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
Tuesday, June 20, 2006
Saturday, June 17, 2006
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.
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.
Thursday, June 08, 2006
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.
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.
Thursday, June 01, 2006
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:
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
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