Foreign Trade
2006 was a record year for Chilean trade. Total trade registered a 31% increase over 2005. During 2006, exports of goods and services totaled US $58 billion, an increase of 41%. This figure was somewhat distorted by the skyrocketing price of copper. In 2006, copper exports reached a historical high of US $33.3 billion. Imports totaled US $35 billion, an increase of 17% compared to the previous year. Chile thus recorded a positive trade balance of US $23 billion in 2006.
The main destinations for Chilean exports were the Americas (US $39 billion), Asia (US $27.8 billion) and Europe (US $22.2 billion). Seen as shares of Chile's export markets, 42% of exports went to the Americas, 30% to Asia and 24% to Europe. Within Chile's diversified network of trade relationships, its most important partner remained the United States. Total trade with the U.S. was US $14.8 billion in 2006. Since the U.S.-Chile Free Trade Agreement went into effect on January 1, 2004, U.S.-Chilean trade has increased by 154%. Internal Government of Chile figures show that even when factoring out inflation and the recent high price of copper, bilateral trade between the U.S. and Chile has grown over 60% since then.
Total trade with Europe also grew in 2006, expanding by 42%. The Netherlands and Italy were Chile's main European trading partners. Total trade with Asia also grew significantly at nearly 31%. Trade with Korea and Japan grew significantly, but China remained Chile's most important trading partner in Asia. Chile's total trade with China reached U.S. $8.8 billion in 2006, representing nearly 66% of the value of its trade relationship with Asia.
The growth of exports in 2006 was mainly caused by a strong increase in sales to the United States, the Netherlands, and Japan. These three markets alone accounted for an additional US $5.5 billion worth of Chilean exports. Chilean exports to the United States totaled US $9.3 billion, representing a 37.7% increase compared to 2005 (US $6.7 billion). Exports to the European Union were US $15.4 billion, a 63.7% increased compared to 2005 (US $9.4 billion). Exports to Asia increased from US $15.2 billion in 2005 to US $19.7 billion in 2006, a 29.9% increase.
During 2006, Chile imported US $26 billion from the Americas, representing 54% of total imports, followed by Asia at 22%, and Europe at 16%. Mercosur members were the main suppliers of imports to Chile at US $9.1 billion, followed by the United States with US $5.5 billion and the European Union with US $5.2 billion. From Asia, China was the most important exporter to Chile, with goods valued at US $3.6 billion. Year-on-year growth in imports was especially strong from a number of countries-Ecuador (123.9%), Thailand (72.1%), Korea (52.6%), and China (36.9%).
Chile's overall trade profile has traditionally been dependent upon copper exports. The state-owned firm CODELCO is the world's largest copper-producing company, with recorded copper reserves of 200 years. Chile has made an effort to expand nontraditional exports. The most important non-mineral exports are forestry and wood products, fresh fruit and processed food, fishmeal and seafood, and wine.
Read more about this topic: Economy Of Chile
Famous quotes containing the words foreign and/or trade:
“And when discipline is concerned, the parent who has to make it to the end of an eighteen-hour day—who works at a job and then takes on a second shift with the kids every night—is much more likely to adopt the survivor’s motto: “If it works, I’ll use it.” From this perspective, dads who are even slightly less involved and emphasize firm limits or character- building might as well be talking a foreign language. They just don’t get it.”
—Ron Taffel (20th century)
“The very hirelings of the press, whose trade it is to buoy up the spirits of the people ... have uttered falsehoods so long, they have played off so many tricks, that their budget seems, at last, to be quite empty.”
—William Cobbett (1762–1835)