TABLE OF CONTENTS Page I. COMMERCIAL OVERVIEW 7 Overview of Import Market Brief Synopsis of Commercial Environment Host Country Business Attitude Toward the U.S. Major Business Opportunities Major Roadblocks to Doing Business II. LEADING TRADE PROSPECTS FOR U.S. BUSINESS 10 Best Prospects Products and Services for U.S. Exporters Best Prospects for Agricultural Exports Best Prospects for Industry Sector Exports III. ECONOMIC TRENDS AND OUTLOOK 12 Major Trends and Outlook Principal Growth Sectors Government Role in the Economy Balance of Payments Situation Trade and Investment Barriers Labor Force Major Infrastructure Projects Underway Public Works with Private Sector Participation Mining Investment Projects Energy Investment Projects Forestry Investment Projects Industry Investment Projects Commercial Building Investment Projects Telecommunications Investment Projects IV. POLITICAL ENVIRONMENT 19 Nature of Bilateral Relationship with the U.S. Major Political Issues Affecting Business Climate Brief Synopsis of the Political System Election Schedule V. MARKETING U.S. PRODUCTS AND SERVICES 21 Distribution and Sales Channels Use of Agents/Distributors - Finding a Partner Franchising Direct Marketing Joint Ventures/Licensing Steps to Establishing an Office Selling Factors/Techniques Advertising and Trade Promotion Pricing Product Sales Service/Customer Support Selling to the Government Protecting your Product from IPR Infringement Need for a Local Attorney VI. TRADE REGULATIONS AND STANDARDS 31 Tariffs and Import Taxes Customs Regulations Import Licenses Export Controls Import/Export Documentation Temporary Entry Labeling and Marking Requirements Prohibited Imports Standards Free Trade Zones/Warehouses Special Import Provisions Membership in Free Trade Arrangements VII. INVESTMENT CLIMATE 37 Country Policies and Practices Openness to Foreign Investment Conversion and Transfer Policies Expropriation and Compensation Dispute Settlement Performance Requirements/Incentives Right to Private Ownership and Establishment Protection of Property Rights Regulatory System - Laws and Procedures Efficient Capital Markets and Portfolio Investment Political Violence Bilateral Investment Agreements OPIC and Other Investment Insurance Programs Labor Foreign Trade Zones/Free Ports Capital Outflow Policy Foreign Direct Investment Statistics VIII. TRADE AND PROJECT FINANCING 44 Brief Description of Banking System Foreign Exchange Controls Affecting Trading Foreign Investment Foreign Loans Foreign Investment Funds Recent Changes General Financing Availability Bank Debt Foreign Banks Other Forms of Credit Factoring Recent Changes How to Finance Exports/Methods of Payment Types of Available Export Financing and Insurance Project Financing Available List of Banks with Correspondent U.S. Banking IX. BUSINESS TRAVEL 52 Business Customs Travel Advisory and Visas Terrorist Activities Crime Information Drug Penalties Holidays Business Infrastructure Transportation Language Communications/Information Systems Housing Health Food APPENDICES Page A. COUNTRY DATA 58 Profile Domestic Economy Trade Chilean-U.S./Imports-Exports Imports of Manufactured Products 1993 U.S. Agricultural Goods Imports Principal 1993 U.S. Agricultural Exports to Chile Principal 1993 U.S. Agricultural Imports 1993 Trade Balance with Three Leading Partners Principal 1993 U.S. Exports to Chile Principal 1993 U.S. Imports Investment D.L. 600: Foreign Investment by Sector Chapter 19: Authorized Foreign Investment by Sector 1985-1991 D.L. 600 & Chapter 19: Foreign Investment by Source Chilean Stock of Investment Abroad: Informal & Formal Markets B. BEST PROSPECTS FOR AGRICULTURE AND INDUSTRY SECTOR EXPORTS Matrix of Best Prospects for Agricultural US Exports to Chile 60 Grains Processed Fruit & Vegetables Snack Foods Raw Cotton Pet Foods Tree Nuts Fresh Deciduous Fruit Matrix of Best Prospects for Industry Sector Exports Pollution Control Equipment Aircraft & Parts Telecommunications Equipment Computers & Peripherals Automotive Parts & Service Equipment Travel & Tourism Services Port & Shipbuilding Equipment Franchising Mining Industry Equipment Construction Machinery Railroad Equipment Building Products Medical Equipment Oil & Gas Equipment Computer Software Safety & Security Sporting Goods & Recreation Goods Electrical Power Systems Apparel Laboratory & Scientific Instruments C. U.S. AND COUNTRY CONTACTS 83 Country Government Agencies Government-Related Agencies Country Trade Associations/Chambers of Commerce Country Market Research Firms Country Commercial Banks Private Chilean-Owned Banks Other Agencies U.S. Embassy Trade Personnel Washington-Based USG Country Contacts Chile Desk Officers Other Agencies U.S.-Based Multipliers Relevant for Country Chilean Government Agencies D. MARKET RESEARCH 102 Available and Upcoming Agricultural Reports Available and Upcoming Industry Reports E. TRADE EVENT SCHEDULE 103 Trade Event Schedule