Exporters urged to tap into Chilean markets

CHILE’S finance minister has encouraged North West exporters to make the most of his country’s booming economy.

Speaking at a UK Trade & Investment event at Old Trafford Felipe Larrain – George Osborne’s counterpart – told an audience of 200 that his country was enjoying sustained growth, low unemployment and even had a budget surplus.

He was in Britain along with a major Chilean delegation to mark Chile Day in London this week to promote commercial ties between the countries.

Annual growth of around 6% has been fuelled by strong demand for raw materials in the Far East and Chile is a major copper producer – its mines account for 55% of all the country’s exports.

But Mr Larrain is keen to diversify and see other parts of the economy prosper, along with mining. Sectors ripe for British involvement are renewable energy, health, education and IT.

Alluding to comments made by business secretary Vince Cable, he told TheBusinessDesk.com: “We don’t do industrial policy, we don’t pick winners in Chile. We’re seeking to create an environment for companies to flourish. That’s a target for us.

He added: “The fact we’ve brought 300 entrepreneurs to mark Chile Day is proof there are long ties between the two countries. The rule of law and political stability mean that it’s attractive.”

Last year UK exports to Chile grew 26% to £740m, but UKTI wants more businesses to strike trading relationships with the country which has a population of 17 million and a burgeoning middle class.

Clive Drinkwater, director of UKTI North West, said: “Right across the board there are opportunities for goods and services – luxury cars, fashion, technology, engineering, and financial services as well.

“It’s one of those markets that’s full of opportunity for not just big companies but small and medium-sized enterprises too.”

He added: “What we need is a two-pronged approach: more exporters generally and those companies that are already exporting to open up and look at the opportunities in high growth emerging markets, because that’s where growth in the world economy is occuring.”

Other speakers at the event included Alan Beattie, HSBC’s head of commercial banking for Latin America and Alejandro Rivera, vice president of mining group Antofagasta Minerals, who discussed opportunities for British companies in the mining sector.

Johnny Cohen, managing director of Bury-based Herbal Heatpack, said he was interested in selling his products – microwavable bags that relieve pain – in the country.

“We’re looking for distributors or joint venture partners over there,” he said. “We’re looking at Latin America and from the research we’ve done Chile is a good place to start.”

David Bentley, an aviation consultant at Oldham-based Big Pond Aviation, said he wanted to benefit from infrastructure improvements. “There’s a lot of expenditure on airports and a privatisation drive in Latin America,” he said.

The event also heard from Sebastian Aguirre, international marketing manager at winemaker Concha y Toro. Wine is one of Chile’s biggest exports to the UK and the £560m turnover group opened its first overseas base in Oxford. It also has commercial ties with Manchester United.

“The UK is a good market for us because you drink a lot and there’s no domestic production,” said Mr Aguirre.

UKTI is planning a trade mission to Chile in November. For more information click here.