MercoPress. South Atlantic News Agency

Chilean exports reach a record 39 billion US dollars

Chilean exports advanced 35% in 2005 compared to the previous year totalling 39 billion US dollars according to the International Economic Relations Office, (Direcon). Foreign trade now is equivalent to 65% of Chile's GDP.

Carlos Furche, head of Direcon said that the free trade agreements signed by Chile have helped more than double exports in the last six years.

"In 1999 Chile exported 16 billion US dollars, and in 2005 totalled 39 billion", said Furche adding that it shows "Chile consolidating with an economy whose main engine is foreign trade".

Asia has become Chile's main trade partner with a 37% value share.

However Mr. Furche said Chile must move faster towards the services sector becoming the bridge with Asia for the rest of Latinamerica, and the natural platform "for Asians to make business this side of the Pacific".

"Asia is a priority, the Chilean government is promoting business and exchanges with China, India, South Korea and Japan", he added recalling that a free trade agreement is waiting for ratification in the Chilean Congress; talks for a partial agreement with India have ended successfully and with Japan preliminary negotiations have begun.

Mr. Furche also mentioned Thailand and Malaysia as countries to advance trade relations.

Another significant area for Chilean trade is Mercosur, "which has become the main market for several Chilean products".

"We've insisted in improving trade relations with Mercosur members; we're finishing an Economic Complementation agreement with Bolivia and advancing with Peru and Ecuador in similar agreements"revealed Mr. Furche.

Meantime copper which in 2005 represented 45% of Chilean exports reached a new nominal record price in the London Metals Exchange, 2.1282 US dollars per lb Grade A. Chile is the world's main copper producer and currently the country's second export is molybdenum, a by product of the processing of copper.

The leading exporting companies are Codelco (government owned), BHP Billiton; Anglo American; Phelps Dodge; Antofagasta Minerals and Noranda.

Each extra US cent in the copper price represents an additional 100/120 million US dollars for Chile.