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REPORT INDEX

  1. EXECUTIVE SUMMARY
  2. INTRODUCTION
  3. BACKGROUND KNOWLEDGE
  4. TARIFF BARRIERS
  5. NON-TARIFF BARRIERS
  6. INVESTMENTS
  7. TRADE IN SERVICES
  8. CONCLUSIONS
  9. LIST OF TABLES

GLOBAL TEAM

 

7. TRADE IN SERVICES

I. Analysis on Current Situation and Potential Benefits -- II. General Recommendations and Specific Concerns


I. Analysis on Current Situation and Potential Benefits  

From TABLE 8, it is possible to conclude that tourism, financial services, and insurance compose most of Chile’s export in services.[1] With respect to the FTA with Korea, the most beneficial Chilean industry in services is likely to be tourism.

The tourism industry accounts for 4% of GDP, and is the fifth most important sector in the Chilean economy. SERNATUR, the National Tourism Service, estimated that 1.8 million tourists visited Chile in 1998, bringing with them more than US$ 1.2 billion, which is an increase of 20% from 1997. The reversed seasons of the Northern and Southern Hemispheres are a boon to the tourism industry, allowing international visitors from the Northern Hemisphere to enjoy a day at the beach in January or to go skiing in the Andes Mountains in August. Although the peak tourism season runs from October to March, the industry has worked to expand its services and tour packages to provide year-round opportunities.

Korean people are rapidly growing more insensitive to the traditional nationalistic mentality[2] (See TABLE 9 for tourism). The younger generation are the main consumers of those services because of studies or honeymoons. Chile should try to attract this demand into the country.

There are other reasons, too.

  • Chile seeks to develop the tourism industry.

  • The economic integration of Chile must consider an important advancement in the liberalization of services. This sector contributes significantly to GDP.

  • It is also a necessary complement and support in promoting achievement of the benefits from market globalization. A slower advance in liberalizing services may weaken the dynamics of international trade.


[1] Chile has gone through a radical economic reform during the last twenty years. There were important changes introduced in the normative and legal regime of the service sectors. Its result is the transformation in the structure of the economy, and increased dynamism of the productive sectors, and a closer integration into the world economy.

[2] To stay in the country and avoid to travel abroad.

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Last updated: January 10, 2001. Copyright @ 2000 by GLOBAL Trade Consultants.

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