MercoPress. South Atlantic News Agency

Chile vulnerable to Argentina

Chile vulnerable to Argentina.Chile ranks 21st. among the top sixty countries to invest in the 2001/2005 period, according to "The Economist Intelligence Unit" (EIU). However in spite of being the best Latinamerican ranked country, Chile has dropped one step from the previous 1996/2000 period. "Chile was steadily growing a couple of years ago, supporting with not much effort foreign crisis such as Mexico, but now the country is vulnerable to the Argentine situation, and people know that", said Chilean analyst Fernando Garcés. But according to EIU Chile still ranks as the top Latinamerican country, followed by Mexico (31) and Argentina (33), and further back Brazil (37), Peru (40) and Colombia (43).The EIU report also indicates that between 1998 and 2000, annual direct investments in Latinamerica reached 82 billion US dollars of which 40% went to Brazil, the top attraction for the next five year period. Mexico thanks to its Nafta membership is also expected to attract much investments in the coming years. Further on the report says that a growing qualified active population, a strategic geographical position and a favourable environment for business, "ensures investments will continue to be attracted to Chile". Top of the 60 country list are Holland, Untied States and Britain. The continent which most advanced during the last five year period was Europe, particularly the former Eastern Europe, while the most battered Hong Kong, that dropped from third position to 10. EIU forecasts that a after a transitory slowing down, the world economy will rebound as deregulation and globalization keep pushing ahead.

Tariff discussions

Chile and Argentina will begin this week a discussion round on tariffs and other trade impediments that are hampering bilateral commerce and causing growing concern in the Chilean government. Although Argentina denies it, since having its beef banned because of foot and mouth disease, several products from Chile, including poultry, seafood and canned peaches have faced increasing difficulties to reach Argentine consumers. Argentine sanitary inspectors recently denied certification to several Chilean plants that export broilers, turkey and pork to Argent