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Chile is one of New Zealand's longest standing and closest friends in LatinAmerica. The New Zealand Embassy has been operating in Santiago since 1972. Chile established an Embassy in Wellington the same year. The two foreign ministries hold regular foreign policy consultations covering a wide range of bilateral and multilateral issues (last held in Santiago, March 2011).
Economic links, especially agriculture; energy, especially geothermal; and education are the three key themes in the relationship between New Zealand and Chile.
Bilateral trade between New Zealand and Chile is moderate – we produce essentially the same products at the same time of year. NewZealand’s exports to Chile in the year to December 2011 were worth NZ$62million and imports from Chile were worth NZ$65million (year to December 2011).
Chile is a significant destination for New Zealand investment, particularly in the agricultural and energy sectors. Fonterra owns a 99.4% share of Soprole, Chile’s largest dairy processor. There are also significant farming investments in southern Chile, for example, New Zealand company, Manuka, purchased Chile’s largest farm (19,000ha) in March 2008.
There has been significant New Zealand investment in Chile’s energy sector. Renewable energy is a promising sector considering Chile’s resources and expanding energy needs. New Zealand investment here includes investment by Mighty River Power in Geothermal developments. Greymouth Petroleum holds the rights to oil and gas development in a 9,000km2 area in the South of Chile.
The Trans-Pacific Strategic Economic Partnership Agreement (known as P4) was signed by New Zealand, Chile, Singapore and Brunei in 2005, and came into force for those countries in 2006. An Environment Cooperation Agreement and a Labour Cooperation Memorandum of Understanding, which had been negotiated as part of the P4 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 the P4 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”.
Negotiations for an expanded agreement – known as TPP, Trans-Pacific Partnership - including the United States, Australia, Peru and Viet Nam began in March 2010. Malaysia joined the negotiations during the third round in Brunei in October 2010. The most recent round was held in Dallas in May 2012. In June 2012, both Mexico and Canada joined the negotiations.
Chile has been a central focus in Latin America for NewZealand’s business interests particularly in the dairy and agri-business sectors, and increasingly in the renewable energy sector, especially in geothermal power.
A Joint Statement on energy cooperation was released by New Zealand and Chile Energy Ministers during the visit to New Zealand of then Minister Ricardo Raineri in June 2010. Subsequently, New Zealand and Chile have developed a “Forward Agenda” which covers cooperation in geothermal, biomass, biofuels, marine energy and energy efficiency, including through in-depth technical missions, ministerial visits, and attendance at relevant seminars and workshops.
A strategic alliance between New Zealand Trade and Enterprise and its Chilean counterpart, CORFO, was signed during President Bachelet’s visit to NewZealand in November 2006.
Chile’s then Minister of Agriculture (Jose Galilea) visited New Zealand in November 2010 to attend the International Dairy Federation General Assembly.
Under the Latin America Strategy, a Prime Minister’s Fellow from Chile - Luis Mayol who was then President of Chile’s Agriculture Society (SNA) - visited New Zealand for Fieldays in June 2010. Luis Mayol is now Chile’s Minister of Agriculture.
A “Forward Agenda” between the Chilean Ministry of Agriculture and NZ government agencies has been developed for 2012 with three main themes for agricultural co-operation: Science and Innovation, Education and Training, and Dairy Sector- Pastoral Farming.
Chile has been a key partner for New Zealand in the Global Research Alliance. A member of the Alliance since 2009, Chile is active in the croplands, livestock, cross-cutting, and governance groups.
New Zealand’s research relationship with Chile has been further deepened by their involvement in the FONTAGRO project, which is a Latin American research project on greenhouse gases that is supported by New Zealand.
The Chilean National Agricultural Research Organisation (INIA) and National Irrigation Commission visited New Zealand this year. The latter visit follows on from a visit to Chile by a Ministry of Primary Industry official to learn about the Chilean irrigation experience.
New Zealand and Chile have both signed the Multilateral Agreement on the Liberalisation of International Air Transportation (MALIAT) which supersedes the Open Skies Agreement signed in October 1998.
LAN Chile, Chile’s national airline, offers flights 6 days a week between Auckland and Santiago, Chile.
New Zealand signed a Double Tax Agreement with Chile in 2003 which entered into force in 2006.
There are special cultural links between New Zealand Maori and the people of Rapa Nui (Easter Island, under Chilean administration).
In late August 2012, the New Zealand Maori Arts and Crafts Institute is supporting a voyage from New Zealand to Rapanui (Easter Island) by two waka (traditional double-hulled canoes), guided by the stars, sun, moon, ocean currents, birds and marine life. The New Zealand Maori Arts and Crafts Institute has previously supported voyages on the other legs of the Polynesian Triangle (New Zealand to Hawaii; Hawaii to Rapanui).
On 30 November 2009, the Plaza Nueva Zelandiawas opened by the Ambassador and Mayor of Providencia in Santiago. The Plaza is a gift from the NewZealand Government to the people of Chile in the year of Chile's Bicentennial.The Plaza Nueva Zelandia aims to provide apermanent reminder of the friendship and partnership between New Zealand and Chile, as neighbours in the South-Pacific region. It was supported by the Cultural Diplomacy InternationalProgramme and the Latin America Strategy Fund.
Education is an important strand of the Chile-New Zealand bilateral relationship.
A bilateral arrangement on education cooperation was signed on 4 April 2004. A Scholarships Arrangement between Chile and NewZealand, was signed during former Foreign Minister Foxley’s July ’08 visit, and allows up to 300 scholarship students funded by the Bicentennial Fund for Human Capital Development from Chile to study in NewZealand per year.
A total of 11 Scholarships (6 MAs and 5 PhDs) were awarded in the 2011 year to Chilean students to study in New Zealand. This makes a total of 70 post graduate scholarships under the scheme so far.
New Zealand Development Scholarships are available to Chilean students with 4 scholarships awarded in 2011.
Almost all New Zealand universities and some polytechnics have cooperation agreements in place with counterparts in Chile.
An arrangement on technical cooperation for biodiversity work was signed in 2002 between Chile’s National Commission on the Environment and NewZealand’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. In October 2009, CONICYT sent a scientific delegation to New Zealand for the purpose of establishing collaborative linkages with New Zealand's research institutions and learning from New Zealand's research system and infrastructure.
A visa waiver agreement between Chile and New Zealand for visits of up to three months has been in place since 1999.
The Working Holiday Scheme, established in 2001, enables 1000 young Chileans and 200 young New Zealanders to visit our respective countries. The Scheme is so popular with young Chileans that the 1000 visas are snapped up within days. Enhancements to the scheme were made during a visit to Santiago by the Minister of Foreign Affairs: since October 2011 the scheme has been available to those aged up to 35, and provides for extended periods of study and work.
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Recent high level visits from New Zealand to Chile include the Minister of Foreign Affairs (August 2010) and a Parliamentary delegation led by the Speaker (June 2011).From Chile, the Minister of Labour (Evelyn Matthei) visited New Zealand in March 2011 to focus on industry training and the Minister for Environment (Maria Ignacia Benitez) visited New Zealand in September 2011 to focus on environmental cooperation, including environmental standards for geothermal energy.
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. New Zealand and Chile were cosponsors (along with Australia) of the South Pacific Regional Fisheries Management Organisation, which will shortly enter into force.
Chile and New Zealand work closely together in multilateral organisations such as APEC, WTO and now the OECD.
Chile and New Zealand are cooperating to address greenhouse gas emissions in the agricultural sector through the Livestock Emissions and Abatement Research Network (LEARN) and as members of the Global Research Alliance on Agricultural Greenhouse Gases.
Up to 17 New Zealand Development Scholarships are offered each year to all Latin America and Caribbean countries to which New Zealand is accredited. The scholarships will focus on sustainable economic development particularly agriculture and geothermal studies. Short Term Training Awards are also available (allowing up to one year study with maximum value of NZ$60,000) with a focus on sustainable economic development in particular agricultural development or targeting other areas of New Zealand comparative advantage.
Further details of the development relationship can be found on the website of the New Zealand Aid Programme
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. The Chief of the New Zealand Navy visited Chile in May 2011.
The Chilean Minister of Defence, Andrés Allemand, will visit New Zealand in June 2012 to exchange perspectives on security and defence issues.
Geography/Demography
| Land Area** | 756,946 sq km |
| Population** | 17.2 million (Economist Intelligence Unit 2012 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** | NZ$1 = 395 CLP [30 January 2013] |
| Political system** | Presidential Democracy |
| National government** | Sebastián Piñera |
| National legislature | Bicameral legislature (Congress): a Senate (the upper house) comprising 38 members elected for eight years and partly renewed every four years; and a Chamber of Deputies (the lower house), with 120 members who are all elected every four years |
| Last election | 13 December 2009 (run-off election 17 January 2010) |
| Next election due | 2013 |
| Main political parties
|
- National Renewal Party
- Democratic Independent Union (make up the governing centre-right coalition)
(make up the centre-left Concertación coalition that held power between 1990 and 2010) |
| Head of State | Sebastián Piñera |
| Head of Government | Sebastián Piñera |
| Key Ministers | Ministers as at 30 January 2013 |
President |
Sebastián Piñera |
Agriculture |
Luis Mayol |
Defence |
Rodrigo Hinzpeter |
Economy |
Juan Pablo Longueira |
Education |
Harald Beyer |
Energy |
Jorge Bunster |
Environment |
María Ignacia Benítez |
Finance |
Felipe Larraín |
Foreign Affairs |
Alfredo Moreno |
Secretary General of the Government |
Cecilia Pérez |
Secretary General of the Presidency |
Cristián Larroulet |
Health |
Jaime Mañalich |
Housing |
Rodrigo Pérez |
Interior & Public Security |
Andrés Chadwick |
Justice |
Patricia Pérez |
Labour |
Evelyn Matthei |
Mining |
Hernán de Solminihac |
National Council for Culture and Arts |
Luciano Cruz-Coke |
National Heritage |
Rodrigo Pérez |
Social Development |
Joaquín Lavin |
Public Works |
Loreto Silva |
Transport & Tecommunications |
Pedro Pablo Errázuriz |
National Services for Women |
Carolina Schmidt |
Country Statistics
| 2009 | 2010 | 2011 | ||||
| GDP | ||||||
| Nominal GDP (US$ bn) | 160.9 | 203.4 | 248.6 | |||
| Nominal GDP (Ps bn) | 90,220 | 103,806 | 120,233 | |||
| Real GDP growth (%) | -1.7 | 5.2 | 6.0 | |||
| Expenditure on GDP (% real change) | ||||||
| Private consumption | 0.9 | 10.4 | 8.8 | |||
| Government consumption | 7.5 | 3.3 | 3.9 | |||
| Gross fixed investment | -15.9 | 18.8 | 17.6 | |||
| Exports of goods & services | -6.4 | 1.9 | 4.6 | |||
| Imports of goods & services | -14.6 | 29.5 | 14.4 | |||
| Origin of GDP (% real change) | ||||||
| Agriculture | -2.7 | -2.5 | 11.8 | |||
| Industry | -4.5 | 1.5 | 3.5 | |||
| Services | 0.7 | 6.3 | 6.9 | |||
| Population and income | ||||||
| Population (m) | 16.9 | 17.1 | 17.2 | |||
| GDP per head (US$ at PPP) | 14,339 | 15,137 | 17,355 | |||
| Recorded unemployment (av; %) | 9.6 | 7.1 | 6.6 | |||
| Fiscal indicators (% of GDP) | ||||||
| Public-sector revenue | 20.3 | 22.4 | 22.3 | |||
| Public-sector expenditure | 24.8 | 22.7 | 20.8 | |||
| Public-sector balance | -4.5 | -0.3 | 1.5 | |||
| Gross public debt | 6.2 | 9.2 | 11.2 | |||
| Prices and financial indicators | ||||||
| Exchange rate Ps:US$ (end-period) | 506.43 | 468.37 | 521.5 | |||
| Consumer prices (end-period; %) | -1.5 | 3 | 4.4 | |||
| Producer prices (av; %) | 0.3 | -2 | 12.2 | |||
| Stock of money M1 (% change) | 22.9 | 20.6 | 11.8 | |||
| Stock of money M2 (% change) | -5.3 | 10.9 | 18.1 | |||
| Money market interest rate (av; %) | 0.5 | 1.8 | 5.3 | |||
| Current account (US$ m) | ||||||
| Trade balance | 14,117 | 15,855 | 10,720 | |||
| Goods: exports fob | 54,004 | 71,028 | 81,640 | |||
| Goods: imports fob | -39,888 | -55,174 | -70,920 | |||
| Services balance | -1,444 | -1,019 | -2,392 | |||
| Income balance | -11,666 | -15,423 | -14,095 | |||
| Current transfers balance | 1,616 | 4,390 | 2,420 | |||
| Current-account balance | 2,570 | 3,802 | -3,347 | |||
| External debt (US$ m) | ||||||
| Debt stock | 74,066 | 87,204 | 96,071 | |||
| Debt service paid | 11,886 | 14,561 | 23,219 | |||
| Principal repayments | 11,160 | 13,732 | 20,903 | |||
| Interest | 726 | 829 | 2,316 | |||
| International reserves (US$ m) | ||||||
| Total international reserves | 25,292 | 27,828 | 41,944 | |||
|
Sources: Banco Central de Chile, Instituto |
||||||
| NZ Exports (FOB) | Total: NZ$62 Million (year to December 2011) |
| Main Exports | Harvesting and threshing machinery NZ$6.9 Cheese NZ$6.3 Butter, dairy spreads NZ$4.6 m Seeds, fruit and spores NZ$6.2 m Agriculture, horticulture, etc machinery NZ$5.9 m |
| NZ Imports (CIF) | Total: NZ$71 million (year to December 2011) |
| Main Imports | Fishing vessels and factory ships NZ$ 18.5 m
Grapes NZ$10.2 m Plywood, veneered panels etc NZ$9.9 m Fruit and Nuts NZ$4.7m Preparations used in animal feeding NZ$3.5m Jams and Marmalades NZ$2.7 m |
The New Zealand Embassy in Santiago is responsible for Chile as well as Colombia and Peru [external link].
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 [external link].
Further enquiries may be directed to:
Consular Division:
Tel: +64 4 439 8000
Fax: +64 4 439 8532
cons@mfat.govt.nz
New Zealanders and Chileans travelling to each other's country for less than three months do not need to apply for a visa beforehand.
[1] Palacio La Moneda, is the seat of the President of the Republic of Chile. It also houses the offices of three cabinet ministers: Interior, General Secretariat of the Presidency and General Secretariat of the Government. It occupies an entire block in downtown Santiago, in the area known as Civic District. Photo courtesy David Luxton
