i!r TV COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 31.05.1995 
COM(95) 232 final 
COMMUNICATION FROM THE COMMISSION 
TO THE COUNCIL AND THE EUROPEAN PARLIAMENT 
on the strengthening of relations between the European Union and Chile 

In June 1994 the Corfu European Council discussed relations between the European 
Union and Latin America and its regional organizations. It called on the Commission to 
put proposals to the Council aimed at strengthening relations with Mercosur and Mexico 
but made no mention of Chile. 
Of all the Latin American countries, Chile has always underlined its close links with the 
European Community because of cultural, political and economic similarities. In July 1994 
it presented a non-paper clearly indicating the Chilean government's intention to improve 
its relations with the EU by stepping outside the cooperation agreement framework and 
aiming for an association agreement involving the creation of a free-trade area between 
the European Community and Chile. 
In November the Council noted with satisfaction Chile's interest in strengthening its 
bilateral relations with the Union and its preference for an open form of regionalism. It 
welcomed its proposals for an association with Mercosur with a view to establishing a 
free-trade area. 
The Council accordingly decided to review the EU's relations with Chile during the first 
quarter of this year on the basis of a Commission evaluation report. 
In this context the EU's response to the non-paper (presented by the troika to the Chilean 
Foreign Minister in December) signalled the EU's readiness for a more comprehensive 
dialogue with Chile with scope for further development. 
The Essen European Council of December 1994 confirmed its willingness to establish a 
new and extended partnership between the European Union and the Latin American 
countries and urged the Commission and the Council "to put ideas on the future form of 
treaty relations with Mexico and on the extension of relations with Chile into concrete 
form". 
This communication from the Commission to the Council and Parliament has been drawn 
up in response to the requests of the European Council and the Council: it (a) assesses the 
current situation and trends in Chile and examines the country's foreign relations and (b) 
presents strategic options for extending the scope of EU-Chile relations. 
I. CHILE: CURRENT SITUATION AND TRENDS 
1.1 The Chilean model of economic development 
In March 1994 the second CDP (Concertation de los Partidos por la Democracia) 
government confirmed the success of the democratic transition and the consolidation of 
the parliamentary system. The parties which make up the political spectrum of the CDP 
(socialist, Christian Democrats and other centre groups) have a strong majority over the 
right-wing opposition. Recent political trends point to a future with two main, increasingly 
similar, electoral coalitions. 
The absence of political conflict over the central issue in Chile - management of the 
economy - encourages national consensus. Chile has a freely operating market economy. 
The government's role is to oil the system's wheels and correct any adverse economic, 
social or environmental effects arising from industrial development, market economics and 
structural under-development. The Chilean economic system and its institutional structure 
are now comparable to those of OECD countries. 
The fact that the Chilean economic system operates on the basis of competitive productive 
activity and orthodox macroeconomic management is a clear indication of the country's 
progress along the path of long-term growth. 
With a population of 14 million, Chile is a typical small, open economy with exports 
which absorb about a third of production (in 1993 they absorbed 27.8% at current prices 
and 36.2%o at 1990 prices) and a modest tariff barrier in the form of a single external tariff 
of 11%. 
In this open trade environment, the private sector in Chile has demonstrated its capacity 
for initiative and the entrepreneurial spirit has flourished. 
Savings and investment levels are currently the highest in Latin America (over 26% of 
GDP, against 18% in Latin America overall), reflecting private capital's response to the 
market opportunities offered by the Chilean economic system. 
Public savings (4.2% of GDP in 1994) outstrip public investment. The Chilean 
government has thus managed to establish a budget surplus (+1.3% in 1994) enabling it to 
reduce public debt, which at the end of last year was some 31% of GDP. 
Discipline has also been maintained in monetary policy, which is managed independently 
by the Chilean Central Bank. Although inflation remains quite high, this is due to legally-
mandated indexing systems which make wages and pricing somewhat inflexible. Inflation 
rates have, nevertheless fallen steadily in the last few years, from 25% in 1990 to 8.9% in 
1994. 
The external debt, excluding reserves, was USD 12 billion in 1990, dropping to USD 8.7 
billion in 1994. In 1990 debt servicing costs were equivalent to 17.2% of exports, 
dropping to 7.8% in 1994. 
It is worth noting here that the Chilean economy has been spared the financial and 
monetary crisis suffered by most European economies in the first quarter of this year. The 
Chilean currency has held its international parity and there has not been any "tequila 
effect" on the stock market. 
All these economic policy measures have helped to keep Chile's growth rate relatively 
high (6.3% per year at constant prices between 1990-94) and its unemployment level 
comparatively low in the current international climate (5.6% in 1994). Chile is now 
considered to be the country with the most competitive economy and the lowest risk level 
in Latin America. None the less, with an average per capita income of USD 3 400 Chile's 
economy still faces serious problems of under-development. Poverty remains a major issue 
and is one of the government's top priorities. 
Per capita, Chile has one of the highest levels in the world of exploitable natural economic 
resources. It must inevitably diversify its production system and move into manufactures 
and services, at the cost of some painful restructuring. Environmental and information 
technologies for advanced services are now considered to be prime vehicles of the 
country's economic diversification. 
The government is constantly on the look-out for new ways of involving the private sector 
- companies and civil society in general - more fully in developing infrastructure and social 
facilities. 
1.2 Chile's economy on the world stage: open regionalism 
One of Chile's main objectives on the international relations front is to continue the 
process of making the Chilean economy more international. 
The main source of inspiration for this policy is "open regionalism", namely the 
negotiation of regional agreements to encourage trade and investment expansion with a 
view to the general liberalization of world trade. 
Chile adopts a completely open position to the world, maintaining very close investment, 
trade and cooperation relations with the OECD countries, the rest of Latin America and 
many countries in Asia. 
* Export/trade 
Exports are the main driving force behind Chile's economic development and natural 
resources account for over 90% of these exports. There is a particularly high 
concentration of primary exports to the OECD countries, while the main markets for 
Chilean exports of manufactures and services are in Latin America, absorbing over 
40% of Chilean exports of manufactures. 
Between 1980 and 1994 Chilean exports more than doubled in value (x 2.3) to reach 
USD 11 billion. During the same period exports to Asia increased sevenfold, totalling 
USD 3.5 billion, while exports to the USA increased threefold to reach 
USD 1.9 billion. European markets have not grown as much (they saw a 50% increase 
between 1980 and 1994) but are still very important for Chile. The decline in the 
relative importance of exports to Europe was particularly marked from 1990, in part 
owing to the deterioration in Chilean terms of trade and the recession in Europe. 
According to Eurostat data, imports to the EU from Chile accounted for 0.56% of 
total imports in 1990 (excluding intra-European trade) and only 0.40% in 1993, 
although certain products (see Annex III) remain sensitive. 
European producers, however, realised the potential of the Chilean market and hence 
Chile's share in the EU's total non-Community exports rose regularly from 0.28% in 
1990 to 0.35% in 1993. The USA, however, continues to be Chile's main supplier, 
accounting for 23% of total imports in 1994. 
Overall, the breakdown by zones is very balanced: 26% of total trade in 1993 was with 
the EU, 18% with the USA, 23% with Latin America and 22% with Asia. 
The European Union remains Chile's principal trading partner. 
This balanced opening-up to the world is the main factor behind recent developments 
in Chilean trade policy, the main features of which are a modest level of domestic 
market protection and a systematic search for preferential treatment throughout the 
world. 
Chile did not hesitate to lower its external tariff unilaterally (from 30% in 1984 to 11% 
in 1990) and adopt a position in favour of maximum Hberalization of trade in goods 
and services during the GATT negotiations. Similarly in the Latin American Integration 
Association (LAIA) context it was Chile which did the most to promote the economic 
complementarity agreements, in some cases opting for more general free-trade systems, 
particularly in its agreements with Mexico (1991), Colombia and Venezuela (1993), 
Argentina (1991), Bolivia (1993) and most recently with Ecuador (1994). Negotiations 
are under way with Peru. 
These trade agreements with Latin America have undoubtedly contributed to the 
substantial increase in trade in the last few months, above all in manufactures. 
Last year the new Chilean government decided to focus on a policy of closer relations 
with major trading blocs. It continued negotiations with Mercosur, considered 
membership of Nafta, became a member of APEC (Asian and Pacific Economic 
Cooperation Forum) and called for a new form of association with the EU. 
* Mercosur 
Membership of Mercosur's customs union would be very difficult for Chile as things 
stand because the union's common external tariff will vary between 0% and 30% to 
begin with and will on average be higher than Chile's (the idea of raising tariffs is 
currently unthinkable for the country's government and economic operators). Chile 
therefore intends to negotiate an association formula which would ultimately allow for 
a free-trade situation with Mercosur but maintaining the difference in the external tariff. 
Chile is planning to conclude an association treaty with Mercosur this year with a view 
to consolidating the current concessions in trade with Argentina and preferential 
openings in trade with other member countries, and to establishing a firm timetable for 
moves to free trade. Recently, however, various obstacles have held up the 
negotiations. 
* Nafta 
The agreement with Nafta (Chile, which has a free-trade treaty with Mexico, could 
have negotiated individually with the USA but opted simply for Nafta membership) 
mainly depends on the North American position. The negotiations have been held back 
by the Mexican economic crisis and domestic-policy factors such as the new 
composition of the US House of Representatives. 
The most optimistic forecasts, if agreement is reached, are for a USD 115 million 
increase in Chilean exports as a result of US trade openings under Nafta. According to 
other analysts the main effects will be felt on Chilean imports because of the deflection 
oftradetotheUSA. 
* APEC 
Trade relations with the Pacific should also become stronger as a result of APEC's 
progressive development, the aim being a free-trade area among its members by 2015. 
Chile has begun negotiations with New Zealand with a view to concluding a free-trade 
treaty. 
* European Union 
Another facet of Chile's burgeoning trade relations is its application to the EU to 
conclude an association agreement providing for trade liberalization between the two 
partners. 
Currently 82% of Community imports from Chile consist of commodities which have 
duty-free access to the European market without any restrictions on quantity. The main 
constraints on Chilean exports to Europe are quotas on a few agricultural products. 
The average rate of duty on Chilean imports to the EU is 2.4% (15% of these imports 
have until now come under the Generalized System of Preferences). It is clear from 
recent trade disputes that Chilean exports have come up against more obstacles in the 
USA and Japan than on Community markets. 
* Foreign investment 
Chile's progress towards a free-market economy has been bolstered by an increase in 
direct foreign investment. Between 1974 and 1994 nearly USD 12 billion has been 
directly invested in Chile, over half of this in the mining sector. Of these investments 
48.8% are from Canada and the USA, 25.4% from Europe, 14.6% from the Pacific 
region and 8.2% from the rest of Latin America. In the manufacturing and services 
sectors alone, European capital accounts for 44% of all foreign investment, giving 
European firms a firm foothold in the Chilean industries of the future. 
I.3EC-Chile cooperation 
Cooperation ties between Chile and the EC are excellent. The scale of the Community's 
contribution (grants) between 1990 and 1994 can be seen from the following figures: 
- European Community 65.7% 
- International organizations 5.1% 
-USA 6.1% 
-Japan 15.6% 
As a result of the 1973 coup d'état and the ensuing spate of human rights violations the 
Community and its Member States distanced themselves from the Pinochet regime. 
Relations with Chile, however, continued despite its political vicissitudes. The EC first 
came to the support of civil society in Chile by providing food aid via humanitarian 
organizations (some ECU 20 million between 1988 and 1992). The European Parliament 
then spearheaded the Community's efforts to encourage the restoration of democracy with 
the inclusion from 1988 of a special budget heading for NGOs working in Chile and the 
creation of a new budget item to "contribute to the process of democratization in Chile 
and Latin America", which was increased in 1993. 
These two measures helped to support activities targeted at the Chilean people, primarily 
the most disadvantaged groups, and the "support for democratization" budget heading 
first helped Chile back on the road to democracy and then to political stability. 
The framework cooperation agreement was signed on 20 December 1990. It is a third-
generation agreement which bases EC-Chile relations on respect for democratic principles 
and human rights and contains several new elements. These include more detailed 
provisions on cooperation in the field of science and technology, training and the 
environment. New clauses open the way for social and cultural cooperation and for 
cooperation on public administration, information and communications. 
Cooperation with Chile was stepped up in 1991, amounting to a total of some ECU 18 
million (ECU 13.2 milhon in 1990). In 1991 one of the main achievements in the field of 
economic cooperation of mutual interest was the setting-up of the "Fundaciôn 
Empresarial CE-Chile", a centre for economic cooperation and technology transfer. Its 
main task is to provide small and medium-sized enterprises with services such as technical, 
economic and financial information, disseminate know-how and technology from the EC 
and in general promote contacts between EU economic operators and their Chilean 
counterparts. 
In 1992, EC-Chile cooperation totalled some ECU 25.5 million. As a result of new EU 
cooperation guidelines, the sectoral and geographical scope of financial and technical 
assistance was extended and for the first time Chile became eligible for an integrated 
financial and technical assistance programme in its northern regions (ECU 10 million). 
From 1993 cooperation (which that year totalled some ECU 24 milhon) was mainly 
focused on economic cooperation projects aimed at the diversification of agricultural 
exports, investment promotion, industrial and energy cooperation and technology transfer. 
In 1994 a budget of some ECU 15 million remained focused on economic and 
technological cooperation. At the same time three major strategic areas were established: 
- poverty alleviation, 
- continuing government reform, 
- the internationalization of the production system. 
EL FUTURE EU-CHILE RELATIONS: STRATEGIC OPTIONS 
n.l Economic and institutional trends 
The overall evaluation of recent EU-Chile relations is clearly a satisfactory one. The 
Union enjoys a special position in Chile's trade, investment and cooperation relations. 
Cultural and economic ties are close and despite geographical distances, Chile has many 
political, economic and cultural affinities with Europe. 
However, the relative decline in Chilean exports to the Community, coupled with the 
impression in Chile that major European firms are not investing enough in the country, has 
led many Chilean decision-makers to believe that the Community is less interested in Chile 
than it used to be now that democracy has returned. 
If current trends are not corrected they could militate against the harmonious development 
of relations with Europe. An immediate effect of Chile's joining Nafta would be a 
deflection of trade that would affect European exports of capital and consumer goods, 
even though the 11% tariff barrier is not very high. Furthermore, the development of 
closer ties with other Latin American countries, especially a link with Mercosur, will tend 
to attract Chile's non-traditional exports to the area and so reduce the relative importance 
of the Community market for Chile's product diversification drive. 
These trends should not be overestimated, however. European economic operators are 
making their presence felt by investing in expanding sectors of the Chilean economy. 
Furthermore, the decline in the relative share of Chilean exports in Community trade also 
stems from the increase in Chile's exports to Latin America and Asia, which is indicative 
of the dynamic nature of the country's economy. 
Mercosur and Nafta, by triggering two simultaneous processes to establish customs 
unions and free-trade areas on the American continent at a historic moment when market-
economy systems are being widely adopted, are offering new prospects for integration, 
not only within North and South America but between the two. Both the United States 
and Brazil have separately named 2005 as the year when a vast free-trade area will cover 
the whole continent. This scenario is made realistic and will be facilitated by recent 
integration developments: Nafta with Canada, the US and Mexico; the G3 with Mexico, 
Colombia and Venezuela; the Andean Pact with Bolivia, Ecuador, Peru and Colombia; 
Mercosur with Brazil, Argentina, Paraguay and Uruguay; plus bilateral free-trade 
agreements (such as those linking Chile and individual G3, Mercosur and Andean Pact 
members). If we add to this picture the multilateral system under the aegis of the World 
Trade Organization, everything points to an end to most trade protection problems by the 
end of the century, on the American continent at least. 
In this context the main obstacle to Chile's full membership of Mercosur (the differing 
levels of protection) will gradually disappear and within the next ten years Chile is likely 
to accede formally to the group, which forms a natural market for its more advanced 
productive activities. 
APEC envisages a slower process in the Pacific (2015 being the target date for free trade) 
but, here too, bilateral agreements are expected to proliferate (possible agreements 
between Chile and New Zealand, for instance). But since the Asian countries have 
political and economic structures that are very different from Chile's, the integration 
process will probably take much longer than the one it is engaged in on the American 
continent. 
Chile's international economic integration is taking place in the context of clearly definable 
regional developments but the role of relations with Europe, despite undeniably important 
economic, political and cultural ties, is less clear today. 
If the present trend continues, there will be a loosening of both commercial and economic 
ties between Chile and the EU. It is desirable that the future development of the 
institutional framework for those ties should help correct this trend. This is what both 
parties want. 
The Community's plan to enter into negotiations with Mercosur, mainly with the aim of 
concluding an interregional agreement on trade and economic cooperation, leading in time 
to an interregional association, could reverse the trend and open up new perspectives for 
EU-Chile relations. 
II.2 The EU's strategic options 
The meetings of the Rio Group have highlighted the Community's support for the 
integration process in Latin America, which the Community is ready to further by drawing 
on its own experience of integration to provide institutional support and by promoting the 
reciprocal opening of markets. 
On the trade front, the EU intends to comply fully with the liberalization measures laid 
down in the GATT agreements and with its obligations to the World Trade Organization, 
and will avoid any treatment that may create discriminatory situations or trade deflections. 
Future relations between the EU and Chile must develop in this context and we have to 
examine the strategic options open to the EU at both interregional level (in connection 
with the negotiations with Mercosur) and in direct bilateral relations with Chile. 
A. Interregional options: EU-Mercosur-Chile 
Since it is likely that there will soon be an association agreement and a large degree of 
trade liberalization between Chile and Mercosur, leading to Chile's full membership of the 
group in the medium term, the EU's negotiations with Mercosur should be seen as 
decisive for EU-Chile relations as well. 
The fact that Chile and Mercosur are envisaging only an association arrangement rather 
than simple accession at present means that a specific agreement between them is needed 
to ensure coordination of the negotiations with the Community or to enable Chile to take 
part in the negotiations directly. 
Further points: 
- Since relations with the EU are of great importance for Chile, closer relations between 
the EU and Mercosur may well facilitate in turn the regional integration of Chile and 
Mercosur. 
- Taking on board specific Chilean interests in the EU-Mercosur negotiations would not 
complicate these negotiations since Chilean exports to the Community are less sensitive 
than those of Mercosur and Community exports to Chile meet with fewer barriers than 
in Mercosur. 
- Non-commercial areas of the EU-Mercosur negotiation (i.e. investments and services) 
would also be of direct interest to, and easily applicable by Chile, which on the whole 
has a more liberal regulatory framework than the Mercosur countries. 
From the EU's point of view, the options that would over time be most in tune with the 
region's geopolitical developments are: 
Option Al - multiple-speed convergence 
Chile would take part in the negotiations with Mercosur but each area of negotiation 
(political matters, trade, cooperation, investment, etc.) would be conducted 
independently. Political cooperation would, however, be full and immediate (Chile taking 
part in the political meetings between the EU and Mercosur from the outset). As for trade, 
the timetable for negotiations with Chile would be aligned on the agreements reached 
between Chile and Mercosur. 
This option would fit in with the EU's overall policy to support regional integration 
efforts. 
Implementing it would entail stepping up the triangular EU-Mercosur-Chile consultations. 
If this option were taken up, the Commission would put forward proposals to develop 
such a strategy after a thoroughgoing examination of the economic repercussions. 
Option A2 - joint negotiations 
If Chile and Mercosur bring forward the timetable for integration, the negotiating 
directives for Mercosur could be extended to Chile as a full partner in this regional 
integration project. 
B. BILATERAL EU-CHILE OPTIONS 
Since both parties are politically in favour of reviewing the 1990 framework agreement, it 
is worth seizing the opportunity to revise its provisions with a view to closer political and 
economic relations. The future developments clause in this agreement would allow us to 
extend significantly the areas of cooperation. Thus, taking as an example the provisions 
made for other partners at a level of economic development similar to Chile's, we could 
envisage the following operations using available budget funds: 
10 
- Economie cooperation: programmes to consolidate direct-investment promotion 
efforts, agreements between firms, technology transfers, a stepping-up of scientific and 
technical cooperation, especially in the fields of postgraduate education and research 
(possible Chilean participation in Community cooperation programmes). 
- Institutional support: programmes designed to modernize government and ease 
Chile's integration within Latin America, which could be extended to cover an 
alignment of legal systems and technical standards on the basis of mutual recognition. 
EU-Chile bilateral relations could also be stepped up in the political and trade arenas. 
Political cooperation: Chile and the EU share values such as democracy, human rights, the 
maintenance of peace and the role of the state in a market economy. Political cooperation 
within the Rio Group could thus be stepped up bilaterally and, if Mercosur so agreed, 
Chile could also take part in the EU-Mercosur dialogue. To this end, a joint political 
declaration could be issued by Chile and the EU, or by Chile, Mercosur and the EU, on 
the lines of what is being done to strengthen relations between the EU and other Latin 
American partners. 
On trade, other strategic options can be envisaged. 
The options set out above represent a deepening of current bilateral relations. This 
bilateral approach can be maintained or it can represent a stage along the road to 
developing the interregional framework described under A. 
Option Bl - active trade cooperation 
This strategy would entail use of the future developments clause of the framework 
agreement to introduce trade-related forms of cooperation. 
Bilateral measures could thus usefully make economic regulations less stringent, to the 
benefit of trade. (For instance, deregulation of investment, standards, certification, 
sectoral dialogue and administrative practices.) 
Two concrete examples might be: 
- a conflict prevention procedure (along the lines of the WTO's proposed new 
procedure); this would involve an early warning system which was compatible with 
and complemented the WTO's disputes settlement arrangements, 
- a formal procedural framework for reciprocal information concerning the respective 
Chile-Mercosur and EU-Mercosur negotiations (should the interregional options Al 
and A2 not be taken up). 
11 
Option B2 - agreement on political consultation 
and economic partnership 
The above considerations concerning the extension of technical and economic cooperation 
and the stepping-up of political dialogue are key elements of any agreement on political 
consultation and economic partnership. 
This option is the one that for the moment would seem to satisfy Chile's wishes. 
The trade provisions of an EU-Chile partnership agreement could include the progressive 
and reciprocal liberalization of trade, taking account of the sensitivity of certain products 
and ensuring the compatibility of any measures with the Community's international 
obligations, including its obligations to the WTO. 
The actual scope of such an agreement would probably not be so great in the long run, 
especially as large regional blocs are formed and with agreements tending to bring more 
and more trading partners under one umbrella. 
If this option were adopted, the scope of, and arrangements for, trade liberalization would 
be set out in the negotiating directives for an agreement to replace the 1990 framework 
agreement. 
IH. OPERATIONAL CONCLUSIONS 
In light of the above, and in accordance with the conclusions of the Essen European 
Council, the Commission asks the Council to take a decision on the strategic options set 
out in this communication. 
The Commission will wait for the outcome of the discussions within the Council and 
Parliament so that they can be taken into account, in the proposals that it will then put 
forward as soon as possible. 
12 
ANNEX I 
THE EUROPEAN UNION IS CHILE'S MAIN TRADING PARTNER 
1. Intensive trade relations 
Percentage of Chile's total trade in 1993: 
- with EU : 26% 
-with USA : 18% 
- with Latin America : 23% 
- with Asia : 22% 
2. Direct investment in up-and-coming sectors 
Percentages of total foreign direct investment in Chile's non-mining sectors, 1974 to 
1994 
from EU 
from USA 
from Latin America 
from Japan 44.3% 
24.7% 
17.1% 
2.6% 
3. Non-reciprocal aid support to improve living conditions 
Percentage of the total of non-refundable contributions received by Chile, 1990 to 
1994 
- from EU : 65.7% 
-fromUSA : 6.1% 
- from Japan .15.6% 
13 
ANNEXE II Chile's Trade in 1993 
(USS million) 
Exports 
FOB Importe 
CIF Balance 
ETJ 2444 (26%) 2085 (19%) 359 
MERCOSUR 1860 (20%) 
1089 (12%) 2457 (23%) 
1761 (16%) -597 
-672 
ISA 1655 (18%) 2477 (23%) -822 
Japan 1502 (16%) 883 (8%) 619 
Total 9416 10771 -1355 
•il 
Chilean Exports: Destination 
(US$ Million FOB) 
Total 
Exports EU USA Japan Latin 
America 
1984 
1985 
1986 
1987 
1988 
1989 
1990 
1991 
1992 
"993 3657,2 
3822,8 
4222,4 
5101,9 
7048,7 
8192,7 
8580,3 
9048,4 
10125,5 
9416,2 1060,7 
1226,0 
1441,3 
1668,8 
2591,4 
2945,4 
3203,1 
2881,3 
2931,7 
2443,9 951,2 
870,7 
915,2 
1140,5 
1393,2 
1456,0 
1469,2 
1596,3 
1649,4 
1655,2 407,-7 
392,5 
420,1 
561,3 
881,2 
1120,5. 
1388,2 
1644,0 
1707,3 
1502,3 550,0 
554,9 
717,3 
866,5 
925,0 
996,1 
1074,8 
1303,0 
1701,7 
1859,9 
Chilean Exports: Destination 
(% of total exports) 
EU USA Japan Latin 
America 
1984 
1985 
1986 
1987 
1988 
1989 
1990 
1991 
1992 
1993 29,0 
32,1 
34,1 
32,7 
36,8 
36,0 
37,3 
31,8 
29,0 
26,0 26,0 
22,8 
21,7 
22,4 
19,8 
17,8 
17,1 
17,6 
16,3 
17,6 11,1 
10,3 
9,9 
11,0 
12,5 
13,7 
16,2 
18,2 
16,9 
16,0 15,0 
14,5 
17,0 
17,0 
13,1 
12,2 
12,5 
14,4 
16,8 
19,8 
AS 
Chilean Imports: Origin 
(US$ Million CIF) 
Total 
Imports EU USA Japan Latin 
America 
1984 
1985 
1986 
1987 
1988 
1989 
1990 
1991 
1992 
1993 3480,5 
3006,4 
3156,7 
4023,3 
4924,0 
6734,2 
7272,1 
7685,8 
9670,2 
10771,4 626,7 
439,9 
588,7 
912,8 
989,4 
1327,9 
1518,4 
1407., 8 
1847,4 
2085,0 747,8 
654,6 
641,5 
773,1 
1002,1 
1347,9 
1373,4 
1581,9 
1984,9 
2477,4 312,7 
188,5 
296,4 
387,2 
391,8 
737,0 
568,4 
645,7 
964,7 
882,6 902,7 
787,6 
737,4 
955,7 
1364,4 
1764,2 
1704,6 
2051., 3 
2423,0 
2457,1 
Chilean Imports: Origin 
(% of total imports) 
EU USA Japan Latin 
America 
1984 
1985 
1986 
1987 
1988 
1989 
1990 
1991 
1992 
1993 18,0 
14,6 
18,6 
22,7 
20,1 
19,7 
20,9 
18,3 
19,1 
19,4 21,5 
21,8 
20,3 
19,2 
20,4 
20,0 
18,9 
20,6 
20,5 
23,0 9,0 
6,3 
9,4 
9,6 
8,0 
10,9 
7,8 
8,4 
10,0 
8,2 25,9 
26,2 
23,4 
23,8 
27,7 
26,2 
23,4 
26,7 
25,1 
22,8 
AG 
Trade Balance: Chile 
(Exports US$ Million FOB) 
(Imports US$ Million CIF) 
Trade Latin 
Balance EU USA Japan America 
1984 177 434 203 95 -353 
1985 816 786 216 204 -233 
1986 1066 853 274 124 -20 
1987 1079 756 367 174 -89 
1988 2125 1602 391 489 -439 
1989 1459 1618 108 384 -768 
1990 1308 1685 96 820 -630 
1991 1363 1474 14 998 -748 
1992 455 1084 -336 743 -721 
1993 -1355 359 -822 620 -597 

List of first 50 products imported into the EC from Chile 
1993 
(ECU '000) 
Total imports: 2 057 222 Annex in 
9 
10 
13 
14 
19 
20 
21 
22 
24 
25 
27 
28 
29 
30 
31 CN-heading 
7403 1100 
2603 00 00 
4703 21 00 
7403 19 00 
0806 10 15 
7112 90 00 
2301 20 00 
7108 12 00 
0303 78 10 
2601 12 00 
11 0808 10 89 
12 4703 29 00 
0808 20 33 
0808 10 83 
15 0302 69 65 
16 0810 90 10 
17 2613 10 00 
18 081120 31 
2905 1100 
7402 00 00 
1605 90 10 
7106 91 90 
23 0303 22 00 
0304 20 57 
2204 21 29 
26 1504 20 90 
0809 40 19 
2801 20 00 
0808 20 31 
2836 91 00 
0303 79 97 Value 
676.646 
147.843 
115.934 
104.315 
100.045 
61.869 
61.371 
52.813 
31.791 
30.234 
30.108 
24.984 
23.632 
21.512 
20.390 
20.253 
18.511 
16.461 
15.528 
15.485 
13.200 
12.942 
12.618 
12.239 
10.995 
10.380 
10.161 
8.668 
8.577 
8.528 
7.872 Share of total 
imports 
32,89% 
7,19% 
5,64% 
5,07% 
4,86% 
3,01% 
2,98% 
2,57% 
1,55% 
1,47% 
1,46% 
1,21% 
1,15% 
1,05% 
0,99% 
0,98% 
0,90% 
0,80% 
0,75% 
0,75% 
0,64% 
0,63% 
0,61% 
0,59% 
0,53% 
0,50% 
0,49% 
0,42% 
0,42% 
0,41% 
0,38% Tariff treatment 
zero duty 
zero duty 
zero duty 
zero duty 
18% 
zero duty 
5% 
zero duty 
15% 
zero duty 
6% 
zero duty 
5% 
6% 
15% 
11% 
zero duty 
18% 
13% 
zero duty 
20% 
zero duty 
2% 
15% 
4,5 % 
zero duty 
8% 
zero duty 
10% 
6,2% 
zero duty Cathodes and sections of cathodes 
Copper ores and concentrates 
Chemical wood pulp, soda or sulphate, (other 
than dissolving grades), semi-bleached or 
bleached, of conifers 
Refined copper (not coming under 7403.11.00 
to 7403.13.00), unwrought 
Table grapes, fresh, from 1 November to 14 
July (except for the variety Emperor (Vitis 
vinifera cv.) from 1 December to 31 January 
Waste and scrap of precious metal or of metal 
clad with precious metal (not coming under 
7112 10 00 and 7112 20 00) 
Flours, meals and pellets, offish or of 
crustaceans, molluscs or other aquatic 
invertebrates, unfit for human consumption 
Gold (including gold plated with platinum), 
unwrought forms, non-monetary 
Hake of the ^zax&Merluccius,, frozen 
Iron ores and concentrates, except for roasted 
iron pyrites, pyrites cinder Agglomerated 
Apples, fresh, from 1 April to 31. July 
(excluding the varieties Golden Delicious and 
Granny Smith) 
Chemical wood pulp, soda or sulphate, (other 
than dissolving grades), semi-bleached or 
bleached, other than from conifers 
Pears from 1 April to 31 July, fresh(*) 
Apples of the variety Granny Smith, fresh, from 
1 April to 31 July (*) 
Hake, fresh or chilled 
Kiwifruit, fresh (*) 
Molybdenum ores and concentrates, roasted 
Raspberries,unsweetened, including boiled of 
steamed, frozen (*) 
Methanol (methyl alcohol) 
Unrefined copper: copper anodes for electrolytic 
refining 
Molluscs, prepared or preserved 
Silver, including silver plated with gold or 
platinum, unwrought, of a fineness of not less 
than 999 parts per 1 000 
Atlantic salmon {Salmo solar) and Danube 
salmon {Hucho hucho), frozen (*) 
Fillets of hake of the genusMerluccius, frozen 
Wine, other than white wine, grape must with 
fermentation prevented or arrested by the 
addition of alcohol, with an alcohol content of 
13 % vol or less in containers with a content of 
2 I or less (excluding those of headings 2204 10 
11 to 2204 1 10), 
Fats and oils and their fractions offish (except 
for fish-liver oils) not chemically modified 
Plums from 1 October to 30 June, fresh (*) 
Iodine 
Pears, from 1 January to 31 March, fresh(*) 
Lithium carbonates 
Freshwater fish, fit for consumption, frozen 
(*) Products likely to be considered sensitive 
1} 
32 
33 
34 
35 
40 
41 CN-heading 
3102 50 10 
2608 00 00 
1005 10 15 
2616 9000 Value 
36 2834 2100 
37 1605 1000 
38 0304 2013 
39 081120 59 
9990 99 00 
8708 40 90 
42 51011100 
43 0813 30 00 
44 7112 1000 
45 7409 19 00 
46 2303 20 11 
47 0813 40 80 
48 1605 20 00 
49 0710 80 90 
50 7403 12 00 7.822 
7.335 
7.111 
7.055 
6.869 
6.855 
6.645 
6.351 
6.333 
5.958 
5.811 
5.370 
5.198 
5.111 
5.110 
5.028 
4.771 
4.761 
4.619 
1.820.018 Share of total 
imports 
0,38% 
0,36% 
0,35% 
0^4% 
0,33% 
0,33% 
0,32% 
0,31% 
0,31% 
0,29% 
0,28% 
0,26% 
0,25% 
0,25% 
0,25% 
0,24% 
0,23% 
0,23% 
0,22% 
88,47% Tariff treatment 
zeroduty 
zeroduty 
zeroduty 
zeroduty 
8% 
16% 
2% 
15% 
4,9% 
6,9 % 
zeroduty 
8% 
zeroduty 
6% 
zeroduty 
6% 
20% 
18% 
zeroduty Natural sodium nitrate 
Zinc ores and concentrates 
Maize seed, simple hybrids 
Precious metal ores and concentrates, excluding 
silver ores and concentrates 
Potassium nitrates 
Crab, prepared or preserved 
Fillets of Pacific salmon {Oncorhynchus spp), 
Atlantic salmon {Sabno salar) and Danube 
salmon {Hucho hucho), frozen 
Blackberries and mulberries, unsweetened, 
including boiled or steamed, frozen (*) 
Description not yet available 
Gearboxes for single axle tractors, vehicles for 
transporting 10 or more persons, including the 
driver, saloon cars, vehicles for the transport of 
goods and special purpose vehicles 
Shorn wool, not carded or combed 
Dried apples (*) 
Waste and scrap of gold, including metal dad 
with gold but exduding sweepings containing 
other precious metals 
Copper plates and sheets, refined, not in coils, 
of a thickness exceedingO, 15 mm 
Beet pub, with a dry matter content of not less 
than87%bywdght 
Dried fruit (exduding those coming under 
headings 0801 10 10 to 0808 20 98 and 0813 
10 00 to 0813 40 60 (*) 
Shrimps, prepared or preserved 
Vegetables (not falling under headings 071010 
10 to 0710 80 80) induding those cooked by 
steaming or boiling in water), frozen (*) 
Refined copper wire-bars 
(*) Products likely to be considered sensitive 
i-Z 
CHILI / EU TRADE (CLASSIFIED BY SECTION OF THE CUSTOMS TARIFF) 
* IMPORTS 
*CCTI 
* CCT II 
* CCT III 
* CCT IV 
*CCTV 
* CCT VI 
* CCT VII 
* CCT VIII 
* CCT IX 
*CCTX 
*CCT XI 
*CCT XII 
*CCT XIII 
* CCT XIV 
•CCTXV 
* CCT XVI 
*CCT XVII 
* CCT XVIII 
* CCT XIX 
•CCT XX 
* CCT XXI 
* 
•IMPORTS.TOT 1989 
VALUE 
MIO ECU 
127,36 
276,84 
19,26 
254,15 
213,85 
87,64 
,53 
3,24 
58,67 
103,40 
24,71 
1.73 
.57 
114,90 
1444,39 
2,59 
1,15 
1,79 
,08 
1,29 
3,42 
2751,61 %OF 
TOTAL 
4,6 
10,1 
,7 
9,2 
7,8 
3,2 
,1 
2,1 
3,8 
,9 
,1 
4,2 
52,5 
•1 
,1 
,1 
100,0 1989 
100 
100,0 
100,0 
100,0 
100,0 
100,0 
100,0 
100,0 
100,0 
100,0 
100,0 
100,0 
100,0 
100,0 
100,0 
100,0 
100,0 
100,0 
100,0 
100,0 
100,0 
100,0 
100,0 1990 
VALUE 
MIO ECU 
136,54 
357,13 
10,13 
206,92 
187,16 
74,09 
,18 
5,53 
71,93 
106,40 
26,43 
4,69 
,73 
122,74 
1258,92 
6,87 
3,78 
3,44 
,01 
2,25 
3,64 
2608,12 %OF 
TOTAL 
5,2 
13,7 
,4 
7,9 
7,2 
2,8 
,2 
2,8 
4,1 
1,0 
,2 
4,7 
43,3 
,3 
.1 
,1 
,1 
,1 
100,0 1989 
100 
107,2 
129,0 
52,6 
81,4 
87,5 
84,5 
34,1 
170,6 
122,5 
102,9 
106,9 
271,3 
128,7 
106,8 
87,1 
264,9 
327,3 
192,1 
16,4 
174,9 
106,3 
94,7 1991 
VALUE 
MIO ECU 
168,06 
457,75 
18,04 
187,33 
248,25 
73.83 
,76 
2.19 
62,82 
89,18 
22,76 
8,43 
.87 
102.44 
1054.76 
3,39 
10,48 
1,41 
,01 
3,14 
3,44 
2528,35 %OF 
TOTAL 
6,6 
18,1 
.7 
7,4 
9.8 
2,9 
,1 
2,5 
3.5 
.9 
.3 
4,1 
41,7 
.1 
,4 
,1 
.1 
,1 
100,0 1989 
100 
131,9 
165,3 
93,6 
73.7 
116,0 
84,2 
142,2 
67,5 
107,0 
86,2 
92,1 
488,0 
152,3 
89,1 
73,0 
130,6 
908,5 
78,7 
17,7 
244,2 
100,5 
91,8 1992 
VALUE 
MIO ECU 
145,83 
531,71 
11,22 
193,90 
294,55 
83,77 
.80 
2,22 
40,16 
137,66 
18,62 
4,54 
1,82 
98,49 
833,26 
4,57 
6,26 
3,10 
,11 
5,40 
6,88 
2434,73 %OF 
TOTAL 
6,0 
21,8 
,5 
8,0 
12,1 
3,4 
•1 
1,6 
5,7 
,8 
.2 
,1 
4,0 
34,2 
,2 
,3 
,1 
,2 
,3 
100,0 1989 
too 
114,5 
192,0 
58,2 
763 
137,7 
95,5 
150,8 
68,4 
68,4 
133,1 
75,3 
262,9 
319.2 
85,7 
57,6 
176,4 
542,6 
173,4 
135.4 
419,8 
200,9 
88,4 1993 
VALUE 
MIO ECU 
124.53 
341,79 
10,70 
121,18 
216,67 
61,09 
.24 
1,25 
19,42 
147,71 
17,57 
4,47 
r93 
133,82 
820.82 
5,74 
7,41 
2,81 
.00 
4,90 
6,53 
2057,22 %OF 
TOTAL 
6,1 
16,6 
,5 
5,9 
10,5 
3,0 
.1 
.9 
7.2 
.9 
,2 
6,5 
39,9 
,3 
.4 
.1 
,2 
.3 
100,0 1989 
100 
97,7 
123,4 
55.5 
47,6 
101,3 
69,7 
44,4 
38,6 
33,1 
142,8 
71,1 
258,7 
163,5 
116,4 
56,8 
221,3 
642,0 
157,0 
6,3 
380,5 
190,8 
74,7 
19 CCT 
CCT 
CCT 
CCT 
CCT 
CCT 
CCT 
CCT 
CCT 
CCT 
CCT 
CCT 
CCT 
CCT 
CCT 
CCT 
CCT 
CCT Section 
Section 
Section 
Section 
Section 
Section 
Section 
Section 
Section 
Section 
Section 
Section 
Section 
Section 
Section 
Section 
Section 
Section I 
II 
III 
IV 
V 
VI 
VII 
VII 
LX 
X 
XI xn 
XIII 
XIV xv 
XVI 
XVII 
XVIII 
CCT Section XIX 
CCT Section XX 
CCT Section XXI Live animals; animal products 
Vegetable products 
Fats and oils 
Prepared foodstuffs; beverages, spirits tobacco 
Mineral products 
Products of the chemical or allied industries 
Plastics and articles thereof; rubber and articles thereof 
Raw hides and skins, leather, furs 
Wood and articles of wood; charcoal; cork and articles of cork; manufactures of straw 
Substances used for the manufacture of paper and articles thereof 
Textiles and textile articles 
Footwear, headgear, umbrellas, parasols, feathers, artificial flowers; fans 
Articles of stone, plaster, cement, asbestos, mica or similar materials; ceramic products; glass and glassware 
Natural or cultured pearls, precious or semi-precious stones, precious metals, imitation jewellery; coins 
Base metals and articles of base metal 
Machinery and mechanical appliances; and electrical appliances 
Means of transport 
Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; clocks and watches; musical inst 
parts and accessories thereof 
Arms and ammunition; parts and accessories thereof 
Miscellaneous manufactured articles 
Works of art, collectors' pieces and antiques 
Bndget Heading COOPERATION WITH CHILE ANNEX IV 
f^^M'^ M&ISQIW;;-,*: liTiTr i vfe-ttSflfrjfe-. W&V*®Si 1994 
B7-3010 
Financial and technical cooperation 10.000.000 5.600.000 98.180 
B7-3011 
Economic Cooperation 618.814 3 1.259.000 4 1.000.000 2 560.700 4 1.741.227 7 
B7-3020 
Refugees 600.000 1 1.900.000 1 - - - • -
B7-5000 
ECIP * - 211.619 2 632.357 9 630.622 9 478.263 6. 
B7-5020 
Cooperation Agreements - • - - 50.750 2 594.000 3 38.900 1 
B7-5230 
Democratization - - • - - - 2.530.000 4 1.525.278 6 
B7-5040 
Environmental protection • - • - - - 1.073.016 4 435.000 2 
B7-5041 
Tropical forests - - • - • - - - - -
B7-5073 
NGO Chile 4.996.689 69 4.954.338 42 ^.499.668 34 4.846.303 43 3.841.873 52 
0 B7-5080 
Campaign against drug abuse - - - - 1.074.380 2 111.809 1 81.000 1 
B7-20 
Food aid 4.201.211 - 4.452.430 - 2.332.344 - 1.730.000 - - -
B7-510 
Emergency aid - - 130.000 1 - - 500.000 1 - -
B7-5046 
Fight against Aids - • 89.100 1 - - 423.000 2 -. -
B7-5010 
NGOs N 2.610.886 52 3.264.209 69 3.999.781 83 2.806.558 15 4.596.871 45 
B6-6224 
Life sciences and technologies 181.357 - 381.103 - 173.114 - 183.681 - 649.770 8 
B6-8371 
International cooperation on science and technology - - 1.317.875 8 1.800.681 11 2.379.000 22 1.774.000 11 
B4-1041 
Cooperation- in the energy field - • • - • • 129.675 1 • -
TOTAL GLOBAL 13.208.957 125 17.959.674 128 25.563.075 144 24.098.364 110 15.260.362 140 

ISSN 0254-1475 
COM(95) 232 final 
DOCUMENTS 
EN 11 
Catalogue number : CB-CO-95-265-EN-C 
ISBN 92-77-89530-6 
Office for Official Publications of the European Communities 
L-2985 Luxembourg 
^1