KEY POINTS:
New Zealand companies have nothing to fear from Chilean firms, even if we are selling the same products to the same markets.
That is the message of Corfo, the Chilean economic development agency, which is this week leading a mission of 17 companies to forge links with their New Zealand peers. The project coincides with the signing of an alliance between Corfo and New Zealand Trade and Enterprise in Wellington today.
Corfo investment division deputy head Orlando Jimenez said Chile and New Zealand had common interests. Their main export markets were Europe and North America, yet both suffered from the distance to those markets.
"Many people here see us as a potential threat," he said. "If you are looking at us on the commodity side of the economics, perhaps we are competitors, but when you add value ... that is the opportunity.
"In the long run, if you look at the small economies like ours we cannot compete in a global world without trying to bridge gaps of common problems."
For example, Jimenez said, technologies to extend the life of fresh produce could benefit companies in both markets.
Chile could be a springboard for New Zealand thanks to its network of free-trade agreements that gave it tariff-free access to markets representing 86 per cent of the world's GDP.
Fonterra's investment in Chilean dairy produce group Soprole, for example, gave it access to a range of markets in which it would face tariff barriers if it tried to export product directly.
Jimenez said the main objective of the mission was joint ventures and technology transfers. He expected more than half the visiting members to sign agreements with their New Zealand counterparts.
"Many of Chile's agricultural markets are going to double exports over the next five to eight years. We are facing productivity challenges and technology challenges and we are then trying to connect to companies in New Zealand to use the opportunities we offer," Jimenez said.
Chile, on the other hand, is looking to see how it can benefit from using New Zealand as a springboard into Asian markets.
The alliance proposes clear communication of the financial assistance programmes available in each country and the possible creation of a bi-national innovation and investment fund.
Its signing will be witnessed by the recently-elected Chilean president Michelle Bachelet and Helen Clark.
"We have the same idea that we need something more concrete than just signing memos," Jimenez said. "In Chile there has always been a lot of interest in New Zealand, but you do not see it here. Some companies worry about it and we are trying to show them the possibilities we see. In the long run we can be collaborators."
