As one of Latin America’s fastest-growing economies over the past decade, Chile’s economy is very dependent on trade. And Canada has been quick to realize Chile’s potential.
In 1997, the Canada-Chile Free Trade Agreement (CCFTA) was signed, making Canada the first industrialized country to sign a FTA with Chile. Since that time, Chile has been dubbed a priority market under Canada’s Global Markets Action Plan (GMAP) and bilateral merchandise trade has quadrupled.
While there are many opportunities across a wide range of sectors that match Canadian capabilities, the forestry industry in particular is worth exploring.
Chilean forestry companies look to innovate
As one of the top 20 countries in the world for the production and commercialization of forest products, Chile’s three key players in the industry, Arauco, CMPC and Masisa, are facing increasing demand. In terms of basic economics, Chile must ensure that supply meets demand.
“Chilean companies are looking to improve their production processes with new and innovative products which will reduce their operational costs and increase yields and overall productivity” says Philippe Duford, EDC Senior Associate for the Resources Group. “As a global leader in forestry, Canada has already been through this phase of innovation and therefore has the expertise that Chile needs to be more efficient”.
And given Chile’s efforts to upgrade production processes, its forestry sector spells a great deal of opportunities for Canadian forestry suppliers looking to grow into this key market.
One place to start could be Expocorma, an international forestry trade fair taking place in Concepción in November 2015. Whether a company is looking to promote or sell its products, or simply to gain recognition within the forestry sector in Chile, Expocorma can be the start of that exporter journey.
More to follow on the Chilean forestry sector in November. Visit ExportWise.