Not fearing free trade, lowering tariffs and facilitating business development are some of the ingredients the Chilean export model that Central America could follow.

In an interview with Elfinancierocr.com, ProChile‘s director, Roberto Paiva, explained that one of the main reasons behind the success of his country’s foreign trade model is the high degree of trade liberalization. Not only for having reduced tariffs, but also for   “… ‘having negotiated trade agreements. We have agreements with Europe and much of Asia. We don’t yet have Africa. This opening not only lowers tariffs but brings us closer to the market and the business’. “

Flexibility and innovation are other keys when diversify the export supply.  Chile is not a producer of tea, but it does export it, “… ‘because the TLC permits it. You have to look at trade liberalization without fear. China managed to make cheaper bikes arrive in Chile which helped workers, for example.’ “

Regarding the advantages of being part of the Pacific Alliance, Paiva explained that one of them is that “… ‘it is not only that tariffs are removed but raw materials from partners are considered from each country’.” For example, “… I can take Peruvian cotton, process it in Chile and sell it as Chilean. It is a trade integration mechanism that only offers advantages, even more so for small countries. In order to grow you have to be integrated into markets, cheaper raw materials can be obtained. “

Source: elfinancierocr.com