São Paulo – Chile intends to sign a trade agreement with the Gulf Cooperation Council (GCC). The government of the South American country, which is going to participate in the Summit of Arab-South American Countries (Aspa), in Doha, Qatar, next week, sent a team to the Arab world in order to discuss the matter. The information was supplied by the executive director at the Chilean-Arab Business Council, Jorge Daccarett, who is going to represent the private sector in Doha. According to him, only preliminary talks are taking place thus far.
According to Daccarett, Chile is interested in exporting foodstuffs, such as salmon and fruit, as well as forestry products, to the Arabs. The greatest advantage, however, of signing a trade agreement with the Gulf, according to him, would be the inclusion of a chapter on investment protection, so that the country may attract Arab capital. The GCC is comprised of Saudi Arabia, Bahrain, Qatar, the United Arab Emirates, Kuwait and Oman.
“Chile is a politically and economically stable country. It has access to the Pacific Ocean, and can be a gateway for the Arabs to reach other markets that Chile sustains agreements with,” said Daccarett. The Chilean president, Michelle Bachelet, is going to attend the Aspa.
Chile posted US$ 340 million in revenues from exports to the Arab world last year, 78% of which went to just two countries: Saudi Arabia and the Emirates. Exports consisted basically of wood, pulp and small quantities of salmon and fruit, and answered to only 0.48% of total foreign sales by Chile. Daccarett believes that there is potential for increasing trade with the region. The Chileans, for instance, do not sell the country’s main export product, copper, to the Arabs.
“Chile has never focused on the Arab countries. Theirs has not been a priority market for Chile, and this is an opportunity for us to start working with the Arab world,” said Daccarett with regard to the Aspa and the business forum that will be held prior to the meeting of heads of state. According to the executive director, the Chilean-Arab Business Council is working to include the Arab countries in the agenda of the Chilean government.
An agreement with the GCC should be helpful in that respect. Some other steps are already being taken as well. The South American country is going to open its first embassy in an Arab country – the United Arab Emirates – in the first half of this year.
Chile has one of the best economic reputations among South American countries. The country has a Gross Domestic Product (GDP) of around US$ 180 billion, and received US$ 17 billion in foreign direct investment in 2008. The figure nearly doubled over a five-year period. The main products of the Chilean industry are copper and other ores, foodstuffs, fishery products, iron and steel, transport equipment, wood, cement and textile products. The industry answers to 50% of the country’s GDP.
*Translated by Gabriel Pomerancblum
