|
|
|
|
|
|
THE COMPETITION IN 1997
U.S. and
Competitor Expenditures on Export Promotion and
Export Subsidies for Agricultural, Forestry and Fishery Products
Chile
Chile's agricultural sector (including forestry and fisheries products) now accounts for over 35 percent of total export earnings. During 1997 direct government support to export promotion was estimated at $9.9 million. Private sector contributions to the Export Promotion Fund and to the Chilean Exporters Association are estimated at $7.2 million.
In general, export promotion programs are carried out through the government agency, PROCHILE, whose operations are divided into 10 sections, of which 3 are related to the agricultural complex. PROCHILE's focus is increasingly directed toward new or emerging markets, particularly in Latin America and Asia. PROCHILE's activities benefit all agricultural products. PROCHILE provides information and trade leads to exporters; conducts trade missions; and manages Chile's participation in international trade fairs. From its general budget, PROCHILE operates 39 trade offices abroad, of which four are located in the United States. In addition, PROCHILE operates 13 offices in Chile to provide local industry with improved access to the export market.
The government of Chile initiated an Export Promotion Fund for agricultural export promotion in 1995 to assist agricultural groups to develop either new markets for traditional products, or to promote new-to-market products. In 1997, this fund totaled $17.1 million, with contributions from the government and the private sector as noted above. The fund provides grants for export promotions based on applications from producer and exporter associations or regional associations or governments. Agricultural products that benefit from the fund include fresh fruit, agro-industrial products, wine, and processed foods. For 1997 the projects accepted for funding will emphasize diversification of exports and promotion of new products, and a major emphasis is being placed on projects form Regions outside the Santiago Metropolitan Region.
A new administrative mechanism was also piloted in 1997; providing funds directly to private sector organizations which are then responsible for managing promotion activities, instead providing funds on a project-by-project basis. One of these pilot programs was with the Federation of Chilean Food Processors and Agro-industrialists (Fepach). Fepach received about $1 million which it used to promote frozen and dehydrated products in Europe, juices and canned products in North America and Asia and dehydrated and canned products in Latin America. It used trade missions and international trade fairs as its primary promotional tools.
Among PROCHILE’s agricultural projects thus far are generic promotional campaigns for fruits in the United States and European. Fruits promoted include kiwifruit, berries and papaya. Wine is also promoted in a number of countries and dairy products are promoted in Peru and Venezuela.
Another device Chile uses to encourage exports by small and medium sized companies is a simplified duty drawback system designed to refund duties paid on imported inputs without creating an excessive documentation burden. "Non-traditional" products with total export value under $21 million are given a refund of between three and ten percent of the FOB value of their exported merchandise. As the total export value for a product approaches $21 million the percent refunded declines. It is eliminated once annual exports exceed the $21 million level. In 1995, rebates for agricultural products totaled approximately $30 million. Chile has agreed to eliminate this program in 2003 as part of its Uruguay Round commitments.
|
|