P4 are off to NZ

P4 take Chilean companies to NZ

Fundación Chile and the Chilean Economic Development Agency (CORFO) are providing the platform for 20 Chilean companies to visit and meet New Zealand counterparts from 18 - 25 November. The selected Chilean companies are from various business sectors; the majority being from the agricultural and tourism sectors.

These companies are seeking different types of engagement with New Zealand companies; Individual profiles and further information is available in Company Profiles.

The P4 Trade Mission 2006 forms another step in the consolidation of the P4 Strategic Economic Partnership between Chile and New Zealand.

Accompanying the Mission will be members of Fundacion Chile, New Zealand Trade & Enterprise Santiago, the deputy head of CORFO's Investment Promotion Division, and the Chief Executive Officer of CORFO, Carlos Alvarez.

The President of Chile, Michelle Bachelet and Prime Minister Helen Clark will also participate briefly in the mission signing a development agreement between the two countries.

Renewable Energies in Chile: Wrap Up

The Renewable Energies Investors Meeting P4 held in October was a big event & a big success.

• 70 foreign companies attended
• 17 different countries were represented
• 550 attended the first day of the seminar
• 510 attended the 2nd day
• 400+ business meetings were held

So far we know of 4 projects that are likely to have secured financing as a result of the event - we are now preparing an official follow-up report and work plan for the next 12 months before the 2nd Investors Meeting in November 2007.

Renewable Energies in Chile

P4 are currently organizing Chile's First International Investors Meeting for Renewable Energy that will be held at the Crowne Plaza on the 5 & 6th of October.
The event will be opened by the Chilean President Michelle Bachelet, and will host over 50 investors from 15 countries. These investors will be introduced to an investment portfolio from 45 local project developers.
CORFO, the Chilean Economic Development Agency promoter of the event, has assisted these renewable energy projects during their pre-investment study phases and with event proposes to assist in pairing developers with investors.
P4 are providing organizational, logistical, and matchmaking services for the event that will be attended by over 250 people.

Chile grew 4.9% in the first semester of this year

The Chilean economy grew 4.9% during the first semester of this year, according to figures published today by the Central Bank. During the second semester, Chile reportedly increased 4.5%. Greatest movements were observed in the communications, electricity, gas and water sectors.

Chilean Senate Approves P4 Agreement

Good news ... on Tuesday, August 8, the Chilean Senate unanimously approved the P4 Agreement.

The Agreement arrived to the Senate with favourable reports from the Foreign Relations, Finance and Agriculture Commissions. This Senate approval means that the Agreement is now in conditions to be promulgated as a Law of the Republic and, finally, enter into force upon its publication in Chile’s Official Gazette (anticipated to happen in October).

The Agreement covers trade, economic, institutional and cooperation aspects, and also contemplates increasing exportations towards third markets through joint ventures and technology exchange.

Although 80% of Chilean goods will be able to enter into New Zealand with zero tariffs upon entry into force of the Agreement, the Agreement establishes special safeguards as regards certain dairy products – current maintenance of the 6% flat tariff and then the proportional decrease of said tariff over 12 years.

The P4 Agreement involves Asia Pacific and Latin America and provides an important platform for other APEC nations to accede to the Agreement.

Interestingly, one day later on August 9, Chile approved its Free Trade Agreement with China.

Forging ahead with Environmental Collaboration under the framework of P4: Chile and NZ

A delegation from New Zealand's Ministry for the Environment is scheduled to visit Chile this week to discuss how Chile and New Zealand can work cooperatively in specific environmental areas of mutual interest and benefit.

This could include such activities as collaborative research or exchanges of environmental/policy experts or technical information.

For Chile, such a visit comes at a poignant moment as Chile begins to consider how best to implement the commitment given by recently elected President Michelle Bachelet - to create a Ministry for the Environment in Chile.

In political terms, the visit has been initiated in the wake of the signing of the P4 Agreement, which includes a legally binding side agreement on environmental cooperation, that is expected to be ratified by Chile shortly.

The full text of the P4 Agreement and the Environmental Cooperation Agreement can be found in Pifor's library.

Opportunities Abound in Chile

We thought it would be interesting for our readers to access the Media Release written by Derek Fairweather of the CEO Waikato Innovation Park upon his return from the P4 Mission to Chile.

Part of the extract published on the site of Innovation Waikato follows:

"Having just returned from a New Zealand Trade and Enterprise (NZTE) trade mission to Chile, I am incredibly enthusiastic about the business prospects emerging in that country due to the signing of the P4 trade agreement between New Zealand, Chile, Singapore and Brunei Darussalam. Waikato companies, in particular, are sitting in a prime position to prosper from this pact. This is because the agricultural-based industries that drive our regional – and national - economy are the same ones driving the Chilean nation.

Just look at a comparison between the countries’ Food Industries:
• Chile’s Food industry represents 10.3% of the country’s GDP – in New Zealand it’s 11.4%.
• In 2004, Chile’s Food exports were $US7 billion - in New Zealand they were $US6.3 billion.
• In terms of Food exports, Chile is ranked 17th in the world – New Zealand ranks 18th.

So, why do these similarities represent opportunity for Waikato businesses?

Because, Chile is on the fast track toward becoming a global food power by 2010 and requires agri-technology expertise - such as exists in the Waikato - to fuel this growth. To help local companies gain entry into this lucrative market, the Waikato Innovation Park has completed an NZTE-funded study to identify market opportunities that will foster collaboration between the New Zealand and Chilean private sectors. Through this study, companies shared the barriers they faced while doing business in Chile. Based on this feedback, the Waikato Innovation Park identified five projects that are being considered for funding which will ultimately be reliant on commercial support:
1. Developing a ‘Chilean Awareness Programme’ focused on understanding business practices.
2. Establishing a ‘sister’ Innovation Park in the 10th Region, Chile as a focus point for New Zealand technology to be introduced into Chile.
3. Establishing a shared-office facility near the Santiago International Airport for New Zealand businesses to utilise while in the country.
4. Creating a demonstration farm in Chile to showcase New Zealand agri-technologies.
5. Developing a training school where New Zealand companies can teach Chilean businesses the technical and management skills required to assimilate new technology."

Minister Jim Anderton emphasizes Joint Venture Opportunity for New Zealand and Chile

New Zealand Minister of Agriculture, Fishing, Forestry and Biosecurity, Jim Anderton, on his recent visit to Chile considers that engaging in joint ventures to enter third markets is the meaning of the P4 Agreement for small countries and exporters, such as Chile and New Zealand.

Below is a free translation of extracts of Minister Anderton’s interview to Sabine Drysdale of Revista Campo, El Mercurio.

Chile is very close to ratifying the Transpacific Strategic Agreement of Economic Partnership Agreement, P4, that includes New Zealand, Singapore and Brunei. Anderton considers that once the Agreement has been approved by Congress, it will open innumerous business opportunities between Chile and New Zealand. Anderton is emphatic that the Agreement will not only broaden the possibility of commercial trade between both countries, but what is more interesting in the opportunity to form joint ventures between Chilean and New Zealand companies to enter third markets.

- Do you believe that P4 will be ratified by the Chilean Parliament?

Yes, I believe it is very likely. The ministers with whom I have spoken have much confidence that it will be. And I believe that ratification will be very quick.

- How will P4 benefit Chile?

A FTA is not a magic wand. It opens opportunities, but people have to seek and seize these opportunities. FTA’s are as good as the creativity of the countries that invest in them. So, if NZ and Chilean exporters don’t make an effort, not much will happen. If we make an effort, we are going to see interesting returns. As once you remove the trade barriers, the good businesspeople are going to take advantage. Inevitably, companies with strategic plans are those that will benefit from these opportunities. Those companies who are not interested in the future, will not concern themselves and that means they won’t have much future.

- In what areas or products, does Chile have opportunities?

Chile is a little like New Zealand. We have the same profile, except for copper. We have an agri-food base that comes from our land and sea resources. To an extent that makes us competitors and that may be one of the concerns among Chilean companies, especially in the dairy industry. What we see is an intelligent appreciation of possible competition, but also of the opportunities that can be taken. One sees Fonterra, for example, working together with the Chilean dairy industry to expand business and production, for the benefit of both, Fonterra and Chile.

The New Zealand dairy industry has developed operations in Australia, United States, in China and in many countries of the world, where they process raw materials from that country and increase their expertise and production for the benefit of that country, at the same time as Fonterra benefits. This is not a one way street. Nor is it exploiting a country. Because if that were so, it would not work well. When there is a mutual benefit, the commitment of both parties’ increases…I don’t believe that the reputation of Fonterra in Chile is that it has robbed the local dairy industry, but that it has worked together with it.

- And what about the forestry industry?

In forestry, Chile has much to teach New Zealanders. A large percentage of our wood is exported in log form and processed at its destination. Chile, on the contrary, export little logged wood and process all its production. The manner in which Chile has achieved this, in so far as it has overcome the barrier of raw material, that we still have, is something that can be taught. The majority of New Zealand constructions are done on the basis of wood, as we have a large domestic market and we export between 30 and 40% of our wood. Chile can teach us much about marketing of commercial strategies, of processing.

- How can we transform this into business?

I believe that the big problem of exportations is the development of markets and how to access them. It may be that one country has access to a market, but doesn’t have the products to satisfy it. New Zealand has Radiata Pine plantations and much Douglas Fur, in exchange Chile has hardly any Douglas Fur and much eucalyptus. So, you can make a mix. And when a market is too big for one country, such is the case of China, if both countries are in development; we can send a much broader variety of wood products and a much greater volume.

- Exporting from New Zealand?

- It may be between both countries. If you look at Zespri (entity that produces, sells and markets kiwis), they have licenses to cultivate gold kiwi in many parts of the world. And what that does is open the market for fruit for 12 months of the year. Joint ventures are very important. We are small countries.

- Chile wishes to convert itself into a food power. Do you believe that P4 is the platform to achieve it?

I’m not sure what a food-power means. You’re the first exporters of salmon, a global force. We are number one in various products, such as milk and meat. But we remain small in the global market. It may be that we are number one in dairy exports, but we hardly have 1 – 2% of the global market. Because the world produces much milk and they are many self-sufficient countries. Only some export, Chile is one of those. But a company such as Nestle is working in Chile to develop its industry. If we look at another country such as Nestlé, they come from Europe, but they are in all parts of the world and they look for joint ventures in all countries. It is a company that comes from a European country but has global reach, thereby benefiting from the development of the dairy industry in diverse countries. If that is done with considerable mutual benefit, then there is nothing wrong. Countries benefit from global market access which Nestle has and which small countries could never have.

- Do you see New Zealand investments in Chile, outside of Fonterra?

Yes, I hope so. Equally I hope that Chile invests in New Zealand. There is a mutual interest.

- Are there plans to invite more countries to P4?

- I have just discussed that with Minister of Foreign Relations, Alejandro Foxley and we believe that there is potential for Peru to join. Chile has intentions that it enter, I don’t see any reason as to why P4 can not expand.

- Why Peru?

In part, because Chile and Peru have good relations. And one has to start with countries with good will. I also understand that your minister is studying the entry of Australia. I believe that any opportunity to expand the P4 to P5 or P6 has positive connotations.

To explore business opportunities in New Zealand and obtain economic information about New Zealand, contact:

Pifor Asesores Ltda. (56-2) 233 9385 and NZTE (56-2) 426 0070.

Minister Anderton also visited Argentina. Click here to access his speech made at Exposición Rural, Buenos Aires, Argentina, on 21 July, 2006.

Osorno: playing with technological innovation

In Chile, agriculture is rapidly becoming a high-tech industry, at least as complex as software development or aircraft production, and in order to compete on a global stage the sector needs to adopt cutting edge technology to reduce costs, standardize output and develop new products. Progress is being made, but to make that big leap forward in development, technology is fundamental - the challenge lies in persuading the industry, especially small and medium sized farmers, of the advantages of new technology.

A translation follows of an article entitled "Osorno: is playing with technological innovation" recently published in Osorno's local newspaper (written by Ignacia Jarpa), giving examples of what the Osorno region is doing with Chile's potentialities having being exposed.

A technological innovation proposal was presented to group composed of the president of the Senate, Eduardo Frei, the regional director of INIA of the Tenth Region of Chile, Julio Kalazich, and the assisting professional of Agriculture, Iván Davis, in a meeting held recently in the Regional Offices of Osorno and coordinated by the Governor, Bernardo Candia.

The proposal consisted of a series of strategies for the development of the principal lines of business of the Province of Osorno and an initiative for the improvement of farm productivity and its impact in meat and milk production.
Kalazich referred to the challenges and opportunities that the agricultural and fisheries sector faces indicating that “in the principal businesses of the Southern zone, INIA has estimated potential production to be much higher than current production, which speaks of the need to implement and support diverse strategies of technological innovation that Chile requires in the medium and long term.”

POTENCIALITIES

In dairy milk the current regional production is [1300,000,000] liters approx., which could reach [6,000,000] if the hectarial production is increased. “Currently we hardly produce 3,000 liters and we could be producing 10,000 liters per hectare, that is a level similar to that produced in New Zealand, explained Kalazich.
In beef meat, the current regional production is 80 thousand tones and it could reach 200 thousand tonnes of meat. In potatoes, it is alleged that Chile may pass 500 thousand tonnes to 3.5 million tonnes and increase hectarial production from 21 to 40 hectares as a regional average, considering that currently there are potato producers, industry suppliers that have the productive level of 80 tonnes per hectare or even more.”

As regards, blueberries he affirmed that this sector also has a grand potential and may pass 8 to 20 tonnes per hectare. Lastly, in sheep, he expressed that according to a study conducted by INIA, the regional potential is much greater than 396,000 current head and may reach 4,000,000 head, also considering an increase in the production from 3 to 15 sheep head per hectare.

As regards the matter of technological innovation, the director indicated that currently INIA together with the Universidad Austral de Chile, is about to start the first actions of “Consorcio de Leche” (Diary Consortium) that will involve 90% of the dairy chain. Furthermore, at the end of last March, INIA presented 2 new projects of technological consortium projects in the sectors of potatoes and sheep to FIA and is in the process of obtaining finance.”

Lastly he indicated that “despite the fact that consortiums are a very good development strategy, there are aspects of technological innovation that are not covered by that means, and that is necessary to cover as a country, fundamentally as far as they relate to biotechnology work where INIA is carrying out several works, but requires much more infrastructure and qualified human resources, taking into account the challenges that have allowed Chile to convert itself into a agro-food potency.

As an example, he cited the creation of new varieties of potatoes that amounts to genetics in exportation, the formation of a program of genetic improvement that permits having varieties of blueberries of later production to obtain better prices, the improvement of milk quality through biotechnology tools and the identification of genes to increase weight gains of beef cows, amongst other.

INCENTIVES FOR AGRICULTURE

Iván Davis, representative of the Regional Secretary of the Ministry of Agriculture presented to the authority a proposal to improve farm productivity that complements the action of the Incentive System for the Recuperation of Degraded Lands (SIRSD), incorporating incentives into other parameters, in addition to phosperous and the correction of soil acidity and that contemplates a fertilization plan, a land development program and good farming practices.

New Zealand's Minister of Agriculture Jim Anderton visits Chile

Today it was reported in the Osorno newspaper Diario Austral that Minister of Agriculture, Jim Anderton, visited executives of Soprole (including President of the Board of Directors, José Luis Letelier) to learn about the scope of the recently signed Trans-Pacific Strategic Economic Partnership Agreement (P4 Agreement) between Chile, Brunei Darassalum and Singapore. A visit was also made to the Prolesur plant, located in the sector Pampa Alegre.

Extensive discussions would have covered diverse aspects, such as technological transfer and bilateral collaboration between the two countries to enter into third markets, such as China.

New Zealanders are beginning to fully realize the potential Chile has to rapidly convert itself into a food power, in accordance with the goals set by the Chilean government.

Anderton commented that "the idea is to motivate and share knowledge and technology so that Chile finds its own way in the global market, rather than giving it a recipe to follow”.

Minister Anderton’s visit comes in the wake of the settlement of a trademark dispute which was initiated in February between new player in the dairy market French Danone and Soprole, which resulted in Soprole having to modify its product labelling.

Soprole is controlled by New Zealand’s Fonterra and is currently negotiating a strategic alliance in the dairy and juice businesses with global giant Nestlé, which would replicate a model similar to that of Dairy Partner Americas. The joint venture considers the integration of production, marketing and sales in order to generate synergy and efficiency between both companies.

Chile-NZ Double Tax Agreement In Force

The following is the Press Release by New Zealand Government at 1:22 PM, 06 Jul 2006:

"New Zealand's new double tax agreement with Chile has come into force, Revenue Minister Peter Dunne announced today.

The double tax agreement was incorporated into New Zealand law in 2004, but awaited the completion of legislative procedures in Chile, which has now occurred. The new agreement is effective from 21 June 2006.

"The new double tax agreement with Chile is our thirtieth such agreement and the first with a Latin American country," Mr Dunne said.

"I am very pleased the agreement has become a reality. New Zealand and Chile have a longstanding friendship and trade between the two countries is growing steadily.

"In the year to June 2005, our exports to Chile amounted to $40 million, while imports from Chile were worth nearly $43 million. Key exports are chemical products, seeds and some dairy products, while Chilean imports include grapes, wine and copper.

"Double tax agreements play an important role in removing obstacles to cross-border trade and investment. They prevent businesses being taxed twice, give greater certainty of tax treatment of cross-border business, lower taxes on some income and reduce compliance costs for some activities.

"The new double tax agreement with Chile will strengthen our business links and help to foster trade between our two countries," Mr Dunne said".

Click here to access the text.

New Zealand Delegation Visit to Chile

The P4 Mission Delegation visited Chile last week. Here's what Fundación Chile had to say:

"Meeting is part of the Trans-Pacific Strategic Economic Partnership Agreement (Trans-Pacific SEP), also known as P4, signed by Chile, Singapore, Brunei and New Zealand.

A mission with 15 New Zealanders, including the New Zealand ambassador and other members of that country’s diplomatic corps, visited Fundación Chile as part of a trip to Chile, in order to learn about the Chilean situation and to stimulate trade alliances. The mission’s members, which included business people, representatives from the government and from educational centers and institutions, learned about the different projects that Fundación Chile develops and, at the same time, contacted Chilean business people who are interested in taking advantage of New Zealand’s technological advances in the dairy and livestock sectors.


The visit is part of the Trans-Pacific Strategic Economic Partnership Agreement (Trans-Pacific SEP), also known as P4, between Chile, Singapore, Brunei and New Zealand. The agreement will yield strategic benefits to the four members, by building a bridge between Latin America, the Pacific and Asia, and includes a component of collaboration in technological development.

The mission to Chile was organized by New Zealand Trade & Enterprise (NZTE), represented by the Director of that agency’s biotechnology and agriculture areas, Dr. Chris Boalch.

NZTE entrusted Fundación Chile’s Agribusiness Area and the executive group of the Waikato Innovation Park (a research and development park for the agriculture industry in New Zealand) to prepare an exploratory study of possible alliances between New Zealand and Chilean business people. For this purpose, Fundación Chile interviewed different Chilean companies involved in the food chain, in order to discern the willingness and interest to generate alliances and agreements, which yielded auspicious results. The conclusions of these studies were presented in the meeting.

The aim is to take advantage of New Zealand’s investment in technological development by applying it in the Chilean market, especially in the agriculture and forestry sector, with alliances and licensing agreements. In this way, third party markets such as Latin America or the United States can be approached together.

June 28, 2006"

Chilean Approval of Double Taxation Agreement between NZ and Chile

The Double Taxation Agreement between New Zealand and Chile was unanimously approved by the Chilean Congress on 6 June. The DTA will enter into force on 1 January, 2007.

Para obtener más detalles sobre este acuerdo, visite el sitio web de www.direcon.cl

P4 Mission to Chile June 26 – July 1, 2006

The Trans-Pacific Strategic Economic Partnership Agreement (P4 Agreement), which will come into force during this year, has provided a strong growing strategic pillar for bilateral relationships between New Zealand and Chile.

The aim of this first “P4 Mission” to Chile by high level executives from NZ businesses in the agri-tech, horticulture, education, science and bio-tech arenas is to engage the participants with high-level government and private industry body groups, such as CORFO and the National Agricultural Society.

The visit will include presentations by Fundación Chile, who was commissioned by New Zealand Trade & Enterprise to investigate immediate and future collaborative business opportunities in Chile and Chilean law firm Grasty Quintana Majlis & Cía., amongst other.

The groups will split into sectorial groupings after a couple of days in Santiago and travel to regions, such as Osorno and Puerto Montt, to conduct further exploratory meetings and visits.

Pifor views the P4 Mission as a great opportunity to increase awareness of the real opportunities available in Chile, so that these important players can learn from experience that Chile is an incredible country that has a lot of potential for business.

Hon Minister Jim Sutton’s comments on his recent visit to Chile

In May, Honourable Jim Sutton, ex-Minister of Agriculture and current Minister of State, visited Chile on a business mission to explore opportunities of economic cooperation, but also to convince the Senate of the Republic of Chile to ratify the Trans-Pacific Strategic Economic Agreement (P4), which has already been ratified by New Zealand and Singapore.

During his visit, Hon. Minister Sutton was interviewed by the Editor of Chile Potencial Alimentaria on May 15, 2006.

[Haga un clic aqui para leer la entrevista en español]

The following is a free translation of the interview:

What is New Zealand Government’s priority for agriculture?

The big issue is to open and maintain open the global markets. The priorities are fruit importers, particularly Asia; countries that have no land to cultivate. For example, China has 20% of the world population and only 7% of agricultural land that can be cultivated.

Are you sure Chile is going to ratify the P4 Agreement?

One can never be 100% sure of parliamentary processes until the events occur, but I believe that Chile will ratify. The agreement was negotiated in a competitive manner by Chile and the agreement is beneficial for both countries. Furthermore, President Bachelet is strongly committed to a prompt ratification. Although it is not anticipated that ratification will generate a despatch of products from New Zealand to Chile, due to the fact we produce more or less the same, the farmers of my country accept the agreement because it increases the possibilities that the New Zealand dairy farmers can enter into joint ventures with Chilean companies and together open new markets, especially in the American continent.

What are the ambitions of the dairy industry in your country?

We wish to be among the first two places in the most important markets in the world. One of these is South America, where consumption in increasing markedly. When I first came to Chile, Chile was importing milk products from New Zealand. At that time the Chilean farmers were scared that the market would be saturated, the prices would hit the floor and the small producers would bankrupt. But the New Zealand dairy industry never had any intention to drop the prices. We enjoy high prices. And from this point of view, the exportations to Chile have decreased and exportations from Chile to other countries have dramatically increased.

It that due to Fonterra’s interest in Soprole?

Partially, yes. I believe that the New Zealand influence has made a great difference in the modernization of the Chilean processing industry. And I also know that they are making incentive payments to the producers that are free of brucellosis and tuberculosis and that deliver their milk between 3-4 C°; that is to say, they are rewarding those farmers who work to increase product quality.

Ex-Agriculture Minister, Jaime Campos, represented the vision of the producers that wanted to protect the dairy industry from competition and importations. But, he confessed to me, upon leaving his position, that last year dairy exportations from Chile amounted to US$ 100 million. So things turned out as I had indicated, rather than as he had thought.

Where do you see the synergies between both countries?

For example, in kiwifruit, we are both Southern hemisphere countries; however, we have somewhat different seasons. Zespri, an entity that produces, sells and markets kiwifruit, has established contracts with horticulturalists in half a dozen countries, including Chile, to cultivate a unique variety, named the Gold Kiwifruit to supply product throughout the entire year to its markets, especially to Japan.

And in forestry?

There are many opportunities. We are both principal producers of radiata pine in the world. And although it is a very versatile wood, it is not as well known as the Douglas Fir variety, which is cultivated principally in the United States. The logical path is that both countries, together with other producers of radiata pine, such as Australia and South Africa, can work together to promote the virtues of this wood. We have been working on this in China, Korea and in Japan. For example, we obtained the acceptance of radiata pine in the Chinese Construction Code, that until now had all specifications designed for Douglas Fir. That was because the prior code was written with the assistance of Canada and the United States.

Is it difficult to join competitors to promote a product together?

Yes, it is. Obviously, we are going to continue competing, but it is more than possible that different countries can work together in the generic promotion of the commodity radiata pine. We have the experience of the generic promotion of wool, through the International Wool Secretariat, that included Australia, New Zealand and South Africa.

So, you are talking about radiata pine, golden kiwi, milk….What else?

You are doing what many do, talking about trading products, as if that was the only form of trade. But the type of trade that increases quickest in the world for New Zealand and probably most of the developing world is that of services.

Chile produces raw materials and New Zealand the technology?

I believe that will happen in both directions. We went to Fundación Chile and I am very impressed with their research and development model. Maybe the best example is the Chilean Salmon Industry that is the direct consequence of the research done by Fundación Chile, which subsequently incited state assistance and private investment. And now it is one of the largest industries in the world. That is not the story of a poor small country in development. It is the history of a very dynamic economy.

What services do you refer?

Our greatest services export is education. Chilean dairy farmers are technically a little behind, so they have much to benefit by adopting New Zealand technology. I come with a delegation of businessmen that are offering a range of services, from dairy equipment to medical supplies for livestock and software for the milk production management systems.

Are you concerned about the matter of intellectual property? Chile is not exactly known to respect intellectual property rights.

No, not at all. I don’t believe that we have had problems and Chile has a legal system that, as far as we know, protects the rights of persons.

NZTE offers Incentive for NZ Business to Break into Latin American Markets

A recent announcement made by Economic Development Minister Trevor Mallard that New Zealand entrepreneurs, start-ups and established businesses will receive extra funds for market development assistance is welcome news for Pifor, its clients and, importantly, its potential client base.

The funds will be directed to encourage the integration of more New Zealanders into global markets and improving New Zealand's international linkages.

The annual funding for the EDG-MD Scheme operated by NZTE will increase from $6.1 million to 25.9 million in 2006/2007. In addition to the extra funding, eligibility has been widened from $20 million to $50 million annual turnover to help more medium size companies access the support.

From 1 July application details will be available on the NZTE website and firms will be told if their application has been successful from 1 October.

The projects that are covered will need to be related to the implementation of a strategic market development initiative, covering the following expenses on a 50/50 match basis:

• Market visits (includes travel and accomodation in accordance with NZTE schedule rates)
• In-market representation and expenditure related to setting up and maintaining representation in new international markets
• Legal expenditure related to establishing in-market representation and costs related to setting up an office in-market, provided there is not one already present
• Advertising and promotion
• Marketing collateral
• Trade fairs and events (inlcuding related project management)
• Market research - services paid by NZTE for the provision of market research are excluded.

If your firm can demonstrate that it is committed and capable of undertaking significant and sustained market development activity, please contact NZTE or us for further information.

We are convinced Chile and Latin America offers significant business development opportunities for you.

NUNC TEMPUS ACCEPTABILE

Chile's Investment Climate ranked by the World Bank

Chile has been added to the World Bank Enterprise Surveys Database. While in basically all aspects of business, Chile ranks significantly better than its neighbours in the region, the survey identifies pending challenges for Chile's development: increasing its spending on R&D relative to sales and reducing unemployment.

Report: Enterprise Survey on Chile

World Bank Enterprise Surveys measure business perceptions of the investment climate and can be used to analyze the link to job creation and productivity growth.

thinking.....outside the square

P4 Agreement entered into force b/w NZ and Singapore

The Trans-Pacific Strategic Economic Partnership Agreement (P4) entered into force between New Zealand and Singapore on May 1, 2006. Check out the news release published by the NZ Embassy.

Chile and Brunei have yet to ratify the Agreement.

More details regarding tariff reductions and market access into the New Zealand market under the Trans-Pacific Strategic Economic Partnership Agreement can be found at the sites of the New Zealand Ministry of Foreign Affairs and Trade or the Chilean Ministry of Foreign Affairs General Directorate for International Economic Affairs (DIRECON).