Why Chile?

Chile Is One of the Best Countries in the World to Do Business

Source: InvestChile

           When it comes to foreign direct investment, economic freedom, legal security, and growth potential, Chile is the country to trust. Thanks to its political and economic stability, the World Economic Forum reveres Chile as the most competitive economy in South America and one of the best nations for foreign direct investment.

            Chile also has the highest GDP per capita in South America at 26,317 USD PPP in 2019. In addition, the 2020 World Index has deemed Chile’s economy the 15th freest economy in the world with a score of 76.8. This data proves just how competitive Chile behaves within the global market, and has bumped Chile to become key leaders in South America. The OECD, Organization for Economic Cooperation and Development, has ranked Chile as the number one economy in South America. This country is also a leader of new technology startup companies, renewable energy investment, and solar generation. Santiago, the capital city, is also attractive for entrepreneurs and investors alike, as it is ranked #3 in Global Quality of Life, competitiveness, and location (Mercer, 2019).

            In addition, Chile’s IT industry has been especially successful, and the Global Innovation Index has ranked the country #1 in Latin America for innovation. Chile also is the world leader in electronic invoicing, and is often times referred to as “Chilecon Valley”. For these reasons along with the world’s leading global accelerator program, Start-Up Chile, the country has worked with more than 1,400 startups, invested more than $40 million in entrepreneurial projects, and has become a hub for technology startups.

            The International Logistics Performance Index, provided by the World Bank, ranks countries on six different dimensions of trade: efficiency of the clearance process by border control agencies, quality of trade and transport related infrastructure, ease of arranging competitively priced shipments, competence and quality of logistics services, ability to track and trace consignments, and timeliness of shipments. As of 2018, Chile was ranked #34 out of the 160 countries compared, scoring considerably high in both the infrastructure and international shipment sectors specifically. These healthy and competitive scores allow Chile to be ranked within the top 50 countries to perform business out of the 160 countries analyzed.

            Chile has many free trade agreements which also make it a very opportunistic place for business ventures. Two of these agreements in particular have contributed to Chile’s international relationships: the Pacific Alliance and Chile Free Trade Agreement (CLFTA.) Formed in 2011, the Pacific Alliance is a Latin American trade bloc that allows Chile to trade freely with Colombia, Mexico, and Peru. This alliance has encouraged the promotion of growth and economic stability in Chile over the years. The CLFT, is the bilateral agreement that the U.S. shares with Chile, which was created in 2004. This has greatly benefited the U.S. as it promoted duty-free trade between the U.S. and Chile on all products. In turn, the U.S. reported a trade surplus of $4.0 billion with Chile in 2018.

            As the world’s number one exporter in table grapes and blueberries, Chile provides a rich landscape that is conducive for the growth and exportation of a variety of fresh produce. Chile’s growth season runs counter to the U.S. season, so Chile can supply fresh summer fruit during U.S. winters. In addition, Chile’s natural environment, the Andes mountains, Atacama desert, Pacific Ocean and Patagonian glaciers create natural barriers that protect the land from insects, disease, and climate damage. Chile’s wide range of climates and rich, nourishing soils are ideal for the growth of dozens of food sectors, such as fish, seafood, fresh fruit, wine, dairy, and meat products. Chile benefits from having a wonderfully clean source of water with large reserves of ice off its Southern region.

Please refer to the links below for additional data and background as to why Chile should be your next business venture.