By Ricardo Lagos, President of Chile

Chile is one of the world’s narrowest countries. But it is also one of the longest, stretching 4,300 kms. along the shores of the Pacific Ocean. That is perhaps one reason why our country’s attention has been increasingly drawn to the Asia-Pacific region and the future it holds. From Chile’s vantage point on the western coast of Latin America’s Southern Cone, we are today reaching across the immensity of the Pacific Ocean to build a bridge of dialogue that will foster economic growth and development.

Foreign trade is key for Chile; imports and exports represent over 60% of our country’s GDP. That is why we have negotiated trade agreements at a speed that often impresses international observers. We have signed Free Trade Agreements with Mexico, Canada, the European Union, the Republic of Korea, the European Free Trade Association (EFTA) and the United States. In addition, Bilateral Trade Agreements link us to most of our Latin American neighbors, including the Central American and Andean economies, and in 2002, we launched tripartite free trade talks with fellow APEC members, New Zealand and Singapore. These agreements reflect our deep belief that free trade paves the way for faster economic growth which, in turn, means more jobs and opportunities for our country’s citizens.

Chile’s relationship with the Asia-Pacific region is, today, a national priority, founded on our conviction that Chile is a natural bridge between the MERCOSUR countries Argentina, Brazil, Paraguay and Uruguay- and the dynamic Asia-Pacific economies. The development of the so-called bioceanic corridors across South America is one physical manifestation of this conviction. By linking South America’s Atlantic coast and its interior to Chile, these corridors will facilitate the use of Chilean ports as a channel for the region’s trade with economies on the other side of the Pacific Ocean.

In recent years, Chile’s ties with other Asia-Pacific economies have become ever closer. Since 1994, we have participated actively in APEC where Chile was one of the first economies to present an Individual Action Plan to its fellow members. We have, in addition, undertaken to achieve total economic liberalization, as defined under APEC parameters, by 2010.

The 2004 APEC Leaders’ Summit, which will take place in Chile, promises to be a watershed in this increasing closeness and regional insertion. The Summit will bring to Chile the spirit of entrepreneurship and progress that characterizes the different APEC forums, and the organization’s projects of economic cooperation. It will, moreover, be an extremely appropriate commemoration of the tenth anniversary of Chile’s entry into this forward-looking forum.

Two of the Asia-Pacific region’s main business and academic organizations -the Pacific Economic Cooperation Council (PECC) and the Pacific Basin Economic Council (PBEC)- have already held annual conferences in Chile: in 1997 and 1998, respectively. Moreover, in November 2000, Chile, together with the United States, Australia, Singapore and Brunei, signed the first multilateral Open Skies Agreement reached under APEC’s auspices.

And, in January 2001, the IX Asia-Pacific Parliamentary Forum was held in Valparaíso, the Chilean port in Region V that was recently declared a World Heritage Site by the United Nations Educational, Scientific and Cultural Organization (UNESCO). That event provided an opportunity not only to take a political look at economic progress towards our goals, but also at the views of our citizens, which must guide policies around the Pacific Ocean in this twenty-first century.

Today, Chile is widely recognized as an economy that is extremely attractive for foreign investment. Modern transport infrastructure, advanced logistics and world-class telecommunications services have helped to convert it into a business center that is no longer remote from the rest of the world. At the same time, the country has successfully opened its markets to foreign investors. They are not only welcomed and assured of freedom from discrimination, but also find an attractive business environment, anchored in Chile’s political and social stability, solid macroeconomic fundamentals and tradition of integrity and transparency.

In addition, investors need to be sure that appropriately qualified labor -a key ingredient for the success of their projects – will be available in their chosen destination. In Chile, the development of human resources is one of the pillars of our growth strategy and a field in which, over the past decade, we have made vast strides. Experience also shows that Chile has established a strong international reputation as an economy that offers a supply of talented and well-trained professionals, while expatriate staff enjoy a high, cosmopolitan standard of life in a safe environment.

Chile is a dynamic country that aims to combine social progress with its economic merits, thereby ensuring that all our citizens share in the benefits of growth and development. Moreover, we are convinced that social cohesion makes a country more competitive as well as enhancing its standing in the eyes of the world.

The world of the twenty-first century will bring new political, economic and cultural alliances. We would like to grow together with our friends on both sides of the Pacific Ocean. Chile has a long shore along that Ocean from which to create a shared future.

-Source: Chile APEC 2004