in the countries of the Pacific Alliance Telecomunications Ensure of telecommunications services in the region of the Pacific Alliance under free competition particularly in relation to the dominant suppliers E-Commerce Electronic transactions of goods and services shall be regulated including digital products to ensure their safety and efficiency Maritime Services Grant a non-discriminatory treatment to ships from PA countries in its ports the recognition of the documentation of vessels and crew among others Financial Services Grant legal certainty for investors and service providers from the four countries in the financial sector consolidating the laws of each country
ADDITIONAL PROTOCOL
Government Procurement Facilitate and encourage the participation of MSMEs as well expand the coverage of existing agreements including rules and actions
Dispute Settlement Mechanism address to the prevention or settlement of disputes between the Parties concerning the interpretation implementation or application of the Agreement
ADDITIONAL PROTOCOL
NEXT STEPShellip
1 Free Movement of Capitals 11 Financial integration - Pensions portability along with the persons - Foreign Investment promotion policy - Financial inclusion 12 Infrastructure investment - Regional Investment Fund 13 Public Finance - Mechanism for Exchange of Fiscal Information - Natural Disasters Joint Risk Management
2 Free Movement of Goods amp Services - Homologation administrative norms - Foreign Trade Single Windows interoperability - Consumer Rights Booklet - MoU on Exchange Information about controversy solutions for consumer protection - Mining projects
3 Free Movement of People Pacific Alliance Visa
4 Cooperation aerospace cooperation operations start of the Joint Cooperation Fund of the Pacific Alliance
Contexto negociacioacuten TPP DIRECON
El TPP es el proceso de negociacioacuten econoacutemica y comercial maacutes importante que se desarrolla en el escenario internacional que surge con el objetivo de generar un proceso de integracioacuten en la regioacuten Asia Paciacutefico Negociacioacuten de 12 paiacuteses entre las cuales se encuentran dos de las tres economiacuteas maacutes grandes del mundo Espacio donde se estaacute definiendo la nueva arquitectura del comercio internacional estableciendo las reglas o estaacutendares que lo regiraacuten durante los proacuteximos antildeos Ha sido definido por los miembros de APEC como un elemento central para la construccioacuten de la Zona de Libre de Comercio en el Asia Paciacutefico (regioacuten con los niveles maacutes altos de dinamismo econoacutemico) Respecto de nuestros acuerdos vigentes con paiacuteses TPP seraacute posible completar su cobertura incluyendo temas como servicios compras puacuteblicas e inversiones Beneficios Especiacuteficos Acceso a mercados Compras Puacuteblicas Normas de origen y Acumulacioacuten Facilitacioacuten de Comercio Servicios Inversiones Entrada Temporal de Personas de Negocios Comercio Electroacutenico y Telecomunicaciones Asuntos Ambientales y Laborales Coherencia Regulatoria Otros beneficios
TRANSPACIFIC PARTENERSHIP AGREEMENT (TPP) MEMBER COUNTRIES
TPP is one of the most important trade integration initiatives in the current international scenario Two of the three largest economies in the world are members The agreement will help establish rules for international trade in the Asia Pacific region It has been described by APEC members as a central element for the construction of the Free Trade Area in the Asia Pacific
TRANS PACIFIC PARTNERSHIP (TPP)
38
TPP ndash IMPORTANCE FOR CHILE
Chile will participate in the formulation of rules and standards which will govern international trade during the next century TPP will be a key element to consolidate trade integration between Chile and Asia TPP will position Chile as a business platform to access markets of Latin-America It will enable Chile to enhance coverage of current existing bilateral FTAs
39
A new step forward in Chilean trade policy designed to leverage business opportunities generated by Chilersquos network of trade agreements Consists of business alliances with trading partners for in-country goods production using imported supplies Production linkages involve processing partner-country materials or parts in Chile Finished value-added goods can then be re-exported to countries making use of Chile tariff reductions Rules of origin play a fundamental role in securing tariff reductions
24
WHAT ARE PRODUCTION LINKAGES
FIRST STEP
The material supply or consumable good is imported to the country with preferential treatment
SUMMARY
Production or
assembly in Chile
FTA Final good
Supplies
Preferencia
Arancelaria
Rules of
Origin
FTAs
Tariff
SECOND STEP The production process is carried out in Chile or Thailand in order to comply with the rules of origin of different trade agreements
THRID STEP
The final good is exported (with Chilean of Thai origin) to other markets
EXAMPLE
Chile ndash Thailand Free Trade
Agreement Potential Market of 566 million
consumers
0 Tariff 0 Tariff
PYMEs
Cooperacioacuten
Servicios
Coherencia Regulatoria
Laboral
Defensa Comercial
Medidas Sanitarias y Fitosanitarias Competitividad
Desarrollo
Temas aduaneros Solucioacuten de Controversias
Reglas de Origen
Inversiones
Obstaacuteculos Teacutecnicos al Comercio
Acceso a Mercados Servicios Financieros
Comercio Electroacutenico
Asuntos Legales Administracioacuten Transparencia Anticorrupcioacuten
Excepciones Disposiciones Finales
Medio Ambiente
Propiedad Intelectual
Empresas del Estado
Entrada Temporal
Compras Puacuteblicas
Telecomunicaciones
CONTEXTO Temas Bajo Negociacioacuten
27
6 FINAL REMARKS
The Agreement will allow both countries Establish economic alliances and reciprocal investments
Simplify sanitary and technical regulations
Standardize customs procedures
Faster addressing trade problems through contact points and
Technical Committees
28
MAIN BENEFITS
THANK YOU
Diego Torres Diez
Head Asia and Oceania Department
General Directorate for International Economic Affairs
April 2016
PACIFIC ALLIANCE FIGURES
6th world economy (28 world GDP)
35 population of LAC (216 millions)
527 Latin American exports
37 GDP and 31 FDI of LAC
Source IMF (World Economic Outlook octubre 2014) y World Factbook-CIA World Investment Report 2014 -UNCTAD Trademap () 2013
ACHIEVEMENTS
Framework Agreement
First Additional Protocol to the Framework Agreement
Aditional dispositions on e-commerce amp telecommunications
Intellectual property projects
Consolidation of MILA biggest Latinamerica stock market
Joint Events on Export Promotion
Visa acilities for business people staying over 180 days
Visa tourist exemption
Student Grants
Joint Cooperation Fund of the Pacific Alliance
Inter-institutional Agreement on pharmaceuticals products
Cooperation Agreement in Tourism
Joint Diplomatic and Trade Offices
Migratory Exchange of Information XX032014
Oficina Comercial
ADDITIONAL PROTOCOL
Tariffs elimination bull 100 Tariffs elimination bull 92 immediately once entry into force bull 8 short and medium term (between 3 and 17 years)
Rules of origin Flexibility single rule and accumulation through PA member in order to the commercial integration
Trade facilitation Electronic Certification of Origin Interoperability of the single window Custom Cooperation Authorized Economic Operator
Sanitary and Phytosanitary Measures Increase transparency in the application of sanitary and phytosanitary measures and strengthen the use of science-based
Technical Barriers to Trade Increase transparency and the regulatory cooperation among other matters
Comprehensive Chapters in Services and Investment
Cross-Border Trade in Services and Investment Protect cross border trade in services the investors and their investments in the countries of the Pacific Alliance Telecomunications Ensure of telecommunications services in the region of the Pacific Alliance under free competition particularly in relation to the dominant suppliers E-Commerce Electronic transactions of goods and services shall be regulated including digital products to ensure their safety and efficiency Maritime Services Grant a non-discriminatory treatment to ships from PA countries in its ports the recognition of the documentation of vessels and crew among others Financial Services Grant legal certainty for investors and service providers from the four countries in the financial sector consolidating the laws of each country
ADDITIONAL PROTOCOL
Government Procurement Facilitate and encourage the participation of MSMEs as well expand the coverage of existing agreements including rules and actions
Dispute Settlement Mechanism address to the prevention or settlement of disputes between the Parties concerning the interpretation implementation or application of the Agreement
ADDITIONAL PROTOCOL
NEXT STEPShellip
1 Free Movement of Capitals 11 Financial integration - Pensions portability along with the persons - Foreign Investment promotion policy - Financial inclusion 12 Infrastructure investment - Regional Investment Fund 13 Public Finance - Mechanism for Exchange of Fiscal Information - Natural Disasters Joint Risk Management
2 Free Movement of Goods amp Services - Homologation administrative norms - Foreign Trade Single Windows interoperability - Consumer Rights Booklet - MoU on Exchange Information about controversy solutions for consumer protection - Mining projects
3 Free Movement of People Pacific Alliance Visa
4 Cooperation aerospace cooperation operations start of the Joint Cooperation Fund of the Pacific Alliance
Contexto negociacioacuten TPP DIRECON
El TPP es el proceso de negociacioacuten econoacutemica y comercial maacutes importante que se desarrolla en el escenario internacional que surge con el objetivo de generar un proceso de integracioacuten en la regioacuten Asia Paciacutefico Negociacioacuten de 12 paiacuteses entre las cuales se encuentran dos de las tres economiacuteas maacutes grandes del mundo Espacio donde se estaacute definiendo la nueva arquitectura del comercio internacional estableciendo las reglas o estaacutendares que lo regiraacuten durante los proacuteximos antildeos Ha sido definido por los miembros de APEC como un elemento central para la construccioacuten de la Zona de Libre de Comercio en el Asia Paciacutefico (regioacuten con los niveles maacutes altos de dinamismo econoacutemico) Respecto de nuestros acuerdos vigentes con paiacuteses TPP seraacute posible completar su cobertura incluyendo temas como servicios compras puacuteblicas e inversiones Beneficios Especiacuteficos Acceso a mercados Compras Puacuteblicas Normas de origen y Acumulacioacuten Facilitacioacuten de Comercio Servicios Inversiones Entrada Temporal de Personas de Negocios Comercio Electroacutenico y Telecomunicaciones Asuntos Ambientales y Laborales Coherencia Regulatoria Otros beneficios
TRANSPACIFIC PARTENERSHIP AGREEMENT (TPP) MEMBER COUNTRIES
TPP is one of the most important trade integration initiatives in the current international scenario Two of the three largest economies in the world are members The agreement will help establish rules for international trade in the Asia Pacific region It has been described by APEC members as a central element for the construction of the Free Trade Area in the Asia Pacific
TRANS PACIFIC PARTNERSHIP (TPP)
38
TPP ndash IMPORTANCE FOR CHILE
Chile will participate in the formulation of rules and standards which will govern international trade during the next century TPP will be a key element to consolidate trade integration between Chile and Asia TPP will position Chile as a business platform to access markets of Latin-America It will enable Chile to enhance coverage of current existing bilateral FTAs
39
FIRST STEP
The material supply or consumable good is imported to the country with preferential treatment
SUMMARY
Production or
assembly in Chile
FTA Final good
Supplies
Preferencia
Arancelaria
Rules of
Origin
FTAs
Tariff
SECOND STEP The production process is carried out in Chile or Thailand in order to comply with the rules of origin of different trade agreements
THRID STEP
The final good is exported (with Chilean of Thai origin) to other markets
EXAMPLE
Chile ndash Thailand Free Trade
Agreement Potential Market of 566 million
consumers
0 Tariff 0 Tariff
PYMEs
Cooperacioacuten
Servicios
Coherencia Regulatoria
Laboral
Defensa Comercial
Medidas Sanitarias y Fitosanitarias Competitividad
Desarrollo
Temas aduaneros Solucioacuten de Controversias
Reglas de Origen
Inversiones
Obstaacuteculos Teacutecnicos al Comercio
Acceso a Mercados Servicios Financieros
Comercio Electroacutenico
Asuntos Legales Administracioacuten Transparencia Anticorrupcioacuten
Excepciones Disposiciones Finales
Medio Ambiente
Propiedad Intelectual
Empresas del Estado
Entrada Temporal
Compras Puacuteblicas
Telecomunicaciones
CONTEXTO Temas Bajo Negociacioacuten
27
6 FINAL REMARKS
The Agreement will allow both countries Establish economic alliances and reciprocal investments
Simplify sanitary and technical regulations
Standardize customs procedures
Faster addressing trade problems through contact points and
Technical Committees
28
MAIN BENEFITS
THANK YOU
Diego Torres Diez
Head Asia and Oceania Department
General Directorate for International Economic Affairs
April 2016
PACIFIC ALLIANCE FIGURES
6th world economy (28 world GDP)
35 population of LAC (216 millions)
527 Latin American exports
37 GDP and 31 FDI of LAC
Source IMF (World Economic Outlook octubre 2014) y World Factbook-CIA World Investment Report 2014 -UNCTAD Trademap () 2013
ACHIEVEMENTS
Framework Agreement
First Additional Protocol to the Framework Agreement
Aditional dispositions on e-commerce amp telecommunications
Intellectual property projects
Consolidation of MILA biggest Latinamerica stock market
Joint Events on Export Promotion
Visa acilities for business people staying over 180 days
Visa tourist exemption
Student Grants
Joint Cooperation Fund of the Pacific Alliance
Inter-institutional Agreement on pharmaceuticals products
Cooperation Agreement in Tourism
Joint Diplomatic and Trade Offices
Migratory Exchange of Information XX032014
Oficina Comercial
ADDITIONAL PROTOCOL
Tariffs elimination bull 100 Tariffs elimination bull 92 immediately once entry into force bull 8 short and medium term (between 3 and 17 years)
Rules of origin Flexibility single rule and accumulation through PA member in order to the commercial integration
Trade facilitation Electronic Certification of Origin Interoperability of the single window Custom Cooperation Authorized Economic Operator
Sanitary and Phytosanitary Measures Increase transparency in the application of sanitary and phytosanitary measures and strengthen the use of science-based
Technical Barriers to Trade Increase transparency and the regulatory cooperation among other matters
Comprehensive Chapters in Services and Investment
Cross-Border Trade in Services and Investment Protect cross border trade in services the investors and their investments in the countries of the Pacific Alliance Telecomunications Ensure of telecommunications services in the region of the Pacific Alliance under free competition particularly in relation to the dominant suppliers E-Commerce Electronic transactions of goods and services shall be regulated including digital products to ensure their safety and efficiency Maritime Services Grant a non-discriminatory treatment to ships from PA countries in its ports the recognition of the documentation of vessels and crew among others Financial Services Grant legal certainty for investors and service providers from the four countries in the financial sector consolidating the laws of each country
ADDITIONAL PROTOCOL
Government Procurement Facilitate and encourage the participation of MSMEs as well expand the coverage of existing agreements including rules and actions
Dispute Settlement Mechanism address to the prevention or settlement of disputes between the Parties concerning the interpretation implementation or application of the Agreement
ADDITIONAL PROTOCOL
NEXT STEPShellip
1 Free Movement of Capitals 11 Financial integration - Pensions portability along with the persons - Foreign Investment promotion policy - Financial inclusion 12 Infrastructure investment - Regional Investment Fund 13 Public Finance - Mechanism for Exchange of Fiscal Information - Natural Disasters Joint Risk Management
2 Free Movement of Goods amp Services - Homologation administrative norms - Foreign Trade Single Windows interoperability - Consumer Rights Booklet - MoU on Exchange Information about controversy solutions for consumer protection - Mining projects
3 Free Movement of People Pacific Alliance Visa
4 Cooperation aerospace cooperation operations start of the Joint Cooperation Fund of the Pacific Alliance
Contexto negociacioacuten TPP DIRECON
El TPP es el proceso de negociacioacuten econoacutemica y comercial maacutes importante que se desarrolla en el escenario internacional que surge con el objetivo de generar un proceso de integracioacuten en la regioacuten Asia Paciacutefico Negociacioacuten de 12 paiacuteses entre las cuales se encuentran dos de las tres economiacuteas maacutes grandes del mundo Espacio donde se estaacute definiendo la nueva arquitectura del comercio internacional estableciendo las reglas o estaacutendares que lo regiraacuten durante los proacuteximos antildeos Ha sido definido por los miembros de APEC como un elemento central para la construccioacuten de la Zona de Libre de Comercio en el Asia Paciacutefico (regioacuten con los niveles maacutes altos de dinamismo econoacutemico) Respecto de nuestros acuerdos vigentes con paiacuteses TPP seraacute posible completar su cobertura incluyendo temas como servicios compras puacuteblicas e inversiones Beneficios Especiacuteficos Acceso a mercados Compras Puacuteblicas Normas de origen y Acumulacioacuten Facilitacioacuten de Comercio Servicios Inversiones Entrada Temporal de Personas de Negocios Comercio Electroacutenico y Telecomunicaciones Asuntos Ambientales y Laborales Coherencia Regulatoria Otros beneficios
TRANSPACIFIC PARTENERSHIP AGREEMENT (TPP) MEMBER COUNTRIES
TPP is one of the most important trade integration initiatives in the current international scenario Two of the three largest economies in the world are members The agreement will help establish rules for international trade in the Asia Pacific region It has been described by APEC members as a central element for the construction of the Free Trade Area in the Asia Pacific
TRANS PACIFIC PARTNERSHIP (TPP)
38
TPP ndash IMPORTANCE FOR CHILE
Chile will participate in the formulation of rules and standards which will govern international trade during the next century TPP will be a key element to consolidate trade integration between Chile and Asia TPP will position Chile as a business platform to access markets of Latin-America It will enable Chile to enhance coverage of current existing bilateral FTAs
39
EXAMPLE
Chile ndash Thailand Free Trade
Agreement Potential Market of 566 million
consumers
0 Tariff 0 Tariff
PYMEs
Cooperacioacuten
Servicios
Coherencia Regulatoria
Laboral
Defensa Comercial
Medidas Sanitarias y Fitosanitarias Competitividad
Desarrollo
Temas aduaneros Solucioacuten de Controversias
Reglas de Origen
Inversiones
Obstaacuteculos Teacutecnicos al Comercio
Acceso a Mercados Servicios Financieros
Comercio Electroacutenico
Asuntos Legales Administracioacuten Transparencia Anticorrupcioacuten
Excepciones Disposiciones Finales
Medio Ambiente
Propiedad Intelectual
Empresas del Estado
Entrada Temporal
Compras Puacuteblicas
Telecomunicaciones
CONTEXTO Temas Bajo Negociacioacuten
27
6 FINAL REMARKS
The Agreement will allow both countries Establish economic alliances and reciprocal investments
Simplify sanitary and technical regulations
Standardize customs procedures
Faster addressing trade problems through contact points and
Technical Committees
28
MAIN BENEFITS
THANK YOU
Diego Torres Diez
Head Asia and Oceania Department
General Directorate for International Economic Affairs
April 2016
PACIFIC ALLIANCE FIGURES
6th world economy (28 world GDP)
35 population of LAC (216 millions)
527 Latin American exports
37 GDP and 31 FDI of LAC
Source IMF (World Economic Outlook octubre 2014) y World Factbook-CIA World Investment Report 2014 -UNCTAD Trademap () 2013
ACHIEVEMENTS
Framework Agreement
First Additional Protocol to the Framework Agreement
Aditional dispositions on e-commerce amp telecommunications
Intellectual property projects
Consolidation of MILA biggest Latinamerica stock market
Joint Events on Export Promotion
Visa acilities for business people staying over 180 days
Visa tourist exemption
Student Grants
Joint Cooperation Fund of the Pacific Alliance
Inter-institutional Agreement on pharmaceuticals products
Cooperation Agreement in Tourism
Joint Diplomatic and Trade Offices
Migratory Exchange of Information XX032014
Oficina Comercial
ADDITIONAL PROTOCOL
Tariffs elimination bull 100 Tariffs elimination bull 92 immediately once entry into force bull 8 short and medium term (between 3 and 17 years)
Rules of origin Flexibility single rule and accumulation through PA member in order to the commercial integration
Trade facilitation Electronic Certification of Origin Interoperability of the single window Custom Cooperation Authorized Economic Operator
Sanitary and Phytosanitary Measures Increase transparency in the application of sanitary and phytosanitary measures and strengthen the use of science-based
Technical Barriers to Trade Increase transparency and the regulatory cooperation among other matters
Comprehensive Chapters in Services and Investment
Cross-Border Trade in Services and Investment Protect cross border trade in services the investors and their investments in the countries of the Pacific Alliance Telecomunications Ensure of telecommunications services in the region of the Pacific Alliance under free competition particularly in relation to the dominant suppliers E-Commerce Electronic transactions of goods and services shall be regulated including digital products to ensure their safety and efficiency Maritime Services Grant a non-discriminatory treatment to ships from PA countries in its ports the recognition of the documentation of vessels and crew among others Financial Services Grant legal certainty for investors and service providers from the four countries in the financial sector consolidating the laws of each country
ADDITIONAL PROTOCOL
Government Procurement Facilitate and encourage the participation of MSMEs as well expand the coverage of existing agreements including rules and actions
Dispute Settlement Mechanism address to the prevention or settlement of disputes between the Parties concerning the interpretation implementation or application of the Agreement
ADDITIONAL PROTOCOL
NEXT STEPShellip
1 Free Movement of Capitals 11 Financial integration - Pensions portability along with the persons - Foreign Investment promotion policy - Financial inclusion 12 Infrastructure investment - Regional Investment Fund 13 Public Finance - Mechanism for Exchange of Fiscal Information - Natural Disasters Joint Risk Management
2 Free Movement of Goods amp Services - Homologation administrative norms - Foreign Trade Single Windows interoperability - Consumer Rights Booklet - MoU on Exchange Information about controversy solutions for consumer protection - Mining projects
3 Free Movement of People Pacific Alliance Visa
4 Cooperation aerospace cooperation operations start of the Joint Cooperation Fund of the Pacific Alliance
Contexto negociacioacuten TPP DIRECON
El TPP es el proceso de negociacioacuten econoacutemica y comercial maacutes importante que se desarrolla en el escenario internacional que surge con el objetivo de generar un proceso de integracioacuten en la regioacuten Asia Paciacutefico Negociacioacuten de 12 paiacuteses entre las cuales se encuentran dos de las tres economiacuteas maacutes grandes del mundo Espacio donde se estaacute definiendo la nueva arquitectura del comercio internacional estableciendo las reglas o estaacutendares que lo regiraacuten durante los proacuteximos antildeos Ha sido definido por los miembros de APEC como un elemento central para la construccioacuten de la Zona de Libre de Comercio en el Asia Paciacutefico (regioacuten con los niveles maacutes altos de dinamismo econoacutemico) Respecto de nuestros acuerdos vigentes con paiacuteses TPP seraacute posible completar su cobertura incluyendo temas como servicios compras puacuteblicas e inversiones Beneficios Especiacuteficos Acceso a mercados Compras Puacuteblicas Normas de origen y Acumulacioacuten Facilitacioacuten de Comercio Servicios Inversiones Entrada Temporal de Personas de Negocios Comercio Electroacutenico y Telecomunicaciones Asuntos Ambientales y Laborales Coherencia Regulatoria Otros beneficios
TRANSPACIFIC PARTENERSHIP AGREEMENT (TPP) MEMBER COUNTRIES
TPP is one of the most important trade integration initiatives in the current international scenario Two of the three largest economies in the world are members The agreement will help establish rules for international trade in the Asia Pacific region It has been described by APEC members as a central element for the construction of the Free Trade Area in the Asia Pacific
TRANS PACIFIC PARTNERSHIP (TPP)
38
TPP ndash IMPORTANCE FOR CHILE
Chile will participate in the formulation of rules and standards which will govern international trade during the next century TPP will be a key element to consolidate trade integration between Chile and Asia TPP will position Chile as a business platform to access markets of Latin-America It will enable Chile to enhance coverage of current existing bilateral FTAs
39
PYMEs
Cooperacioacuten
Servicios
Coherencia Regulatoria
Laboral
Defensa Comercial
Medidas Sanitarias y Fitosanitarias Competitividad
Desarrollo
Temas aduaneros Solucioacuten de Controversias
Reglas de Origen
Inversiones
Obstaacuteculos Teacutecnicos al Comercio
Acceso a Mercados Servicios Financieros
Comercio Electroacutenico
Asuntos Legales Administracioacuten Transparencia Anticorrupcioacuten
Excepciones Disposiciones Finales
Medio Ambiente
Propiedad Intelectual
Empresas del Estado
Entrada Temporal
Compras Puacuteblicas
Telecomunicaciones
CONTEXTO Temas Bajo Negociacioacuten
27
6 FINAL REMARKS
The Agreement will allow both countries Establish economic alliances and reciprocal investments
Simplify sanitary and technical regulations
Standardize customs procedures
Faster addressing trade problems through contact points and
Technical Committees
28
MAIN BENEFITS
THANK YOU
Diego Torres Diez
Head Asia and Oceania Department
General Directorate for International Economic Affairs
April 2016
PACIFIC ALLIANCE FIGURES
6th world economy (28 world GDP)
35 population of LAC (216 millions)
527 Latin American exports
37 GDP and 31 FDI of LAC
Source IMF (World Economic Outlook octubre 2014) y World Factbook-CIA World Investment Report 2014 -UNCTAD Trademap () 2013
ACHIEVEMENTS
Framework Agreement
First Additional Protocol to the Framework Agreement
Aditional dispositions on e-commerce amp telecommunications
Intellectual property projects
Consolidation of MILA biggest Latinamerica stock market
Joint Events on Export Promotion
Visa acilities for business people staying over 180 days
Visa tourist exemption
Student Grants
Joint Cooperation Fund of the Pacific Alliance
Inter-institutional Agreement on pharmaceuticals products
Cooperation Agreement in Tourism
Joint Diplomatic and Trade Offices
Migratory Exchange of Information XX032014
Oficina Comercial
ADDITIONAL PROTOCOL
Tariffs elimination bull 100 Tariffs elimination bull 92 immediately once entry into force bull 8 short and medium term (between 3 and 17 years)
Rules of origin Flexibility single rule and accumulation through PA member in order to the commercial integration
Trade facilitation Electronic Certification of Origin Interoperability of the single window Custom Cooperation Authorized Economic Operator
Sanitary and Phytosanitary Measures Increase transparency in the application of sanitary and phytosanitary measures and strengthen the use of science-based
Technical Barriers to Trade Increase transparency and the regulatory cooperation among other matters
Comprehensive Chapters in Services and Investment
Cross-Border Trade in Services and Investment Protect cross border trade in services the investors and their investments in the countries of the Pacific Alliance Telecomunications Ensure of telecommunications services in the region of the Pacific Alliance under free competition particularly in relation to the dominant suppliers E-Commerce Electronic transactions of goods and services shall be regulated including digital products to ensure their safety and efficiency Maritime Services Grant a non-discriminatory treatment to ships from PA countries in its ports the recognition of the documentation of vessels and crew among others Financial Services Grant legal certainty for investors and service providers from the four countries in the financial sector consolidating the laws of each country
ADDITIONAL PROTOCOL
Government Procurement Facilitate and encourage the participation of MSMEs as well expand the coverage of existing agreements including rules and actions
Dispute Settlement Mechanism address to the prevention or settlement of disputes between the Parties concerning the interpretation implementation or application of the Agreement
ADDITIONAL PROTOCOL
NEXT STEPShellip
1 Free Movement of Capitals 11 Financial integration - Pensions portability along with the persons - Foreign Investment promotion policy - Financial inclusion 12 Infrastructure investment - Regional Investment Fund 13 Public Finance - Mechanism for Exchange of Fiscal Information - Natural Disasters Joint Risk Management
2 Free Movement of Goods amp Services - Homologation administrative norms - Foreign Trade Single Windows interoperability - Consumer Rights Booklet - MoU on Exchange Information about controversy solutions for consumer protection - Mining projects
3 Free Movement of People Pacific Alliance Visa
4 Cooperation aerospace cooperation operations start of the Joint Cooperation Fund of the Pacific Alliance
Contexto negociacioacuten TPP DIRECON
El TPP es el proceso de negociacioacuten econoacutemica y comercial maacutes importante que se desarrolla en el escenario internacional que surge con el objetivo de generar un proceso de integracioacuten en la regioacuten Asia Paciacutefico Negociacioacuten de 12 paiacuteses entre las cuales se encuentran dos de las tres economiacuteas maacutes grandes del mundo Espacio donde se estaacute definiendo la nueva arquitectura del comercio internacional estableciendo las reglas o estaacutendares que lo regiraacuten durante los proacuteximos antildeos Ha sido definido por los miembros de APEC como un elemento central para la construccioacuten de la Zona de Libre de Comercio en el Asia Paciacutefico (regioacuten con los niveles maacutes altos de dinamismo econoacutemico) Respecto de nuestros acuerdos vigentes con paiacuteses TPP seraacute posible completar su cobertura incluyendo temas como servicios compras puacuteblicas e inversiones Beneficios Especiacuteficos Acceso a mercados Compras Puacuteblicas Normas de origen y Acumulacioacuten Facilitacioacuten de Comercio Servicios Inversiones Entrada Temporal de Personas de Negocios Comercio Electroacutenico y Telecomunicaciones Asuntos Ambientales y Laborales Coherencia Regulatoria Otros beneficios
TRANSPACIFIC PARTENERSHIP AGREEMENT (TPP) MEMBER COUNTRIES
TPP is one of the most important trade integration initiatives in the current international scenario Two of the three largest economies in the world are members The agreement will help establish rules for international trade in the Asia Pacific region It has been described by APEC members as a central element for the construction of the Free Trade Area in the Asia Pacific
TRANS PACIFIC PARTNERSHIP (TPP)
38
TPP ndash IMPORTANCE FOR CHILE
Chile will participate in the formulation of rules and standards which will govern international trade during the next century TPP will be a key element to consolidate trade integration between Chile and Asia TPP will position Chile as a business platform to access markets of Latin-America It will enable Chile to enhance coverage of current existing bilateral FTAs
39
The Agreement will allow both countries Establish economic alliances and reciprocal investments
Simplify sanitary and technical regulations
Standardize customs procedures
Faster addressing trade problems through contact points and
Technical Committees
28
MAIN BENEFITS
THANK YOU
Diego Torres Diez
Head Asia and Oceania Department
General Directorate for International Economic Affairs
April 2016
PACIFIC ALLIANCE FIGURES
6th world economy (28 world GDP)
35 population of LAC (216 millions)
527 Latin American exports
37 GDP and 31 FDI of LAC
Source IMF (World Economic Outlook octubre 2014) y World Factbook-CIA World Investment Report 2014 -UNCTAD Trademap () 2013
ACHIEVEMENTS
Framework Agreement
First Additional Protocol to the Framework Agreement
Aditional dispositions on e-commerce amp telecommunications
Intellectual property projects
Consolidation of MILA biggest Latinamerica stock market
Joint Events on Export Promotion
Visa acilities for business people staying over 180 days
Visa tourist exemption
Student Grants
Joint Cooperation Fund of the Pacific Alliance
Inter-institutional Agreement on pharmaceuticals products
Cooperation Agreement in Tourism
Joint Diplomatic and Trade Offices
Migratory Exchange of Information XX032014
Oficina Comercial
ADDITIONAL PROTOCOL
Tariffs elimination bull 100 Tariffs elimination bull 92 immediately once entry into force bull 8 short and medium term (between 3 and 17 years)
Rules of origin Flexibility single rule and accumulation through PA member in order to the commercial integration
Trade facilitation Electronic Certification of Origin Interoperability of the single window Custom Cooperation Authorized Economic Operator
Sanitary and Phytosanitary Measures Increase transparency in the application of sanitary and phytosanitary measures and strengthen the use of science-based
Technical Barriers to Trade Increase transparency and the regulatory cooperation among other matters
Comprehensive Chapters in Services and Investment
Cross-Border Trade in Services and Investment Protect cross border trade in services the investors and their investments in the countries of the Pacific Alliance Telecomunications Ensure of telecommunications services in the region of the Pacific Alliance under free competition particularly in relation to the dominant suppliers E-Commerce Electronic transactions of goods and services shall be regulated including digital products to ensure their safety and efficiency Maritime Services Grant a non-discriminatory treatment to ships from PA countries in its ports the recognition of the documentation of vessels and crew among others Financial Services Grant legal certainty for investors and service providers from the four countries in the financial sector consolidating the laws of each country
ADDITIONAL PROTOCOL
Government Procurement Facilitate and encourage the participation of MSMEs as well expand the coverage of existing agreements including rules and actions
Dispute Settlement Mechanism address to the prevention or settlement of disputes between the Parties concerning the interpretation implementation or application of the Agreement
ADDITIONAL PROTOCOL
NEXT STEPShellip
1 Free Movement of Capitals 11 Financial integration - Pensions portability along with the persons - Foreign Investment promotion policy - Financial inclusion 12 Infrastructure investment - Regional Investment Fund 13 Public Finance - Mechanism for Exchange of Fiscal Information - Natural Disasters Joint Risk Management
2 Free Movement of Goods amp Services - Homologation administrative norms - Foreign Trade Single Windows interoperability - Consumer Rights Booklet - MoU on Exchange Information about controversy solutions for consumer protection - Mining projects
3 Free Movement of People Pacific Alliance Visa
4 Cooperation aerospace cooperation operations start of the Joint Cooperation Fund of the Pacific Alliance
Contexto negociacioacuten TPP DIRECON
El TPP es el proceso de negociacioacuten econoacutemica y comercial maacutes importante que se desarrolla en el escenario internacional que surge con el objetivo de generar un proceso de integracioacuten en la regioacuten Asia Paciacutefico Negociacioacuten de 12 paiacuteses entre las cuales se encuentran dos de las tres economiacuteas maacutes grandes del mundo Espacio donde se estaacute definiendo la nueva arquitectura del comercio internacional estableciendo las reglas o estaacutendares que lo regiraacuten durante los proacuteximos antildeos Ha sido definido por los miembros de APEC como un elemento central para la construccioacuten de la Zona de Libre de Comercio en el Asia Paciacutefico (regioacuten con los niveles maacutes altos de dinamismo econoacutemico) Respecto de nuestros acuerdos vigentes con paiacuteses TPP seraacute posible completar su cobertura incluyendo temas como servicios compras puacuteblicas e inversiones Beneficios Especiacuteficos Acceso a mercados Compras Puacuteblicas Normas de origen y Acumulacioacuten Facilitacioacuten de Comercio Servicios Inversiones Entrada Temporal de Personas de Negocios Comercio Electroacutenico y Telecomunicaciones Asuntos Ambientales y Laborales Coherencia Regulatoria Otros beneficios
TRANSPACIFIC PARTENERSHIP AGREEMENT (TPP) MEMBER COUNTRIES
TPP is one of the most important trade integration initiatives in the current international scenario Two of the three largest economies in the world are members The agreement will help establish rules for international trade in the Asia Pacific region It has been described by APEC members as a central element for the construction of the Free Trade Area in the Asia Pacific
TRANS PACIFIC PARTNERSHIP (TPP)
38
TPP ndash IMPORTANCE FOR CHILE
Chile will participate in the formulation of rules and standards which will govern international trade during the next century TPP will be a key element to consolidate trade integration between Chile and Asia TPP will position Chile as a business platform to access markets of Latin-America It will enable Chile to enhance coverage of current existing bilateral FTAs
39
THANK YOU
Diego Torres Diez
Head Asia and Oceania Department
General Directorate for International Economic Affairs
April 2016
PACIFIC ALLIANCE FIGURES
6th world economy (28 world GDP)
35 population of LAC (216 millions)
527 Latin American exports
37 GDP and 31 FDI of LAC
Source IMF (World Economic Outlook octubre 2014) y World Factbook-CIA World Investment Report 2014 -UNCTAD Trademap () 2013
ACHIEVEMENTS
Framework Agreement
First Additional Protocol to the Framework Agreement
Aditional dispositions on e-commerce amp telecommunications
Intellectual property projects
Consolidation of MILA biggest Latinamerica stock market
Joint Events on Export Promotion
Visa acilities for business people staying over 180 days
Visa tourist exemption
Student Grants
Joint Cooperation Fund of the Pacific Alliance
Inter-institutional Agreement on pharmaceuticals products
Cooperation Agreement in Tourism
Joint Diplomatic and Trade Offices
Migratory Exchange of Information XX032014
Oficina Comercial
ADDITIONAL PROTOCOL
Tariffs elimination bull 100 Tariffs elimination bull 92 immediately once entry into force bull 8 short and medium term (between 3 and 17 years)
Rules of origin Flexibility single rule and accumulation through PA member in order to the commercial integration
Trade facilitation Electronic Certification of Origin Interoperability of the single window Custom Cooperation Authorized Economic Operator
Sanitary and Phytosanitary Measures Increase transparency in the application of sanitary and phytosanitary measures and strengthen the use of science-based
Technical Barriers to Trade Increase transparency and the regulatory cooperation among other matters
Comprehensive Chapters in Services and Investment
Cross-Border Trade in Services and Investment Protect cross border trade in services the investors and their investments in the countries of the Pacific Alliance Telecomunications Ensure of telecommunications services in the region of the Pacific Alliance under free competition particularly in relation to the dominant suppliers E-Commerce Electronic transactions of goods and services shall be regulated including digital products to ensure their safety and efficiency Maritime Services Grant a non-discriminatory treatment to ships from PA countries in its ports the recognition of the documentation of vessels and crew among others Financial Services Grant legal certainty for investors and service providers from the four countries in the financial sector consolidating the laws of each country
ADDITIONAL PROTOCOL
Government Procurement Facilitate and encourage the participation of MSMEs as well expand the coverage of existing agreements including rules and actions
Dispute Settlement Mechanism address to the prevention or settlement of disputes between the Parties concerning the interpretation implementation or application of the Agreement
ADDITIONAL PROTOCOL
NEXT STEPShellip
1 Free Movement of Capitals 11 Financial integration - Pensions portability along with the persons - Foreign Investment promotion policy - Financial inclusion 12 Infrastructure investment - Regional Investment Fund 13 Public Finance - Mechanism for Exchange of Fiscal Information - Natural Disasters Joint Risk Management
2 Free Movement of Goods amp Services - Homologation administrative norms - Foreign Trade Single Windows interoperability - Consumer Rights Booklet - MoU on Exchange Information about controversy solutions for consumer protection - Mining projects
3 Free Movement of People Pacific Alliance Visa
4 Cooperation aerospace cooperation operations start of the Joint Cooperation Fund of the Pacific Alliance
Contexto negociacioacuten TPP DIRECON
El TPP es el proceso de negociacioacuten econoacutemica y comercial maacutes importante que se desarrolla en el escenario internacional que surge con el objetivo de generar un proceso de integracioacuten en la regioacuten Asia Paciacutefico Negociacioacuten de 12 paiacuteses entre las cuales se encuentran dos de las tres economiacuteas maacutes grandes del mundo Espacio donde se estaacute definiendo la nueva arquitectura del comercio internacional estableciendo las reglas o estaacutendares que lo regiraacuten durante los proacuteximos antildeos Ha sido definido por los miembros de APEC como un elemento central para la construccioacuten de la Zona de Libre de Comercio en el Asia Paciacutefico (regioacuten con los niveles maacutes altos de dinamismo econoacutemico) Respecto de nuestros acuerdos vigentes con paiacuteses TPP seraacute posible completar su cobertura incluyendo temas como servicios compras puacuteblicas e inversiones Beneficios Especiacuteficos Acceso a mercados Compras Puacuteblicas Normas de origen y Acumulacioacuten Facilitacioacuten de Comercio Servicios Inversiones Entrada Temporal de Personas de Negocios Comercio Electroacutenico y Telecomunicaciones Asuntos Ambientales y Laborales Coherencia Regulatoria Otros beneficios
TRANSPACIFIC PARTENERSHIP AGREEMENT (TPP) MEMBER COUNTRIES
TPP is one of the most important trade integration initiatives in the current international scenario Two of the three largest economies in the world are members The agreement will help establish rules for international trade in the Asia Pacific region It has been described by APEC members as a central element for the construction of the Free Trade Area in the Asia Pacific
TRANS PACIFIC PARTNERSHIP (TPP)
38
TPP ndash IMPORTANCE FOR CHILE
Chile will participate in the formulation of rules and standards which will govern international trade during the next century TPP will be a key element to consolidate trade integration between Chile and Asia TPP will position Chile as a business platform to access markets of Latin-America It will enable Chile to enhance coverage of current existing bilateral FTAs
39
PACIFIC ALLIANCE FIGURES
6th world economy (28 world GDP)
35 population of LAC (216 millions)
527 Latin American exports
37 GDP and 31 FDI of LAC
Source IMF (World Economic Outlook octubre 2014) y World Factbook-CIA World Investment Report 2014 -UNCTAD Trademap () 2013
ACHIEVEMENTS
Framework Agreement
First Additional Protocol to the Framework Agreement
Aditional dispositions on e-commerce amp telecommunications
Intellectual property projects
Consolidation of MILA biggest Latinamerica stock market
Joint Events on Export Promotion
Visa acilities for business people staying over 180 days
Visa tourist exemption
Student Grants
Joint Cooperation Fund of the Pacific Alliance
Inter-institutional Agreement on pharmaceuticals products
Cooperation Agreement in Tourism
Joint Diplomatic and Trade Offices
Migratory Exchange of Information XX032014
Oficina Comercial
ADDITIONAL PROTOCOL
Tariffs elimination bull 100 Tariffs elimination bull 92 immediately once entry into force bull 8 short and medium term (between 3 and 17 years)
Rules of origin Flexibility single rule and accumulation through PA member in order to the commercial integration
Trade facilitation Electronic Certification of Origin Interoperability of the single window Custom Cooperation Authorized Economic Operator
Sanitary and Phytosanitary Measures Increase transparency in the application of sanitary and phytosanitary measures and strengthen the use of science-based
Technical Barriers to Trade Increase transparency and the regulatory cooperation among other matters
Comprehensive Chapters in Services and Investment
Cross-Border Trade in Services and Investment Protect cross border trade in services the investors and their investments in the countries of the Pacific Alliance Telecomunications Ensure of telecommunications services in the region of the Pacific Alliance under free competition particularly in relation to the dominant suppliers E-Commerce Electronic transactions of goods and services shall be regulated including digital products to ensure their safety and efficiency Maritime Services Grant a non-discriminatory treatment to ships from PA countries in its ports the recognition of the documentation of vessels and crew among others Financial Services Grant legal certainty for investors and service providers from the four countries in the financial sector consolidating the laws of each country
ADDITIONAL PROTOCOL
Government Procurement Facilitate and encourage the participation of MSMEs as well expand the coverage of existing agreements including rules and actions
Dispute Settlement Mechanism address to the prevention or settlement of disputes between the Parties concerning the interpretation implementation or application of the Agreement
ADDITIONAL PROTOCOL
NEXT STEPShellip
1 Free Movement of Capitals 11 Financial integration - Pensions portability along with the persons - Foreign Investment promotion policy - Financial inclusion 12 Infrastructure investment - Regional Investment Fund 13 Public Finance - Mechanism for Exchange of Fiscal Information - Natural Disasters Joint Risk Management
2 Free Movement of Goods amp Services - Homologation administrative norms - Foreign Trade Single Windows interoperability - Consumer Rights Booklet - MoU on Exchange Information about controversy solutions for consumer protection - Mining projects
3 Free Movement of People Pacific Alliance Visa
4 Cooperation aerospace cooperation operations start of the Joint Cooperation Fund of the Pacific Alliance
Contexto negociacioacuten TPP DIRECON
El TPP es el proceso de negociacioacuten econoacutemica y comercial maacutes importante que se desarrolla en el escenario internacional que surge con el objetivo de generar un proceso de integracioacuten en la regioacuten Asia Paciacutefico Negociacioacuten de 12 paiacuteses entre las cuales se encuentran dos de las tres economiacuteas maacutes grandes del mundo Espacio donde se estaacute definiendo la nueva arquitectura del comercio internacional estableciendo las reglas o estaacutendares que lo regiraacuten durante los proacuteximos antildeos Ha sido definido por los miembros de APEC como un elemento central para la construccioacuten de la Zona de Libre de Comercio en el Asia Paciacutefico (regioacuten con los niveles maacutes altos de dinamismo econoacutemico) Respecto de nuestros acuerdos vigentes con paiacuteses TPP seraacute posible completar su cobertura incluyendo temas como servicios compras puacuteblicas e inversiones Beneficios Especiacuteficos Acceso a mercados Compras Puacuteblicas Normas de origen y Acumulacioacuten Facilitacioacuten de Comercio Servicios Inversiones Entrada Temporal de Personas de Negocios Comercio Electroacutenico y Telecomunicaciones Asuntos Ambientales y Laborales Coherencia Regulatoria Otros beneficios
TRANSPACIFIC PARTENERSHIP AGREEMENT (TPP) MEMBER COUNTRIES
TPP is one of the most important trade integration initiatives in the current international scenario Two of the three largest economies in the world are members The agreement will help establish rules for international trade in the Asia Pacific region It has been described by APEC members as a central element for the construction of the Free Trade Area in the Asia Pacific
TRANS PACIFIC PARTNERSHIP (TPP)
38
TPP ndash IMPORTANCE FOR CHILE
Chile will participate in the formulation of rules and standards which will govern international trade during the next century TPP will be a key element to consolidate trade integration between Chile and Asia TPP will position Chile as a business platform to access markets of Latin-America It will enable Chile to enhance coverage of current existing bilateral FTAs
39
ACHIEVEMENTS
Framework Agreement
First Additional Protocol to the Framework Agreement
Aditional dispositions on e-commerce amp telecommunications
Intellectual property projects
Consolidation of MILA biggest Latinamerica stock market
Joint Events on Export Promotion
Visa acilities for business people staying over 180 days
Visa tourist exemption
Student Grants
Joint Cooperation Fund of the Pacific Alliance
Inter-institutional Agreement on pharmaceuticals products
Cooperation Agreement in Tourism
Joint Diplomatic and Trade Offices
Migratory Exchange of Information XX032014
Oficina Comercial
ADDITIONAL PROTOCOL
Tariffs elimination bull 100 Tariffs elimination bull 92 immediately once entry into force bull 8 short and medium term (between 3 and 17 years)
Rules of origin Flexibility single rule and accumulation through PA member in order to the commercial integration
Trade facilitation Electronic Certification of Origin Interoperability of the single window Custom Cooperation Authorized Economic Operator
Sanitary and Phytosanitary Measures Increase transparency in the application of sanitary and phytosanitary measures and strengthen the use of science-based
Technical Barriers to Trade Increase transparency and the regulatory cooperation among other matters
Comprehensive Chapters in Services and Investment
Cross-Border Trade in Services and Investment Protect cross border trade in services the investors and their investments in the countries of the Pacific Alliance Telecomunications Ensure of telecommunications services in the region of the Pacific Alliance under free competition particularly in relation to the dominant suppliers E-Commerce Electronic transactions of goods and services shall be regulated including digital products to ensure their safety and efficiency Maritime Services Grant a non-discriminatory treatment to ships from PA countries in its ports the recognition of the documentation of vessels and crew among others Financial Services Grant legal certainty for investors and service providers from the four countries in the financial sector consolidating the laws of each country
ADDITIONAL PROTOCOL
Government Procurement Facilitate and encourage the participation of MSMEs as well expand the coverage of existing agreements including rules and actions
Dispute Settlement Mechanism address to the prevention or settlement of disputes between the Parties concerning the interpretation implementation or application of the Agreement
ADDITIONAL PROTOCOL
NEXT STEPShellip
1 Free Movement of Capitals 11 Financial integration - Pensions portability along with the persons - Foreign Investment promotion policy - Financial inclusion 12 Infrastructure investment - Regional Investment Fund 13 Public Finance - Mechanism for Exchange of Fiscal Information - Natural Disasters Joint Risk Management
2 Free Movement of Goods amp Services - Homologation administrative norms - Foreign Trade Single Windows interoperability - Consumer Rights Booklet - MoU on Exchange Information about controversy solutions for consumer protection - Mining projects
3 Free Movement of People Pacific Alliance Visa
4 Cooperation aerospace cooperation operations start of the Joint Cooperation Fund of the Pacific Alliance
Contexto negociacioacuten TPP DIRECON
El TPP es el proceso de negociacioacuten econoacutemica y comercial maacutes importante que se desarrolla en el escenario internacional que surge con el objetivo de generar un proceso de integracioacuten en la regioacuten Asia Paciacutefico Negociacioacuten de 12 paiacuteses entre las cuales se encuentran dos de las tres economiacuteas maacutes grandes del mundo Espacio donde se estaacute definiendo la nueva arquitectura del comercio internacional estableciendo las reglas o estaacutendares que lo regiraacuten durante los proacuteximos antildeos Ha sido definido por los miembros de APEC como un elemento central para la construccioacuten de la Zona de Libre de Comercio en el Asia Paciacutefico (regioacuten con los niveles maacutes altos de dinamismo econoacutemico) Respecto de nuestros acuerdos vigentes con paiacuteses TPP seraacute posible completar su cobertura incluyendo temas como servicios compras puacuteblicas e inversiones Beneficios Especiacuteficos Acceso a mercados Compras Puacuteblicas Normas de origen y Acumulacioacuten Facilitacioacuten de Comercio Servicios Inversiones Entrada Temporal de Personas de Negocios Comercio Electroacutenico y Telecomunicaciones Asuntos Ambientales y Laborales Coherencia Regulatoria Otros beneficios
TRANSPACIFIC PARTENERSHIP AGREEMENT (TPP) MEMBER COUNTRIES
TPP is one of the most important trade integration initiatives in the current international scenario Two of the three largest economies in the world are members The agreement will help establish rules for international trade in the Asia Pacific region It has been described by APEC members as a central element for the construction of the Free Trade Area in the Asia Pacific
TRANS PACIFIC PARTNERSHIP (TPP)
38
TPP ndash IMPORTANCE FOR CHILE
Chile will participate in the formulation of rules and standards which will govern international trade during the next century TPP will be a key element to consolidate trade integration between Chile and Asia TPP will position Chile as a business platform to access markets of Latin-America It will enable Chile to enhance coverage of current existing bilateral FTAs
39
ADDITIONAL PROTOCOL
Tariffs elimination bull 100 Tariffs elimination bull 92 immediately once entry into force bull 8 short and medium term (between 3 and 17 years)
Rules of origin Flexibility single rule and accumulation through PA member in order to the commercial integration
Trade facilitation Electronic Certification of Origin Interoperability of the single window Custom Cooperation Authorized Economic Operator
Sanitary and Phytosanitary Measures Increase transparency in the application of sanitary and phytosanitary measures and strengthen the use of science-based
Technical Barriers to Trade Increase transparency and the regulatory cooperation among other matters
Comprehensive Chapters in Services and Investment
Cross-Border Trade in Services and Investment Protect cross border trade in services the investors and their investments in the countries of the Pacific Alliance Telecomunications Ensure of telecommunications services in the region of the Pacific Alliance under free competition particularly in relation to the dominant suppliers E-Commerce Electronic transactions of goods and services shall be regulated including digital products to ensure their safety and efficiency Maritime Services Grant a non-discriminatory treatment to ships from PA countries in its ports the recognition of the documentation of vessels and crew among others Financial Services Grant legal certainty for investors and service providers from the four countries in the financial sector consolidating the laws of each country
ADDITIONAL PROTOCOL
Government Procurement Facilitate and encourage the participation of MSMEs as well expand the coverage of existing agreements including rules and actions
Dispute Settlement Mechanism address to the prevention or settlement of disputes between the Parties concerning the interpretation implementation or application of the Agreement
ADDITIONAL PROTOCOL
NEXT STEPShellip
1 Free Movement of Capitals 11 Financial integration - Pensions portability along with the persons - Foreign Investment promotion policy - Financial inclusion 12 Infrastructure investment - Regional Investment Fund 13 Public Finance - Mechanism for Exchange of Fiscal Information - Natural Disasters Joint Risk Management
2 Free Movement of Goods amp Services - Homologation administrative norms - Foreign Trade Single Windows interoperability - Consumer Rights Booklet - MoU on Exchange Information about controversy solutions for consumer protection - Mining projects
3 Free Movement of People Pacific Alliance Visa
4 Cooperation aerospace cooperation operations start of the Joint Cooperation Fund of the Pacific Alliance
Contexto negociacioacuten TPP DIRECON
El TPP es el proceso de negociacioacuten econoacutemica y comercial maacutes importante que se desarrolla en el escenario internacional que surge con el objetivo de generar un proceso de integracioacuten en la regioacuten Asia Paciacutefico Negociacioacuten de 12 paiacuteses entre las cuales se encuentran dos de las tres economiacuteas maacutes grandes del mundo Espacio donde se estaacute definiendo la nueva arquitectura del comercio internacional estableciendo las reglas o estaacutendares que lo regiraacuten durante los proacuteximos antildeos Ha sido definido por los miembros de APEC como un elemento central para la construccioacuten de la Zona de Libre de Comercio en el Asia Paciacutefico (regioacuten con los niveles maacutes altos de dinamismo econoacutemico) Respecto de nuestros acuerdos vigentes con paiacuteses TPP seraacute posible completar su cobertura incluyendo temas como servicios compras puacuteblicas e inversiones Beneficios Especiacuteficos Acceso a mercados Compras Puacuteblicas Normas de origen y Acumulacioacuten Facilitacioacuten de Comercio Servicios Inversiones Entrada Temporal de Personas de Negocios Comercio Electroacutenico y Telecomunicaciones Asuntos Ambientales y Laborales Coherencia Regulatoria Otros beneficios
TRANSPACIFIC PARTENERSHIP AGREEMENT (TPP) MEMBER COUNTRIES
TPP is one of the most important trade integration initiatives in the current international scenario Two of the three largest economies in the world are members The agreement will help establish rules for international trade in the Asia Pacific region It has been described by APEC members as a central element for the construction of the Free Trade Area in the Asia Pacific
TRANS PACIFIC PARTNERSHIP (TPP)
38
TPP ndash IMPORTANCE FOR CHILE
Chile will participate in the formulation of rules and standards which will govern international trade during the next century TPP will be a key element to consolidate trade integration between Chile and Asia TPP will position Chile as a business platform to access markets of Latin-America It will enable Chile to enhance coverage of current existing bilateral FTAs
39
Comprehensive Chapters in Services and Investment
Cross-Border Trade in Services and Investment Protect cross border trade in services the investors and their investments in the countries of the Pacific Alliance Telecomunications Ensure of telecommunications services in the region of the Pacific Alliance under free competition particularly in relation to the dominant suppliers E-Commerce Electronic transactions of goods and services shall be regulated including digital products to ensure their safety and efficiency Maritime Services Grant a non-discriminatory treatment to ships from PA countries in its ports the recognition of the documentation of vessels and crew among others Financial Services Grant legal certainty for investors and service providers from the four countries in the financial sector consolidating the laws of each country
ADDITIONAL PROTOCOL
Government Procurement Facilitate and encourage the participation of MSMEs as well expand the coverage of existing agreements including rules and actions
Dispute Settlement Mechanism address to the prevention or settlement of disputes between the Parties concerning the interpretation implementation or application of the Agreement
ADDITIONAL PROTOCOL
NEXT STEPShellip
1 Free Movement of Capitals 11 Financial integration - Pensions portability along with the persons - Foreign Investment promotion policy - Financial inclusion 12 Infrastructure investment - Regional Investment Fund 13 Public Finance - Mechanism for Exchange of Fiscal Information - Natural Disasters Joint Risk Management
2 Free Movement of Goods amp Services - Homologation administrative norms - Foreign Trade Single Windows interoperability - Consumer Rights Booklet - MoU on Exchange Information about controversy solutions for consumer protection - Mining projects
3 Free Movement of People Pacific Alliance Visa
4 Cooperation aerospace cooperation operations start of the Joint Cooperation Fund of the Pacific Alliance
Contexto negociacioacuten TPP DIRECON
El TPP es el proceso de negociacioacuten econoacutemica y comercial maacutes importante que se desarrolla en el escenario internacional que surge con el objetivo de generar un proceso de integracioacuten en la regioacuten Asia Paciacutefico Negociacioacuten de 12 paiacuteses entre las cuales se encuentran dos de las tres economiacuteas maacutes grandes del mundo Espacio donde se estaacute definiendo la nueva arquitectura del comercio internacional estableciendo las reglas o estaacutendares que lo regiraacuten durante los proacuteximos antildeos Ha sido definido por los miembros de APEC como un elemento central para la construccioacuten de la Zona de Libre de Comercio en el Asia Paciacutefico (regioacuten con los niveles maacutes altos de dinamismo econoacutemico) Respecto de nuestros acuerdos vigentes con paiacuteses TPP seraacute posible completar su cobertura incluyendo temas como servicios compras puacuteblicas e inversiones Beneficios Especiacuteficos Acceso a mercados Compras Puacuteblicas Normas de origen y Acumulacioacuten Facilitacioacuten de Comercio Servicios Inversiones Entrada Temporal de Personas de Negocios Comercio Electroacutenico y Telecomunicaciones Asuntos Ambientales y Laborales Coherencia Regulatoria Otros beneficios
TRANSPACIFIC PARTENERSHIP AGREEMENT (TPP) MEMBER COUNTRIES
TPP is one of the most important trade integration initiatives in the current international scenario Two of the three largest economies in the world are members The agreement will help establish rules for international trade in the Asia Pacific region It has been described by APEC members as a central element for the construction of the Free Trade Area in the Asia Pacific
TRANS PACIFIC PARTNERSHIP (TPP)
38
TPP ndash IMPORTANCE FOR CHILE
Chile will participate in the formulation of rules and standards which will govern international trade during the next century TPP will be a key element to consolidate trade integration between Chile and Asia TPP will position Chile as a business platform to access markets of Latin-America It will enable Chile to enhance coverage of current existing bilateral FTAs
39
Government Procurement Facilitate and encourage the participation of MSMEs as well expand the coverage of existing agreements including rules and actions
Dispute Settlement Mechanism address to the prevention or settlement of disputes between the Parties concerning the interpretation implementation or application of the Agreement
ADDITIONAL PROTOCOL
NEXT STEPShellip
1 Free Movement of Capitals 11 Financial integration - Pensions portability along with the persons - Foreign Investment promotion policy - Financial inclusion 12 Infrastructure investment - Regional Investment Fund 13 Public Finance - Mechanism for Exchange of Fiscal Information - Natural Disasters Joint Risk Management
2 Free Movement of Goods amp Services - Homologation administrative norms - Foreign Trade Single Windows interoperability - Consumer Rights Booklet - MoU on Exchange Information about controversy solutions for consumer protection - Mining projects
3 Free Movement of People Pacific Alliance Visa
4 Cooperation aerospace cooperation operations start of the Joint Cooperation Fund of the Pacific Alliance
Contexto negociacioacuten TPP DIRECON
El TPP es el proceso de negociacioacuten econoacutemica y comercial maacutes importante que se desarrolla en el escenario internacional que surge con el objetivo de generar un proceso de integracioacuten en la regioacuten Asia Paciacutefico Negociacioacuten de 12 paiacuteses entre las cuales se encuentran dos de las tres economiacuteas maacutes grandes del mundo Espacio donde se estaacute definiendo la nueva arquitectura del comercio internacional estableciendo las reglas o estaacutendares que lo regiraacuten durante los proacuteximos antildeos Ha sido definido por los miembros de APEC como un elemento central para la construccioacuten de la Zona de Libre de Comercio en el Asia Paciacutefico (regioacuten con los niveles maacutes altos de dinamismo econoacutemico) Respecto de nuestros acuerdos vigentes con paiacuteses TPP seraacute posible completar su cobertura incluyendo temas como servicios compras puacuteblicas e inversiones Beneficios Especiacuteficos Acceso a mercados Compras Puacuteblicas Normas de origen y Acumulacioacuten Facilitacioacuten de Comercio Servicios Inversiones Entrada Temporal de Personas de Negocios Comercio Electroacutenico y Telecomunicaciones Asuntos Ambientales y Laborales Coherencia Regulatoria Otros beneficios
TRANSPACIFIC PARTENERSHIP AGREEMENT (TPP) MEMBER COUNTRIES
TPP is one of the most important trade integration initiatives in the current international scenario Two of the three largest economies in the world are members The agreement will help establish rules for international trade in the Asia Pacific region It has been described by APEC members as a central element for the construction of the Free Trade Area in the Asia Pacific
TRANS PACIFIC PARTNERSHIP (TPP)
38
TPP ndash IMPORTANCE FOR CHILE
Chile will participate in the formulation of rules and standards which will govern international trade during the next century TPP will be a key element to consolidate trade integration between Chile and Asia TPP will position Chile as a business platform to access markets of Latin-America It will enable Chile to enhance coverage of current existing bilateral FTAs
39
NEXT STEPShellip
1 Free Movement of Capitals 11 Financial integration - Pensions portability along with the persons - Foreign Investment promotion policy - Financial inclusion 12 Infrastructure investment - Regional Investment Fund 13 Public Finance - Mechanism for Exchange of Fiscal Information - Natural Disasters Joint Risk Management
2 Free Movement of Goods amp Services - Homologation administrative norms - Foreign Trade Single Windows interoperability - Consumer Rights Booklet - MoU on Exchange Information about controversy solutions for consumer protection - Mining projects
3 Free Movement of People Pacific Alliance Visa
4 Cooperation aerospace cooperation operations start of the Joint Cooperation Fund of the Pacific Alliance
Contexto negociacioacuten TPP DIRECON
El TPP es el proceso de negociacioacuten econoacutemica y comercial maacutes importante que se desarrolla en el escenario internacional que surge con el objetivo de generar un proceso de integracioacuten en la regioacuten Asia Paciacutefico Negociacioacuten de 12 paiacuteses entre las cuales se encuentran dos de las tres economiacuteas maacutes grandes del mundo Espacio donde se estaacute definiendo la nueva arquitectura del comercio internacional estableciendo las reglas o estaacutendares que lo regiraacuten durante los proacuteximos antildeos Ha sido definido por los miembros de APEC como un elemento central para la construccioacuten de la Zona de Libre de Comercio en el Asia Paciacutefico (regioacuten con los niveles maacutes altos de dinamismo econoacutemico) Respecto de nuestros acuerdos vigentes con paiacuteses TPP seraacute posible completar su cobertura incluyendo temas como servicios compras puacuteblicas e inversiones Beneficios Especiacuteficos Acceso a mercados Compras Puacuteblicas Normas de origen y Acumulacioacuten Facilitacioacuten de Comercio Servicios Inversiones Entrada Temporal de Personas de Negocios Comercio Electroacutenico y Telecomunicaciones Asuntos Ambientales y Laborales Coherencia Regulatoria Otros beneficios
TRANSPACIFIC PARTENERSHIP AGREEMENT (TPP) MEMBER COUNTRIES
TPP is one of the most important trade integration initiatives in the current international scenario Two of the three largest economies in the world are members The agreement will help establish rules for international trade in the Asia Pacific region It has been described by APEC members as a central element for the construction of the Free Trade Area in the Asia Pacific
TRANS PACIFIC PARTNERSHIP (TPP)
38
TPP ndash IMPORTANCE FOR CHILE
Chile will participate in the formulation of rules and standards which will govern international trade during the next century TPP will be a key element to consolidate trade integration between Chile and Asia TPP will position Chile as a business platform to access markets of Latin-America It will enable Chile to enhance coverage of current existing bilateral FTAs
39
Contexto negociacioacuten TPP DIRECON
El TPP es el proceso de negociacioacuten econoacutemica y comercial maacutes importante que se desarrolla en el escenario internacional que surge con el objetivo de generar un proceso de integracioacuten en la regioacuten Asia Paciacutefico Negociacioacuten de 12 paiacuteses entre las cuales se encuentran dos de las tres economiacuteas maacutes grandes del mundo Espacio donde se estaacute definiendo la nueva arquitectura del comercio internacional estableciendo las reglas o estaacutendares que lo regiraacuten durante los proacuteximos antildeos Ha sido definido por los miembros de APEC como un elemento central para la construccioacuten de la Zona de Libre de Comercio en el Asia Paciacutefico (regioacuten con los niveles maacutes altos de dinamismo econoacutemico) Respecto de nuestros acuerdos vigentes con paiacuteses TPP seraacute posible completar su cobertura incluyendo temas como servicios compras puacuteblicas e inversiones Beneficios Especiacuteficos Acceso a mercados Compras Puacuteblicas Normas de origen y Acumulacioacuten Facilitacioacuten de Comercio Servicios Inversiones Entrada Temporal de Personas de Negocios Comercio Electroacutenico y Telecomunicaciones Asuntos Ambientales y Laborales Coherencia Regulatoria Otros beneficios
TRANSPACIFIC PARTENERSHIP AGREEMENT (TPP) MEMBER COUNTRIES
TPP is one of the most important trade integration initiatives in the current international scenario Two of the three largest economies in the world are members The agreement will help establish rules for international trade in the Asia Pacific region It has been described by APEC members as a central element for the construction of the Free Trade Area in the Asia Pacific
TRANS PACIFIC PARTNERSHIP (TPP)
38
TPP ndash IMPORTANCE FOR CHILE
Chile will participate in the formulation of rules and standards which will govern international trade during the next century TPP will be a key element to consolidate trade integration between Chile and Asia TPP will position Chile as a business platform to access markets of Latin-America It will enable Chile to enhance coverage of current existing bilateral FTAs
39
TRANSPACIFIC PARTENERSHIP AGREEMENT (TPP) MEMBER COUNTRIES
TPP is one of the most important trade integration initiatives in the current international scenario Two of the three largest economies in the world are members The agreement will help establish rules for international trade in the Asia Pacific region It has been described by APEC members as a central element for the construction of the Free Trade Area in the Asia Pacific
TRANS PACIFIC PARTNERSHIP (TPP)
38
TPP ndash IMPORTANCE FOR CHILE
Chile will participate in the formulation of rules and standards which will govern international trade during the next century TPP will be a key element to consolidate trade integration between Chile and Asia TPP will position Chile as a business platform to access markets of Latin-America It will enable Chile to enhance coverage of current existing bilateral FTAs
39
TPP is one of the most important trade integration initiatives in the current international scenario Two of the three largest economies in the world are members The agreement will help establish rules for international trade in the Asia Pacific region It has been described by APEC members as a central element for the construction of the Free Trade Area in the Asia Pacific
TRANS PACIFIC PARTNERSHIP (TPP)
38
TPP ndash IMPORTANCE FOR CHILE
Chile will participate in the formulation of rules and standards which will govern international trade during the next century TPP will be a key element to consolidate trade integration between Chile and Asia TPP will position Chile as a business platform to access markets of Latin-America It will enable Chile to enhance coverage of current existing bilateral FTAs
39
TPP ndash IMPORTANCE FOR CHILE
Chile will participate in the formulation of rules and standards which will govern international trade during the next century TPP will be a key element to consolidate trade integration between Chile and Asia TPP will position Chile as a business platform to access markets of Latin-America It will enable Chile to enhance coverage of current existing bilateral FTAs
39
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