pacific alliance

The Chilean-Indonesian Chamber of Commerce brings to light the key events shaping the economic landscape of Chile. This week's focus is on agricultural threats, cherry exports, and the signing of a significant trade agreement.

Agricultural Threats: The beginning of 2025 saw a potential threat to Chile's agricultural sector. A group of Argentine tourists, attempting to enter Chile, were found carrying fresh vegetables infested with fruit fly larvae, a dangerous pest that threatens the country's crops. The Agricultural and Livestock Service (SAG) seized and analyzed the vegetables, confirming the presence of the pest. The SAG had previously launched a nationwide campaign to eradicate the fruit fly, releasing sterile insects to reduce reproduction and imposing a fruit quarantine around detected outbreaks.

Cherry Exports: The cherry industry in O'Higgins is looking to the Chinese New Year to help reverse a decline in prices. Despite an expected increase of 50.5% in exports for the 2024-2025 season, the market has faced significant price drops in China, which receives 92.4% of the exports. The Pacific South Terminal in Valparaíso reported an increase of 66% in the total tons of cherries moved during the 2024-2025 season, compared to the previous one.

However, not all export news was positive. The Atacama Region experienced a 4.5% year-on-year decrease in exports in November 2024, according to a report from the National Institute of Statistics (INE). The mining sector, which primarily exports copper and iron, was most affected by this decline.

Trade Agreement: Chile is on the verge of signing a trade agreement with Singapore, the third strongest economy in Southeast Asia. The Chilean Chamber of Deputies approved the Free Trade Agreement signed between the Pacific Alliance countries and Singapore. This agreement is expected to bring significant benefits to the Alliance and Chile, promoting trade, technology and knowledge transfer, foreign investment, export diversification, and the generation of productive chains.

The Office of Agricultural Studies and Policies (Odepa) reported that the agricultural trade balance grew by 27% in 2024, reaching US$ 11.756 billion. This growth is attributed to the significant demand for Chile's product offerings in international markets, as well as the country's favorable phytosanitary conditions.

• Picudo rojo, mosca de la fruta y gripe aviar: Plagas amenazan con llegar a Chile por los viajeros (Eldesconcierto.cl)
• Empresas exportadoras de cerezas en O'Higgins miran al Año Nuevo chino para revertir caída de precios (Eltipografo.cl)
• EN NOVIEMBRE DE 2024, LAS EXPORTACIONES DE LA REGIÓN DE ATACAMA DISMINUYERON 4,5% INTERANUALMENTE – Tierramarillano – Noticias de Atacama y Chile (Tierramarillano.cl)
• Odepa: Balanza comercial silvoagropecuaria creció 27% en 2024 – Simfruit (Simfruit.cl)
• Terminal Pacífico Sur de Valparaíso finalizó temporada de exportaciones de cerezas 2024-2025 – Simfruit (Simfruit.cl)
• Chile ad portas de firmar acuerdo con Singapur, la tercera economía más fuerte del sudeste asiático (Eldesconcierto.cl)

The Indo-Chilean Chamber of Commerce and Culture has been closely monitoring the recent developments in the economic and trade relations between Indonesia and Chile. This week's news reflects the strengthening of ties and the potential for growth despite some challenges.

According to the Directorate of Studies of the Undersecretariat of International Economic Relations (Subrei), Chile's trade exchange experienced a contraction of 1.7% compared to the same period in 2023, totaling USD 60.220 billion. However, the country's exports, which amounted to USD 33.062 billion, saw a slight fall of 0.4%. This is largely due to a decrease in lithium, molybdenum oxide, and copper cathode exports. On the other hand, the growth in shipments of copper concentrates, fresh cherries, gold, iron, fresh grapes, bleached and semi-bleached eucalyptus cellulose, fresh blueberries, fresh plums, potassium nitrate, and fishmeal has largely offset these losses.

Indonesia has expressed interest in deepening trade with Chile, particularly in the lithium sector, which is vital for Jakarta's aspirations in electric vehicle production. The main exported items include vehicles, spare parts, footwear, and Indonesian fertilizers, Chilean copper, cellulose, and fishery articles. The Comprehensive Economic Partnership Agreement (CEPA), signed between the two nations in 2019, has led to a 23% increase in trade since its implementation.

The Indonesia-Chile Forum, held at the Intercontinental Hotel in Santiago, brought together government, business, and academic leaders to optimize trade, investment, and economic partnership between the two countries. The event underlined the importance of strengthening bilateral ties in a context of economic growth in Southeast Asia and the growing relevance of relations with the region.

Furthermore, the Senate Foreign Relations Committee unanimously approved projects to modernize economic-trade agreements with Indonesia in the field of services and with the Pacific Alliance, which seeks to expand the scope of origin accumulation to the Associated States of the regional bloc. These initiatives will now continue their process in the Senate Chamber.

On another note, Meratus Group announced the arrival and incorporation of the WM Meratus Cilacap, its new ship, into the company's fleet. With enhanced capacity and cutting-edge technology, the company is better equipped to serve its customers, particularly in remote ports located in the Indonesian archipelago.

In conclusion, the Indo-Chilean economic and trade relations are on a promising trajectory, marked by cooperation, strategic agreements, and mutual interests in key sectors. The Chamber remains committed to fostering these ties for the mutual benefit of both nations.

• Intercambio comercial de Chile cae -1,7% - PortalPortuario (Portalportuario.cl)
• Con la mirada en el litio, Indonesia quiere profundizar comercio con Chile | AméricaEconomía (Americaeconomia.com)
• “Avanza la alianza: Foro Indonesia-Chile impulsa la cooperación económica entre ambos países” | ADN Radio (Adnradio.cl)
• Avanzan en comisión del Senado acuerdos con Indonesia y Alianza del Pacífico | Diario Financiero (Df.cl)
• Meratus Cilacap se integra a operaciones en Indonesia - PortalPortuario (Portalportuario.cl)
• Subsecretaria Sanhueza destaca aprobación de proyectos que modernizan acuerdos con Indonesia y con la Alianza del Pacífico en Comisión de Relaciones Exteriores del Senado (Diarioestrategia.cl)