Image
Fresh or dried pineapple, processed sugar cane, prepared or preserved fruit, starch residue, prepared foods,and glass and plastic containers are some of the products Colombia can export with tariff benefits, to be transformed in Chile and, in turn, exported to countries of the Asia Pacific region.
These are the results of an analysis undertaken by PROCOLOMBIA on production chains between Colombia and Chile. The study seeks to generate new business opportunities for local entrepreneurs working with these types of raw materials and to make the most of the free trade agreement that has been in place between the two countries since 2009.
" This study seeks to identify which value added products produced in Colombia could serve as resources for the Chilean industry. We found, for example, that fruit produced in Colombia, such as pineapple, whether fresh or dried, can become a supply for juice companies in Chile, that can then export the product to Japan," explains Maria Claudia Lacouture, PROCOLOMBIA president.
To identify the opportunities for these materials, exports both from Colombia to Chile as well as from Chile to the countries of the Asia Pacific region were taken into account, as well as the rules of origin, the access conditions, and the tariff benefits stipulated in the trade agreements of both countries.
Chile is one of the most integrated countries in the region. It has 23 trade agreements with 60 countries and, in addition, requires supplies and raw materials for its industry that Colombia can provide with tariff advantages.
" The production chains strengthen our export promotion strategies and are important not only for increasing trade exchange between Colombia and Chile, but also with the other member countries of the Pacific Alliance (Mexico and Peru)," Lacouture added.
Fresh or Dried Colombian Pineapple to Be Sold as Juice in China
Chile is the ninth-largest provider of fruit and vegetable juice to China, a country that imported USD 13.8 million worth in 2011. Colombia is not an exporter to China. The trade agreement between Chile and the Asian country permits Chile to export these products with tariffs that vary between 0% and 9%.
Processed Sugar Cane for the Production of Fermented Beverages
Cider, pear cider and agave are some of the products Chile could produce with Colombian processed sugar cane, to be sold to Japan, which imported USD 278.6 million of product in 2012.
Other Prepared or Preserved Fruits, Natural or in Syrup
These are supplies Chile requires for the production of compotes, jams, marmalades, purees and fruit pastes to be exported to New Zealand. Chile positioned itself as the number one provider there of these products in 2012.
Other Food Preparations for Producing Jams, Marmalades and Fruit Pastes
Chile is the third-largest exporter of these products to Japan, which imported USD 41.6 million globally of these types of foods in 2012.
Starch Residue for the Preparation of Fish or Crustacean Flour or Pellets
China would be the destination of products such as flour, powder and pellets made from fish, crustaceans or shellfish, which Chile can produce with starch residue exported from Colombia. In 2012, this Asian country was the largest importer of this type of flour and pellets, with global purchases reaching USD 1,693 million.
Mixtures of Aromatic Substances Transformed into Cosmetics for Australia
Chile, as the number 55 provider of cosmetic products to Australia, has no tariff for entering the Oceanic country. This is an opportunity for Colombia to become a provider of these substances for Chile' s cosmetics industry.
Carboxymethyl Cellulose and its Raw Salts Producing Paper and Cardboard
As the second-largest exporter of paper and multi-layered cardboard to Australia in 2012, Chile purchased USD 3,212 million in carboxymethyl cellulose and its raw salts from Colombia. Chile pays no tariffs in Australia for the final product.
Canisters, Bottles and Other Glass Containers for Fruit Juice Packaging
Japan imported juices of all types of fruits and vegetables for USD 181.6 million in 2011. Chile represented the number 8 provider of this product that year. No Colombian exports to this Asian country are recorded.
Colombian Transportation Articles or Plastic Packaging as Finished Product for Pet Food Preparations
The finished product would have New Zealand as its destination, a country that purchased USD 99.2 million in 2012, with Chile as the fifth-largest provider. There is no tariff for pet food preparations exported by Chile to New Zealand.
