The benefits of a country platform

As an open economy, Chile presents commercial opportunities for other countries.

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One of the most notable effects of Chile’s progressive trade policies is the expansion of external markets for exports.  However, this benefit is not exclusive to Chilean products and services.  The vast network of commercial treaties between Chile and the rest of the world creates excellent opportunities for other types of business.

Chile also stimulates imports of goods from 56 countries or blocs comprising 90% of global GDP by establishing a favorable tax and tariff framework.

These agreements are often creative and somewhat complex.  For example, a foreign company can sell raw materials to Chilean manufacturers that produce final products for exportation.  Under a free trade agreement, the raw materials could potentially enter into Chile at reduced or no taxation.

Foreign businessmen can also incorporate a company or subsidiary in Chile.  In this arrangement, the new businesses buy goods in Chile, manufacture them, and sell final goods to other countries covered by the free trade agreement.  This alternative is especially attractive to other Latin American companies, even though European companies have increasingly pursued this course.

This post is also available in Spanish