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Chile is one of New Zealand's longest standing and closest friends in Latin America. The New Zealand Embassy has been operating in Santiago since 1972. Chile established an Embassy in Wellington the same year. In November 2002, celebrations of the 30th anniversary of the establishment of the Embassy in Chile included a visit to Santiago by Dame Malvina Major. The two foreign ministries hold regular foreign policy consultations covering a wide range of bilateral and multilateral issues.
The Trans-Pacific Strategic Economic Partnership Agreement (or TransPac, formerly known as P4) was signed by New Zealand, Chile, Singapore and Brunei in 2005, and came into force for those countries in 2006. A binding Environment Cooperation Agreement and a binding Labour Cooperation Memorandum of Understanding, which had been negotiated as part of the TransPac package, were signed concurrently.
On entry into force, duties were eliminated on 90% of New Zealand’s exports to Chile, (representing an immediate duty saving of NZ$1.9million). All of Chile’s remaining tariffs on New Zealand’s exports will be phased out by 2017. In return New Zealand will phase out all its tariffs by 2015.
One of the objectives of TTP was to create a trade agreement that could be seen as a model within the Asia-Pacific region and could potentially attract new members. The agreement is open to accession “on terms to be agreed among the parties, by any APEC economy or other state”.
On 22 September 2008, comprehensive negotiations for the United States to join TransPac were launched. On 20 November 2008, it was announced that Australia and Peru also intend to participate in negotiations. The first round of negotiations was scheduled to take place in March 2009, but has been postponed to allow the US Administration time to conduct a general review of US trade policy.
Read more on the TransPac page of this website.
A strategic alliance between New Zealand Trade and Enterprise and its Chilean counterpart, CORFO, was signed during President Bachelet’s visit to New Zealand in November 2006. This has further committed both agencies to promote and facilitate commercial partnerships. Chile has been a central focus in Latin America for New Zealand’s business interests particularly in the dairy and agri-business sectors.
Trade in exports to Chile rose from NZ$51.649million in December 2007 to NZ$76.09 million for the year to June 2008. Imports were also up in the same period, from NZ$37.741 million to NZ$42.37 million.
A Primary Sector Cooperation Agreement was signed in May 2004. New Zealand Trade and Enterprise’s Food Value Chain project provides additional focus in the agri-tech and food sectors. Chile is also looking to New Zealand to provide training for farm workers and managers.
An Open Skies Agreement was signed in October 1998, although this was subsequently suspended when both New Zealand and Chile signed the Multilateral Agreement on the Liberalisation of International Air Transportation (MALIAT).
New Zealand signed a Double Tax Agreement with Chile in 2003 which entered into force in 2006.
A bilateral arrangement on education cooperation was signed on 4 April 2004. The Trans-Pacific Partnership (TransPac) of May 2005 makes provision for trade in education services between Chile and New Zealand. A further bilateral scholarships arrangement was signed on 31 July 2008, and makes provision for up to 300 Chilean bicentennial scholarships holders to study in New Zealand per year.
An Education Counsellor for Latin America was appointed to work in the New Zealand Embassy in Santiago in July 2007.
Almost all New Zealand universities and some polytechnics have cooperation agreements in place with counterparts in Chile.
Victoria University has agreements with Conicyt (Chile’s National Commission for Science and Technology); the University of Chile, the Catholic University of Chile, and the University of Valparaiso. Auckland University has agreements with the University of Chile and the Catholic University of Chile, and sends language students to the Catholic University of Valparaiso. AUT has agreements with the Catholic University and the Universidad Mayor. Lincoln University has agreements with the Catholic University and the Universidad Austral. Massey University has an agreement with the Universidad Austral. Otago University has agreements with the University of Chile, the Catholic University of Chile, and the Universidad Adolfo Ibanez.
In 2007, 454 Chilean students studied in New Zealand including: 49 students in compulsory education; 96 Chilean students in universities and polytechnics; and 309 in Private Training Establishments (including English language providers). Three Chilean students were awarded New Zealand International Doctoral Research Scholarships (NZIDRS) in 2005. Chilean students have also studied in New Zealand under Presidential scholarships awarded by Chile’s Ministry of Planning. The New Zealand Agency for International Development (NZAID) offers up to two New Zealand Development Scholarships each year to Chileans.
An arrangement on technical cooperation for biodiversity work was signed in 2002 between Chile’s National Commission on the Environment and New Zealand’s Department of Conservation.
In 2002 an agreement on science and technology cooperation was signed between MORST and the Chilean science and technology agency CONICYT.
Chilean scientists are members of the LEARN (Livestock Emissions Abatement Research Network) and have participated in conferences in New Zealand in 2007 and Uruguay in July 2008.
A visa waiver agreement between Chile and New Zealand for visits of up to three months has been in place since 1999. A working holiday scheme was introduced in 2001 in order to promote exchanges between young people from both countries (the first agreement of its type for New Zealand with a Latin American country). Under the Working Holiday Scheme, 1,000 young Chileans may visit New Zealand and 200 young New Zealanders may visit Chile for one year on a working holiday. The demand from Chile has been so strong that New Zealand has unilaterally expanded the scheme, which originally provided for 200 places, to allow 1,000 young Chileans to visit New Zealand.
The direct daily air service between Auckland and Santiago (operated by LAN Chile and Qantas) has greatly facilitated travel between the two countries.
There are special cultural links between New Zealand Maori and the people of Rapa Nui (Easter Island, under Chilean administration). These links include a school exchange programme (with Turakina Maori Girls’ College) supported by the New Zealand Government’s Latin America Strategy Fund and, at the tertiary level, a research relationship established by Otago University Maori Studies with Rapa Nui counterparts.
Under the Latin America Strategy, Dr Eugenio Tironi Barrios, a Chilean sociologist and public relations specialist, visited New Zealand as a Prime Minister’s Fellow in May 2007. Dr Tironi’s visit focused on issues related to social cohesion, national identity and national well-being. top of page
New Zealand and Chile maintain close contact in a number of multilateral fora on issues such as the law of the sea, nuclear disarmament, Antarctica, human rights, fisheries and agricultural trade. The first multilateral foreign policy talks were held in March 2008 in Santiago. New Zealand and Chile are cosponsors (along with Australia) of the South Pacific Regional Fisheries Management Organisation. Chile hosted the International Whaling Commission in Santiago in June 2008.
The New Zealand Embassy in Santiago operates a Head of Mission Fund to support small scale and grassroots development assistance projects. Post-graduate scholarships are offered to Chileans to study in New Zealand, most commonly in agriculture-related fields.
The Latin America Development Programme run by the New Zealand Agency for International Development (NZAID) includes Chile. It focuses on sustainable rural livelihoods and governance. In addition to several smaller projects, NZAID is supporting a multi-year project to strengthen the capability of indigenous Huilliche (Mapuche) communities in southern Chile to participate in local development processes and improve their livelihoods through tourism. This project won a President’s bicentennial award in December 2007.
See full details of the development relationship on the NZAID website.
An arrangement on naval cooperation was signed in July 1996 to facilitate exchanges of information between the Chilean Navy and the Royal New Zealand Navy.
There were few exchanges between New Zealand and Chile in the 1970s and 1980s at the time of the Chilean military regime. But since the return of democracy in Chile, there has been new momentum in the relationship. The establishment of the New Zealand Government’s Latin America Strategy in 2000 has provided a valuable framework for this engagement.
| Land Area | 756,946 sq km |
| Population | 16.6 million (Chile Reserve Bank 2007 estimate) |
| Capital City | Santiago de Chile (6 million) |
| Religion | Catholic (67.7%), Protestant/Evangelical (15. 1%) (2002 census) |
| Official Language | Spanish |
| Currency | Chilean peso |
| Exchange Rate | US$1 = 610.05CLP [10 February 2008] |
Political system |
Presidential Democracy |
National government |
Michelle Bachelet of the Partido Socialista (PS) heads the Concertación coalition |
National legislature |
Bicameral legislature (Congress): a Senate (the upper house) comprising 38 members elected for eight years and partly renewed every four years; and a Chamber of Deputies (the lower house), with 120 members who are all elected every four years |
Last election |
1 April 2005 |
Next election due |
11 December 2009 |
Head of State |
Michelle Bachelet Jeria |
Head of Government |
Michelle Bachelet Jeria |
Key Ministers |
Ministers as at 1 May 2009 |
| President: | Michelle Bachelet Jeria (PS) |
| Agriculture: | Marigen Hornkohl (PDC) |
| Defence: | Francisco Vidal (PPD) |
| Economy: | Hugo Lavados (PDC) |
| Education: | Mónica Jiménez de la Jara (independent) |
| Energy: | Marcelo Tokman (PPD) |
| Environment: | Ana Lya Uriarte (PS) |
| Finance: | Andrés Velasco (independent) |
| Foreign affairs: | Mariano Fernández (PDC) |
| General secretary of the government: | Carolina Tohá (PPD) |
| General secretary of the presidency: | José Antonio Viera-Gallo (PS) |
| Health: | Álvaro Erazo (PS) |
| Interior & cabinet chief: | Edmundo Pérez Yoma (PDC) |
| Justice: | Carlos Maldonado (PRSD) |
| Labour: | Claudia Serrano (PS) |
| Mining: | Santiago González (PRSD) |
| National property: | Romy Schmidt (PPD) |
| National service for women: | Laura Albornoz (PDC) |
| Planning: | Paula Quintana (PS) |
| Public works: | Sergio Bitar (PPD) |
| Transport & communications: | René Cortázar (PDC) |
| Central Bank president : | José de Gregorio(PDC) |
| Main political parties | National Renewal Party |
| Democratic Independent Union | |
| (make up the right wing Alianza Coalition) | |
| Christian Democrat Party | |
| The Party for Democracy | |
| The Radical Social Democratic Party | |
| The Socialist Party | |
| Communist Party | |
| Humanist Party | |
| (make up the centre-left Concertación coalition that has held power since 1990) | |
| 2008 | 2009 | 2010 | |
| GDP | |||
| Nominal GDP (US$ bn) | 169.5 | 146.3 | 146.9 |
| Nominal GDP (Ps bn) | 88,535 | 88,594 | 93,947 |
| Real GDP growth (%) | 3.2 | -0.8 | 2 |
| Expenditure on GDP (% real change) | |||
| Private consumption | 4.3 | -2 | 1.8 |
| Government consumption | 4 | 8.1 | 4 |
| Gross fixed investment | 19.5 | -14.3 | 2 |
| Exports of goods & services | 3.1 | -9.6 | 0.6 |
| Imports of goods & services | 12.9 | -14.3 | 0.2 |
| Origin of GDP (% real change) | |||
| Agriculture | 2.1 | 4 | 3.8 |
| Industry | 0.7 | -2 | 1.8 |
| Services | 3.9 | -0.4 | 2 |
| Population and income | |||
| Population (m) | 16.8 | 16.9 | 17.1 |
| GDP per head (US$ at PPP) | 14,493 | 14,332 | 14,515 |
| Recorded unemployment (av; %) | 7.8 | 9.7 | 10.8 |
| Fiscal indicators (% of GDP) | |||
| Public-sector revenue | 26.4 | 20.8 | 21 |
| Public-sector expenditure | 20.7 | 24.1 | 22.3 |
| Public-sector balance | 5.7 | -3.3 | -1.3 |
| Net public debt | 5.2 | 9.5 | 10.7 |
| Prices and financial indicators | |||
| Exchange rate Ps:US$ (end-period) | 629.11 | 630.21 | 648.46 |
| Consumer prices (end-period; %) | 7.1 | 2.5 | 3.2 |
| Producer prices (av; %) | 16.7 | 5.7 | 4.3 |
| Stock of money M1 (% change) | 6.8 | 5.9 | 8.7 |
| Stock of money M2 (% change) | 18.1 | 6.3 | 10 |
| Money market interest rate (av; %) | 8.3 | 3.1 | 2.6 |
| Current account (US$ m) | |||
| Trade balance | 8,846 | 5,073 | 5,981 |
| Goods: exports fob | 66,456 | 48,768 | 51,628 |
| Goods: imports fob | -57,610 | -43,695 | -45,646 |
| Services balance | -646 | -484 | -1,246 |
| Income balance | -14,568 | -10,011 | -10,648 |
| Current transfers balance | 2,924 | 2,817 | 2,829 |
| Current-account balance | -3,440 | -2,606 | -3,083 |
| External debt (US$ m) | |||
| Debt stock | 65,719 | 60,246 | 60,680 |
| Debt service paid | 7,462 | 7,072 | 7,080 |
| Principal repayments | 6,095 | 6,514 | 6,359 |
| Interest | 1,367 | 557 | 722 |
| International reserves (US$ m) | |||
| Total international reserves | 23,078 | 18,099 | 15,730 |
Sources: Banco Central de Chile, Instituto, Nacional de Estadisticas, IMF, International Financial Statistics.
(c) Economist Intelligence Unit 2009
| NZ Exports (FOB) | NZ$44,856,866 (2008 year to date) |
| Main Exports | Coal NZ$19.3 |
| NZ Imports (CIF) | NZ$21,647,598 (2008 year to date) |
| Main Imports | Grapes NZ$8.0 Copper NZ$3.5 Plywood NZ$2.5 Fish fillets and meat NZ$2.5 Fruit and Notes, frozen NZ$2.4 |
The New Zealand Embassy in Santiago is responsible for Chile (as well as Colombia and Peru)
The Chilean Embassy in Wellington is responsible for New Zealand.
The New Zealand government's Safe Travel website has comprehensive travel information including advice on the safety and security of travel to Chile.
Further enquiries may be directed to:
Consular Division
Tel: +64 4 439 8000
Fax: +64 4 439 8532
New Zealanders and Chileans travelling to each other's country for less than three months do not need to apply for a visa beforehand.
