Federation of Indian Export Organisations



EMBASSY OF INDIA

SANTIAGO

ANNUAL COMMERCIAL REPORT

FOR THE YEAR 2018

|Sl. No. |Contents |Page Nos. |

|1 |Statistical Overview |2-6 |

|2 |Economy Overview |6-15 |

|3 |Summary of Economic Interactions |15-22 |

|4 |Trade Queries received from Chile & India |Annexure - A |

|5 |SPS/TBT Notifications relevant to Chile |Annexure - B |

1. STATISTICAL OVERVIEW

(1) Important Economic Indicators

| |2018 |2018 |

| |Q1 |Q2 |Q3 |Aug |Sep |Oct |Nov |

|GDP (US$ m.) |288,605 |298,057 |298,497 | | | | |

|IMACEC * |4.5 |5.4 |2.8 |3.1 |2.1 |4.2 |3.1 |

|CPI*(YoY) |2.0 |2.2 |2.8 |2.6 |3.1 |2.9 |2.8 |

|CPI (month/month) | | | |0.2 |0.3 |0.4 |0.0 |

IMACEC: Monthly Indicator of Economic Activity

CPI: Consumer Price Index

Source: Central Bank of Chile

(2) Chile’s Global Trade (Jan to Dec’2018)

| |Exports |Imports |Total |Growth % of export |Growth % of import over |

| |(in USD |(in USD |(in USD |over same period in |same period in previous |

| |Million) |Million) |Million) |previous year |year |

|Country’s total |76149.16 |69224.01 |145373.17 |13.97% |15.54% |

|global trade | | | | | |

Source: Customs Office

(a) Top 10 countries of destination of Chile’s exports

| |FOB AMOUNT (MILLION US DOLLARS) |

|Country of destination | |

| |January to December |Share 2018 |Variation 2018/2017 |

| |2017 |2018 | | |

|China |18818.7 |24656.6 |32.4% |31.0% |

|USA |10167.5 |10826.1 |14.2% |6.5% |

|Japan |5976.5 |6714.2 |8.8% |12.3% |

|South Korea |4229.9 |4296.8 |5.6% |1.6% |

|Brazil |3449.3 |3454.1 |4.5% |0.1% |

|Peru |1717.6 |1857.5 |2.4% |8.1% |

|Spain |1701.7 |1692.8 |2.2% |-0.5% |

|Netherlands |1749.8 |1628.2 |2.1% |-7.0% |

|India |1825.3 |1480.6 |1.9% |-18.9% |

|Mexico |1200.4 |1348.1 |1.8% |12.3% |

|TOTAL |68146.9 |76149.2 |100.0% |11.7% |

Source: Customs Office

(b) Top ten countries of origin of Chile’s imports

|Country of origin |CIF AMOUNT (MILLION US DOLLARS) |

| |January – December |Share 2018 |Variation 2018/2017 |

| |2017 |2018 | | |

|China |13381.7 |15436.4 |22.3% |15.4% |

|USA |11008.1 |13309.8 |19.2% |20.9% |

|Brazil |5677.6 |6756.9 |9.8% |19.0% |

|Argentina |2903.1 |3369.3 |4.9% |16.1% |

|Germany |3560.0 |2911.2 |4.2% |13.7% |

|Mexico |2030.7 |2311.6 |3.3% |13.8% |

|Japan |1664.4 |2030.8 |2.9% |22.0% |

|South Korea |1789.5 |1713.9 |2.5% |-4.2% |

|Ecuador |1470.9 |1636.2 |2.4% |11.2% |

|Spain |1373.2 |1626.7 |2.3% |18.5% |

|GRAND TOTAL |59939.4 |69224.0 |100.0% |15.5% |

Source: Customs Office

(c) Chile’s Bilateral trade, continent-wise

|Conti-nent |January-December |Share 2018 |Variation |

| | | |2017/18 |

| |2017 |Total 2017 |2018 |

|1. |26030000 |Copper ores and minerals |17728.94 |23.28% |

|2. |74031100 |Copper cathodes |15620.32 |20.51% |

|3. |47032100 |Chemical wood pulp of coniferous |1627.20 |2.13% |

|4. |47032910 |Chemical wood pulp of eucalyptus |1601.08 |2.10% |

|5. |71081210 |Other unwrought forms of gold |1318.28 |1.73% |

|6. |03044120 |Fresh Atlantic Salmons |1224.00 |1.60% |

|7.- |74020013 |Copper anodes |1124.70 |1.47% |

|8.- |26131010 |Molybdenum concentrate |1111.52 |1.45% |

|9.- |84291110 |Frontal bulldozers |1024.09 |1.34% |

|10.- |74020019 |Other unrefined copper |862.38 |1.13% |

| TOTAL | | |76149.16 |100.00% |

Source: Customs Office

(e) Top 10 items of imports from the world: (Jan to Dec’2018)

|S. No. | |Value (in USD Million) |% Share in total |

| |Commodity |CIF Value |import |

| |HS CODE DESCRIPTION | | |

|1. |27101940 |Gas oil, diesel oil |3285.53 |4.74% |

|2. |27090020 |Petrol Oil |2792.77 |4.03% |

|3. |87032391 |Motor cars exceeding 1500 cc, but less than 3000 cc |2082.07 |3.00% |

|4. |27090010 |Petrol oil |1487.22 |2.14% |

|5. |85171200 |Mobile phones |1419.02 |2.04% |

|6. |87032291 |Motor cars exceeding 1000 cc. |1223.66 |1.76% |

|7. |87042121 |Motor vehicles for transport of goods |1177.68 |1.70% |

|8. |27111100 |Natural gas |1112.03 |1.60% |

|9. |27011220 |Coking coal for thermal use |1035.12 |1.49% |

|10. |87033291 |Motor cars exceeding 1500 cc |558.11 |0.80% |

| | TOTAL | |69224.01 |100.00% |

Source: Customs Office

(3) Bilateral Trade: (Jan to Dec’2018)

| |Exports to India |Imports from India|Total |Growth % of export |Growth % of import over |

| |(in USD |(in USD |(in USD |over same period in |same period in previous |

| |Million) |Million) |Million) |previous year |year |

|Country’s trade with |1480.62 |957.11 |2437.73 |-16.14% |22.89% |

|India | | | | | |

|India’s share in |1.94% |1.38% |1.67% | | |

|percentage (%) | | | | | |

Source: Customs Office

(a) Top 10 items of Exports to India: (Jan to Dec’2018)

|S. No. |Commodity |Value (in USD |% Share in total export|

| | |Million) | |

| | |FOB Value | |

| | | | | |

| |HS Code |Description | | |

|1. |26030000 |Copper ores and concentrates |1058 |75.40% |

|2. |26131010 |Molybdenum concentrate |64 |4.56% |

|3. |47032100 |Chemical wood pulp of coniferous |64 |4.56% |

|4. |08081029 |Apples, Royal Gala variety |46 |3.27% |

|5. |28012000 |Iodine |29 |2.06% |

|6. |08023100 |Walnuts |25 |1.78% |

|7. |74031100 |Copper cathodes |20 |1.42% |

|8. |72044900 |Ferrous waste and scrap |13 |0.92% |

|9. |08105090 |Kiwis |10 |0.71% |

|10. |76020000 |Aluminium waste and scrap |10 |0.71% |

| TOTAL |1403 |100.00% |

Source: Customs Office

(b) Top ten items of imports from India: (Jan to Dec’2018)

|S. No. |Commodity |Value (in USD |% Share in total import|

| | |Million) | |

| | |CIF Value | |

| |HS Code |Description | | |

|1. |87032291 |Motor cars exceeding 1000 cc |244.34 |25.52% |

|2. |30049092 |Other medicaments put up for retail sale |67.86 |7.09% |

|3. |73053100 |Tubes and pipes longitudinally welded |47.17 |4.92% |

|4. |63026014 |Towels |25.09 |2.62% |

|5. |42032900 |Industrial leather gloves |23.23 |2.42% |

|6. |63053200 |Flexible Intermediate Bulk Container |19.99 |1.99% |

|7. |87042121 |Motor vehicles for transport of goods |19.81 |2.06% |

|8. |64039992 |Footwear |17.53 |1.83% |

|9. |87112010 |Motorcycles |11.04 |1.15% |

|10. |62044200 |Women’s or girls’ dresses of cotton |10.12 |1.05% |

| |TOTAL | |957.11 |100.0% |

Source: Customs Office

• (c) Top 5 competitors of India’s top 5 exports:

•

|S. No |Commodity |Five competitors (Countries) [value in US$ million) |

|1 |Motor cars exceeding 1000 cc |China 289.23 |

| |Q1 |Q2 |

| |Q1 |Q2 |Q3 |Q4 | |

|CPI EXCLUDING FOOD GOODS AND ENERGY PRICES |116.24 |117.07 |117.47 |118.10 | |

|CPI EXCLUDING FRUITS & VEGETABLES |117.47 |118.35 |118.90 |119.19 | |

|CPI EXCLUDING FUELS |116.39 |117.22 |117.62 |118.07 | |

Source: Central Bank of Chile

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6. FOREIGN INVESTMENT: A total of US$7,834 million entered the country in the form of foreign investment during the first ten months, according to provisional figures released by the Central Bank. This represented an increase of 25% on the same period last year and included equity for US$3,991 million, which was one of the highest figures in 15 years. Similarly, reinvested profits, at US$7,337 million, were up by 18%, reaching a five-year high.

7. UNEMPLOYMENT: Unemployment Rate in Chile decreased to 6.80 percent in November from 7.10 percent in October of 2018. Unemployment Rate in Chile averaged 8.07 percent from 1986 until 2018, reaching an all-time high of 13.50 percent in February of 1986 and a record low of 5.10 percent in February of 1998.

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MINING SECTOR NEWS

8. CHILEAN LITHIUM EXPORTS CONTINUE TO RISE TO US$ 949 M. IN 2018: Chile’s exports of lithium carbonate reached $949 million in 2018 compared to $686 million the previous year as demand and prices for the key component in electric vehicle batteries continues to rise, the Central Bank of Chile reported. The value of exports of the metal from Chile reached $65.8 million in December, compared to a high of $97 million in August, $71 million in November and $45 million in December 2017. The increase represented a year-on-year rise of 46.2 percent. Top lithium producers Albemarle and SQM have both signed deals in recent years with the Chilean government to increase production in the lithium-rich Salar de Atacama. Global demand for lithium is expected to quadruple by 2025.

9. CORFO TO BUILD CHILE’S FIRST LITHIUM TECH CENTER IN ANTOFAGASTA: The Executive Vice President of the Chilean Corporation for the Promotion of Production (Corfo), Sebastian Sichel, announced (June 2018) that Cofro will build a centre for energy transition and advanced materials for the development of lithium in northern Antofagasta region to give added value to the mineral. He said that the initial annual investment of this center will be about US$12 million and will be developed under three main axes: energy transition, solar energy and development of advanced materials for the lithium industry.

10. CHILE MONTHLY COPPER OUTPUT HIGHEST IN 13 YEARS: Chile's copper production touched 540,720 tonnes in November, its highest level in 13 years, as ore grades and efficient processing favored increased output in the world's top producer of the red metal, the government reported. Copper production rose 7 percent from the same month the previous year, Chile's national statistics agency INE said, putting it at its highest level since December 2005. Total production between January and November reached 5.33 million tonnes, a 6 percent increase over the same period the previous year. Chile is home to the world's top copper miner, Codelco, as well as global miners BHP, Anglo-American, Glencore Plc and Antofagasta Minerals.

11. CHILE’S COCHILCO KEEPS 2019 COPPER FORECAST AT $3.05 PER POUND: Chile's Cochilco state copper commission has maintained its average price prediction of $3.05 per pound for 2019, rising to $3.08 for 2020, amid the continuing U.S.-China trade war and further potential volatility because of Brexit. The commission said it expected demand from China to nudge up 2.5 percent in 2019, along with a 10 percent uptick in demand from India given an uptick in its economic growth and local foundry operations.

12. CHILE COPPER MINES TO TRIPLE USE OF SEA WATER IN 10 YEARS: Chile's copper industry will triple its use of seawater for industrial processes in the next decade, state copper agency Cochilco reported, as global miners in Chile seek alternatives amid growing water shortages. Cochilco said in a report that it expected use of seawater, both desalinated and direct from the ocean, to increase by 230 percent over 2018 levels.

Chile's top miners, including BHP, Anglo American Plc, Glencore Plc and Antofagasta Plc, are primarily concentrated in the northern half of Chile, an arid desert region that is among the driest on earth. Seawater could satisfy 43 percent of the miner's demands by 2029, Cochilco said in the report.

13. CHILE’S COPPER PRODUCTION TO EXCEED 6 MILLION TONNES FOR THE FIRST TIME IN 2019: Copper output in Chile is expected to exceed 6 million tonnes for the first time this year and continue to rise by about 30% over the next 10 years, according to the country’s state copper agency, Cochilco. Production of the red metal could reach a record of 7.25 million tonnes as early as 2025, thanks mainly to new projects and planned expansions to come online this decade, as Chilean miners confront falling ore grades at older mines.

Production from existing, aging mines, will decline by 19% to 4.46 million tonnes annually, but the drop will be offset by new ventures and mine expansions. The growth in production would only be possible if the recent wave of mining investments materializes.

Chile’s state miner and the world’s No. 1 copper producer Codelco recently launched a $39 billion, 10-year investment plan to boost productivity at its mines.

Cochilco's estimates are based on registered mining projects and considers delays and production issues. The report, however, does not include the possibility of strikes or stoppages at the sites.

ENERGY SECTOR NEWS

14. CHILE LAUNCHES CALL FOR $193.4 MILLION SOLAR ENERGY RESEARCH INSTITUTE: Chile’s government-owned Production Development Corporation (CORFO) has published a request for information or expression of interests for the development of a Technological Institute for Solar Energy, Low Emissions Mining and Advanced Lithium Materials and other materials. The Institute will be set up with a mixture of public funding and 30% private investment.

Economic growth organization CORFO said in a statement that during the six-month preparatory phase of the bidding process it expects to receive and evaluate the proposals of all the institutions that want to be part of the initiative.

Proposals will be considered for the three research areas planned for the center – solar energy, low-emission mining and advanced materials associated with lithium and other minerals for electromobility and energy storage.

Among other initiatives supporting PV, CORFO is implementing a Development of Photovoltaic Solar Energy Technologies for Desert Climates and High Radiation program, aimed at developing technologies to respond to desert and high irradiation conditions in areas such as the Atacama Desert. The program supports collaboration between companies and technology centers focusing on applied research in PV systems, and contributes co-financing of up to 70% of the total cost of successful projects – with a maximum of $12 million – via a non-refundable subsidy.

15. RENEWABLE POWER GENERATION EXCEEDS 20% FOR TWO CONSECUTIVE MONTHS: Non-conventional renewable energies (NCRE) continue to gain ground in Chile’s electricity system. Figures for their contribution have risen constantly in the past few years, with peaks of over 40% during several hours of the day and an accumulated average of 17.6% in October 2018. However, the most important data has to do with the milestone that occurred in September and October when, for the first time, the average contribution of renewable to electricity supply exceeded 20% for two consecutive months, reaching 20.8% and 21.8% respectively.

In October 2018, NCRE sources represented a contribution of 1,381 GWh, led by solar plants (8.6%) and wind plants (6.8%), while the contribution of thermal generators dropped, displaced by hydroelectric plants, which accounted for 39% of supply. However, the figure is expected to continue increasing and compliance with the legal annual target of 20% is expected to occur in 2020, five years ahead of schedule.

This forecast reflects the fact that no large conventional energy projects are expected to come on line in the short term. In addition, the government, together with the generators, is promoting decarbonization. In 2019, they will define a timeline for the withdrawal of the thermoelectric plants that exist around the country, making more room for sources of other types.

Along with this, the industry is looking closely at the regulatory decisions that must be taken in the short term when the government begins discussion of key bills for the sector, such as the transmission law, which would begin its approval process in 2019.

Chile has the world’s best solar radiation, with 4,000 hours of sun a year in the north of the country, as well as great wind potential, with farms in operation in the Antofagasta, Coquimbo, Biobío and Los Lagos Regions.

Chile is seeking to boost investment in the electricity sector with a view to diversifying its sources of generation. The goal is to achieve a matrix of which 70% corresponds to sustainable sources by 2050.

16. CLIMATESCOPE 2018: CHILE LEADS INTERNATIONAL RENEWABLE ENERGY RANKING: For the first time, Chile has been chosen as the world leader in renewable energies in the “Climatescope 2018” report, which analyzes policies in this field across 103 countries around the world.

The study was prepared by Bloomberg NEF and highlights the South American country for the implementation of government policies, investment in the generation of clean energy and its commitment to decarbonization.

The survey revealed that Chile ranked 12th in the “opportunities” category, due to the opportunities it offers for “clean energy procurement” while, on “experience”, it ranked 8th due to the investment and development carried out between 2014 and 2017.

“Despite decelerating clean energy, the government remains determined to deal with the complexities generated by high penetration of wind and solar while continuing to reduce power sector emissions and fight climate change,” stated the report.

Last year, Chile took 7th place in the world. Now it is the top scorer, followed by India, Jordan, Brazil and Rwanda. The Climatescope 2018 report analyzes 80 indicators related to energy policy, emissions and technology.

17. FIRST 24/7 SOLAR PLANT TO START OPERATIONS IN CHILE IN 2019: In the middle of the Atacama Desert, northwest of Sierra Gorda, the second highest structure in Chile after Costanera Center is being erected. It is the receiving tower of the future Cerro Dominador solar thermal plant, which will be the largest of its kind in Chile and Latin America.

Unlike conventional photovoltaic power plants, which only function when the sun shines, Cerro Dominador uses a technology that will allow it to operate continuously 24 hours a day. Today, renewable sources account for only 43% of the electricity matrix, but a study by Generadoras de Chile, an association that brings together the country’s main power producers, anticipates that, by 2030, they will account for 75%. The plant’s construction is scheduled to be completed in December next year. At present, it has reached the 20% stage.

Among the key elements that remain to be built are the electricity generating plant, which will be at the center of the complex. This will also include the installation of almost 11,000 mirrors (heliostats) that will reflect solar radiation to the main structure in 360 degrees.

18. CHILE INAUGURATES 82 MW PUNTA SIERRA WIND FARM: Australia’s Pacific Hydro has boosted its plans for a Latin America-wide expansion of renewable energy projects after bringing online its first Chilean wind farm (August 2018). According to Chilean Energy Minister, the 82 MW Punta Sierra project in Ovalle, around 400 km north of capital Santiago, will generate 282 GWh a year from 32 turbines and will provide enough energy for 157,000 homes. The Minister stressed that the Punta Sierra wind farm will contribute to reducing the country’s greenhouse gases, since it will offset 100 thousand tons of CO2 per year, which is equivalent to removing approximately 40 thousand cars of circulation. The project is a joint venture between Australia’s Pacific Hydro and its Chinese parent firm State Power Investment Corporation.

19. CHILE TO BUILD LATIN AMERICA’S LARGEST DESALINATION PLANT IN ATACAMA: The Chilean environmental authorities have approved (Sept 2018) the construction of Latin America’s largest solar powered desalination plant that will be built in the Atacama Region and contemplates the use of photovoltaic energy. The initiative of ENAPAC involves an initial investment of US$500 million and entails construction of a solar-powered plant between Caldera and Copiapó with capacity of 2,630 liters per second, a 100MW photovoltaic plant to power it and a reservoir with capacity for 600,000m3 of treated water.

The Chilean technology company TRENDS Industrial, businessman and CEO of ENAPAC, Rodrigo Silva, and Almar Water Solutions, arm of operations in water infrastructure of the Saudi firm Abdul Latif Jameel Energy & Environmental Services are involved in the project. According to CEO of ENAPAC, the project will be financed by 80% with bank contributions and in a 20% with the company’s own funds. Saudi investors would present about 51% (about US$ 1000 million) in order to control the investment.

20. CHILE INAUGURATES FIRST PHOTOVOLTAIC GENERATION PLANT IN EASTER ISLAND: The Tama te Ra’a plant, composed by 400 solar panels that makes a total of 100 kw was inaugurated (Nov 2018) by the Chilean Energy Minister Susana Jiménez. The plant replaces the 8% of diesel consumption of the current generation of the island. The plant, constructed by the company Acciona and financed through the law of donations, is operated by workers of the company Sasipa.

PUBLIC WORKS SECTOR NEWS

21. SPANISH FIRM TO BUILD ROAD, BRIDGE IN CHILE’S ATACAMA DESERT: As per media report (July 2018), the Spanish infrastructure specialist Ferrovial Agroman has won a €270 million contract to build the Rutas del Loa road project, in Chile’s Atacama region. The project involves widening a 111km stretch of Route 25 from a two to a four-lane road, and the construction of a 25km bypass around the town of Calama, linking several roads. The focal feature of the project is a 345m viaduct over the River Loa. The completed infrastructure will be managed by Intervial Chile under a 40-year concession. The company will also erect a new 14-story building for the University of Chile for €49 million. [Ferrovial’s construction subsidiary is established in Chile since 1996 and has participated in projects such as the Santiago Metro and played a leading role in building Santiago Metro line 6 (was inaugurated in December 2017); built 3,000 meters of tunnel and seven of the ten stations. It is currently building the Universidad de Chile station, on line 3, and new accesses to the Tobalaba station, on line 4.]

FISHERIES SECTOR NEWS

22. AGROSUPER TO BUY SALMON PRODUCER AQUACHILE FOR $ 850 MILLION: Agrosuper, one of Chile’s top food producers, has reported (August 2018) the purchase of 67% of the salmon company Empresas AquaChile SA to its majority shareholders, in addition to the launch of a Public Offer of Shares (OPA) to acquire up to 100% of the company. AquaChile, one of Chile’s largest salmon producers, had recently struck a $255 million deal to purchase two smaller Chilean fish farming operations, boosting the company’s access to the Magallanes region of Patagonia, a prime area of cold water ideal for salmon rearing in Chile.

TECHNOLOGY SECTOR NEWS

23. GOOGLE EXPANDS CHILE DATA CENTRE WITH US$ 140 MILLION INVESTMENT: As per media report (Sept 2018), the U.S. tech giant – Google – will invest US$ 140 million to expand its data centre in Quilicura, near Santiago. This is the Google’s sole data centre in Latin America which is operational from 2015. Google had spent US$150 million to build the centre in 2015. As per media report, with the new investment, the size of the data centre will be tripled to 11.2 hectares (from 27.7 acres) and will create more than 1,000 new jobs in the construction process and 120 new permanent jobs. The Chilean President said that Chile will be on the forefront of what he called ‘the current of history’ in the technology revolution and the fourth industrial revolution is knocking at our door. The Google’s General Manager in Chile said ‘This new stage reinforces the promise Google made to the region to ensure that large and small companies, non-profit organizations, students, educators and all users can access key tools in a reliable and rapid way’.

SUMMARY OF ECONOMIC INTERACTIONS

I. EXTERNAL

ARGENTINA

24. EXPORT OF NATURAL GAS TO CHILE: Argentina will begin exporting natural gas to neighboring Chile before the end of 2018, the energy ministers of both countries announced in June, 2018 during the G-20 meeting of Energy Ministers.

Chilean companies are in talks to sign import deals and the first flow of gas across the Andes could come later this year, said Chile energy minister Susana Jimenez. The gas could be used for electricity generation, replacing imports from elsewhere, or to heat homes in areas where families still depend on wood, a source of pollution in the center-south region, Jimenez said. Chile produces little hydrocarbons of its own.

25. ARGENTINA AND CHILE SIGNED AGREEMENT ON TOURISM: The Vice Minister of Tourism of Chile, Mónica Zalaquett and the Tourism Minister of Argentina, Gustavo Santos, signed an agreement to promote Chile and Argentina jointly in faraway destinations, such as Asian countries. The initiative considers “actions in matters of public-private collaboration, with the clear objective of promoting the strengthening of bilateral tourist relations.”

The document contemplates advancing in the integrated management of border crossings, with the objective of facilitating the transit of tourists between the two countries. It will also seek the implementation of joint value visas, to enable a visa system that allows foreigners from third countries, after having obtained an Argentine or Chilean visa, to visit both destinations indistinctly. The two countries also agreed to promote the development of integrated tourist circuits, with special emphasis on the Northern and Patagonia zones.

BRAZIL

26. CHILE AND BRAZIL SIGNED FREE TRADE AGREEMENT: Chile and Brazil have signed (Nov 2018) a free trade agreement that scraps red tape and eliminates tariffs from 17 key areas, including service sectors and electronics, and wipes away additional cell phone charges between the two countries. Trade between the two countries reached US$ 7.2 billion dollars between January and September 2018, an increase of 13% over the previous year.

The agreement, which was negotiated in under 6 months, ‘unites the Mercosur and Pacific Alliance’, the Brazilian President said during the signing ceremony.

[Chile is a member of the Pacific Alliance, which also includes Mexico, Colombia and Peru. Brazil, together with Argentina, leads Mercosur, which also includes Uruguay and Paraguay.]

CHINA

27. CHILEAN SENATE APPROVES DEEPENING OF FREE TRADE AGREEMENT WITH CHINA: The Chilean Senate approved (Oct 2018) the protocol of deepening the Free Trade Agreement with China which complements the Free Trade Agreement between the two countries that entered into force in 2006. With this instrument, about 97.2% of Chilean merchandise has been able to enter the Chinese market free of tariffs, representing a total of 7,336 Chilean products, equivalent to 99% of the value of Chilean exports to China.

The new protocol included the renegotiation of six chapters: access to markets, rules of origin, customs procedures and trade facilitation, competition policy, economic and technical cooperation, as well as trade in services; added to two new titles on electronic commerce, and environment and commerce. Trade facilitation provisions were incorporated with a new institutional framework.

The Chilean Foreign Minister said that the relationship with China is key not only because it is huge market but also it is a key player in the Asia Pacific area, a commercial nerve center and with growing global influence.

28. CHILE JOINS CHINA’S BELT AND ROAD INITIATIVE: A Memorandum of Understanding between Chile and China in the framework of the Belt and Road initiative was signed (Nov 2018) by the Chilean Foreign Minister, Robert Ampuero and the President of the National Commission of Development and Reformation, He Lifeng of China. After signing the agreement, Chilean Foreign Minister said ‘we are happy because this initiative will allow us to enter a new stage of collaboration between both countries’. The Chilean FM also said that ‘the agreement advertises Chile as a destination for Chinese investment and make the country ‘landing point for investments in Latin America’.

[China is Chile’s top trading partner. Commercial ties between the two nations have been accelerating, with a deal slashing customs controls for Chilean products shipped to China was also signed.]

JAPAN

29. Chile’s President Michelle Bachelet met Japanese Prime Minister, Shinzo Abe in February 2018 to discuss the Trans-Pacific Partnership, boost trade relations and fight protectionism.

The two leaders highlighted the importance of cooperating closely for early enforcement of the new Trans-Pacific Partnership deal and agreed to move quickly forward to obtain Parliament approval.

Both the countries signed the Japan-Chile Partnership Program (JCPP 2030), which promotes benefits for Latin America and the Caribbean on food security, sustainable agriculture, renewable energies, climate change, etc. Japan-Chile Bilateral trade exceeded US$8.395 billion last year.

PAKISTAN

30. EXPO PAKISTAN: Pakistan held its largest trade event (Expo Pakistan) in Chile, a major economy of South America from May 26-29, 2018, but could not attract sufficient number of visitors. The Trade Development Authority of Pakistan (TDAP) had been preparing for a Single Country Exhibition at Estación Mapocho, Santiago, in collaboration with Ministry of Commerce & Textile (Commerce Division) and Embassy of Pakistan, Buenos Aires (Argentina).

The purpose of this first-of-its-kind event, which cost the country over PKR30 million (447,300 US$) , was to take ‘Emerging Pakistan’ forward and explore the Latin American markets. Pakistan’s imports from South American countries continue to outweigh its exports to the region, with a deficit of over $103 million registered during July-December last year. Pakistan’s trade volume with the South American region had hovered around $600 million since FY2014-15, except FY2015-16 when the volume was recorded at $769.725 million.

II. MULTILATERAL

31. SIGNING OF FREE TRADE AGREEMENT BY TRADE MINISTERS FROM 11 PACIFIC RIM COUNTRIES: Trade ministers from 11 Pacific Rim countries signed a sweeping free trade agreement in March, 2018 in Chile to streamline trade and slash tariffs. The new Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), also known as TPP-11, was the result of negotiations that took place since 2016 involving 11 countries: Australia, Brunei Darussalam, Canada, Chile, Malaysia, Mexico, Japan, New Zealand, Peru, Singapore and Vietnam.

Trump had withdrawn the U.S. from the Trans-Pacific Partnership last year, causing fears that it would not prosper without its most influential country. But the remaining 11 members pressed ahead, saying they were showing resolve against protectionism through global trade.

The renegotiated pact signed in Santiago was also renamed the Comprehensive and Progressive Trans-Pacific Partnership, or CPTPP. The original TPP would have represented roughly 40% of the world’s economic output. Without the U.S. which was taken out of the deal by President Donald Trump, the new pact will cover just 13% of global GDP, but still include around 500 million people.

III. BILATERAL (INDIA-CHILE)

32. INDIA SOURCING FAIR (EXPO INDIA): India Trade Promotion Organisation (ITPO) and the Embassy of India organized a 9-day long Expo India 2018 at Estacion Mapocho Cultural Centre, Santiago from March 2-10, 2018. Around 110 Indian companies exhibited diverse products including home furnishings, garments, accessories, handicrafts, furniture, fashion jewellery, spices, etc. and Indian cuisine and culture was also showcased. . The event saw around 50,000 people, and most of the items being offered during the fair were sold out.

33. CII INDIA-LAC CONCLAVE 2018: The 8th edition of CII India-Latin America and Caribbean Conclave was organized in Santiago, Chile from 1-2 October 2018 in partnership with United Nations Economic Commission for Latin America and Caribbean – UNECLAC, Ministry of External Affairs-MEA and Ministry of Commerce and Industry-MoCI, Government of India. CII also partnered with Inter-American Development Bank-IADB, Latin American Development Bank-CAF, Export Import (EXIM) Bank of India and Federation of Chilean Industry – SOFOFA.

The Conclave was well attended by more than 250 participants from the LAC Region and 30 Indian companies. The Indian delegation was led by Gen. (Dr.) VK Singh (Rtd.), Minister of State for External Affairs (MoS EA), Government of India. Ministers from a few LAC countries accompanied by business delegation from their respective countries also participated in the Conclave. Investment promotion agencies and business chambers from Brazil and Argentina also brought in specific business delegations to the Conclave.

The following 4 MoUs were signed, by CII’s President, during the India-LAC Conclave to strengthen bilateral relationship:

1. Federation of Chilean Industry – SOFOFA

2. Argentina Investment and Trade Promotion Agency – Invest Argentina

3. Export and Investment Promotion Agency of El Salvador – PROESA

4. Parana Investment and Trade Promotion Agency – APD

A Plenary session on opportunities and challenges in trade and investment between India and LAC region and a plenary session on the role of regional groups such as MERCOSUR, Pacific Alliance, CARICOM, etc. were successfully organized where panelists shared their views, opportunities in their respective countries and the LAC region. These sessions made the Conclave a two-way event where both the India and the LAC countries were able to present their views and business opportunities to the participants.

Break-out sessions on focus sectors like healthcare and pharmaceuticals, automobile and auto-components, agro-industry, food processing and chemicals, IT & services, power and energy (including Renewable Energy), infrastructure and engineering were also organized simultaneously where industry experts from both India and LAC countries shared their views and opportunities available in each sector in their respective countries.

On the sidelines of the India-LAC Conclave, B2B meetings between buyers and sellers were organized. In total, more than 300 meetings were set up between the 75 registered participants with the help of an online portal, indialac. specially created for this Conclave. Meetings between the Ministers, Vice-Ministers, President/Senior Executives of chambers of commerce and investment promotion agencies, bureaucrats, high ranked diplomats were also organized on the sidelines of the event.

Members of the India Business Forum for Latin America and the Caribbean (IBF for LAC) Region met on the morning of 2nd October 2018. Gen. (Dr.) VK Singh, Minister of State for External Affairs (MoS EA), H.E. Anita Nayar, Ambassador of India to Chile and Mr. Rakesh Bharti Mittal, President of CII addressed the IBF session. Opportunities, challenges, tariff and non-tariff barriers for Indian companies in the LAC region were discussed in the meeting. CII Indian Business Forum, a membership-based forum, is an exclusive group of corporate members primarily Indian companies with existing or planned operations in the respective region. It was launched in November 2016 in Sao Paulo to cater to the growing needs and demands of Indian industry in the LAC region to develop deeper ties.

On 1st October 2018, a gala dinner and a cultural event was organized together with the Embassy of India to commemorate the 150th anniversary of Mahatma Gandhi. During the occasion Mr. Milton Juica, former President of the Supreme Court of Chile was conferred with the Gandhi Award by Gen. (Dr.) VK Singh, MoS EA, India. Mr. Luis Bates, former Minister of Justice, Chile also addressed the gathering on the Gandhi Award instituted by San Sebastian University.

34. VISIT OF MINISTER OF STATE FOR EXTERNAL AFFAIRS: Gen. (Dr.) V.K. Singh (Retd), Minister of State for External Affairs visited Chile from 30th September to 3rd October, 2018 to participate in the INDIA-LAC BUSINESS CONCLAVE organized by Confederation of Indian Industry from 1st-2nd October, 2018 at Hotel Ritz Carlton, Santiago.

During his visit, the Minister had a very productive meeting with the Minister of Health of Chile, Mr. Emilio Santelices, where he handed over a sample of a mobile diagnostics lab and mentioned other products and technologies that India could provide at relatively low cost. He also briefed the Minister about AYUSHMAN BHARAT, the government-backed health scheme launched by Prime Minister Modi.

On the sidelines of the Conclave, he had bilateral meetings with the Minister of Foreign Affairs of El Salvador, Mr. Carlos Alferdo Castaneda Magana; the Minister of Development, Industry and Commerce of Nicaragua, Mr. Orlando Salvador Solorzano Delgadillo, and with the Vice-Minister of Foreign Trade of Venezuela, Antonella M. Balbi.

MoS also attended the inaugural Session of the India-LAC Business Conclave; a flower laying ceremony at Mahatma Gandhi statue with Mayor of Providencia (on the ocassion of the 150th Birth Anniversary of Mahatma Gandhi); and the Conclave’s Gala Dinner.

The Minister visited Evalueserve, a global professional services provider offering research, analytics, and data management services, based in Vina del Mar and had interactions with Indian emplyees. Evalueserve currently has 500 emplyees; of which about 65 from India.

35. VISIT OF MEMBER (STAFF) RAILWAY BOARD: Mr. S. N. Agrawal, Member (Staff), Railway Board accompanied the Minister of State for External Affairs to participate in the India-LAC Business Conclave organized by Confederation of Indian Industry from 1st-2nd October, 2018 at Hotel Ritz Carlton, Santiago. Mr. Agrawal had a productive meeting with the Vice-Minister of Transport where he discussed cooperation in forthcoming tenders for railway, trains, electric buses, metro projects etc.

36. INDIA TOUR BY PROCHILE AND ASOEX: The India office of ProChile and the Chilean Fresh Fruits Association (ASOEX) undertook a tour to India, seeking to position themselves as suppliers of quality fresh fruits from Chile, the world’s largest exporter of grapes, blueberries and plums. In July 2018, the above two agencies and a group of Indian importers had launched the first campaign to promote trade and consumption of Chilean Kiwi in the Indian market. It was the first time that a Chilean fruit was announced on the largest e-commerce platform in India, Big Basket. According to figures from ASOEX, Chile currently exports to India apples, kiwis, grapes, pears, plums, cherries, among others. In the 2016-2017 more than 29,000 tons of fresh Chilean fruit were sent to India, out of which 82.1% was apples.

Exports of fresh Chilean fruit to India reached $ 24.8 million in 2017, while in the first half of 2018, these shipments exceeded $ 48.3 million, states data from Commercial Information of DIRECON-ProChile, and Chilean Central Bank.

37. VISIT OF CHILEAN MINISTER OF AGRICULTURE TO INDIA: A 4-member delegation led by the Chilean Minister of Agriculture, Antonio Walker visited India from 29th - 30th October 2018. The delegation visited ICAR -Indian Agricultural Research Institute, New Delhi and met the Indian Agricultural Research Institute and later met with the Indian Agriculture Secretary, Sanjay Agarwal, where they held detailed dissensions on the status of the entry of Chilean products such as avocadoes, blueberries and walnuts into Indian market.

The delegation consisted of the Director of the Agricultural & Livestock Service (SAG), Mr. Horacio Borquez; the Director of the Office of Agricultural Studies & Policies (ODEPA), Mr. Maria Emilia Undurraga, and the Mr. Jose Miguel Rodriguez, Chief of the International Affairs of ODEPA.

38. COUNCIL FOR LEATHER EXPORTS: A 22-member delegation of leather and leather goods manufacturers and exporters from India organized by the Council for Leather Exports (CLE), Chennai, and led by Mr. Vijay Kumar, Assistant Director of the Council, visited Santiago, Chile from 22nd - 24th October 2018. The objective was to promote Indian leather products, highlight new fashion trends in the leather industry and create awareness about Brand India in Chile. The visit was organised in collaboration with the Santiago Chamber of Commerce and the Embassy of India in Chile. to hold a Buyer Seller Meet. The delegation also included Mr. Asif Eqbal Khan, Export Promotion Officer, New Delhi. The visit was organized in collaboration with the Santiago Chamber of Commerce and the Embassy. The delegation exhibited samples of their products at a successful buyer-seller meet at the Crown Plaza Hotel in Santiago.

39. VISIT TO OPERATION CENTRE & COPPER MINES: The Mission visited the Operations Centre of the El Teniente Mine in the Sewell mining city (declared as World Heritage site by UNESCO in 2006) on an invitation extended to all Santiago-based foreign Missions by Mr. Diego Schalper, Deputy for District 15 of the Region of O' Higgins and General Manager of CODELCO - National Corporation of Copper, El Teniente Division in order to showcase its facility. The El Teniente Copper Mine contributes to 19% of the region's GDP. It is the largest underground copper deposit in the world, located in the Region of O'Higgins. During 2017, El Teniente reached a production of around 464,328 metric tons of fine copper.

40. EXCLUSIVE INDIA PRODUCT SHOW - FESTIVAL DE LA INDIA: The PHD Chamber of Commerce & Industry in close association with Embassy of India, Santiago, Chile & CAMINDIA – Chilean Indian Chamber of Commerce, organized the Exclusive India Product Show–FESTIVAL DE LA INDIA from 16 - 21 December 2018 at SALA Omnium, Las Condes, Santiago, Chile. The inaugural ceremony was led by Ambassador of India, Ms. Anita Nayar and the President of the Indo-Chilean Chamber of Commerce, Mr. Jorge Guerrero.

The Festival De La India was Multi sector in nature and was spread over 800 sqm of area with the participation of 46 companies from India showcasing products and services such as: Gifts & Handicrafts, Home Furnishing, Textile & Garments, Imitation Jewellery, Cosmetics, Pharma , Footwear, Astrology.

Apart from business and commerce the event also focused on portraying the rich India culture heritage through cultural events, food &, Bollywood festival etc. all adding to “Festival De La India” Experience.

41. A list of trade queries received from Chile and India is attached at Annexure – A.

42. A list of SPS/TBT Notifications relevant to Chile is attached at Annexure – B.

For more information, contact Mr. Awadh Kumar, Attache (Commerce), Embassy of India, Santiago, Chile at com.santiago@.in

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