Trade Testimonial Gone to Carolina Labor Shortage Calling All Miners
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bUSiness CHILE N°278, APRIL 2012 THE VOICE OF THE CHILEAN-AMERICAN CHAMBER OF COMMERCE Fact and Fallacy TRADE LABOR SHORTAGE SPECIAL REPORT TESTIMONIAL Calling all Miners Decentralizing Chile Gone to Carolina DISPONIBILIDAD REGISTRADA Líderes en Leasing Operativo de la Región Más de 33 años de liderazgo en la industria. Confíe en el número uno, confíe en RELSA. CONTENTS bUSiness CHILE N°277, APRIL 2012 THE VOICE OF THE CHILEAN-AMERICAN CHAMBER OF COMMERCE 6 TRADE TESTIMONIAL 24 SPOTliGHT Gone to Carolina Raising Hopes for US Wood products maker Arauco’s Business LifE IN THE SlOW LANE recently acquired manufacturing The Global Business 38 Fact and Fallacy plant in North Carolina will help Conference in Washington, DC, it diversify production and reach was a chance for the private Why Doesn’t new markets. sector to be heard, but was Everybody Love Me? Secretary Clinton listening? TRADE LABOR SHORTAGE SPECIAL REPORT Presidents Piñera TESTIMONIAL Calling all Miners Decentralizing Chile Gone to Carolina 8 LABOR SHORTAGE 34 EcONOmic SNAPSHOT and Obama are not Calling all Miners Oil: Chile’s Achilles Heel? getting much love, but 12 A shortage of skilled neither are the possible Taxation in Chile The latest oil price spike has hiked professionals in the mining inflation expectations and could trim alternatives. As Chile debates a industry is pushing up salaries economic growth, but measures to possible tax reform, and forcing companies to reduce Chile’s exposure would help. bUSiness CHILE looks invest more in training and at the facts and recruitment. fallacies surrounding the issue. 12 COVER STORY 35 BrEakfaST DISPONIBILIDAD Taxation in Chile: Fact and Winning the ZMOT Fallacy Google’s Fernando Lopez REGISTRADA bUSiness CHILE looks at how told AmCham members why Chile’s tax system and structure winning the Zero Moment © 2012 AMCHam CHilE compare with those of other of Truth is key to capturing SPEcial REPORT Reproduction in whole or in part is 18 countries in the region and the Internet savvy customers. strictly forbidden without permission Decentralizing Chile from the publisher. Opinions expressed in OECD. bUSiness CHILE are those of the authors The inhabitants of and do not necessarily reflect those of AmCham or bUSiness CHILE. We accept no Chile’s far-flung regions responsibility for the accuracy of the articles SPEcial REPORT INTERVIEW are demanding more and any unforeseen errors. bUSiness CHILE 18 36 Líderes en Leasing Operativo de la Región is published monthly, 10 months a year resources and benefits, and mailed free of charge to AmCham Decentralizing Chile Running to AmCham 3.0 members. Letters are welcome.T hey should Chileans from Antofagasta AmCham’s new executive director, but improving the Más de 33 años de liderazgo en la industria. be accompanied by the author's name to Aysen are demanding Rodrigo Ballivián, discussed his and daytime telephone and sent to quality of life in these greater decentralization, plans to offer the Chamber’s Confíe en el número uno, confíe en RELSA. [email protected] For reasons of areas requires public space limitation, AmCham reserves the but strengthening regional members more and better services. policies adapted to the right to edit letters published. governments will take time. Advertising inquiries should be addressed needs of each region. to AmCham's Sales Department: Paulina Dellafiori: E-mail: cristina.ordenes@ amchamchile.cl; Phone:2909741. Fax 2120515 Av. Presidente Kennedy 5735, Torre Poniente, Of.201, Las Condes, Santiago de EDITORIAL BOARD 2012 Chile; E-mail: [email protected]; CHAIR, Kathleen Barclay, Asesorías KCB; VICE CHAIR, Karen Poniachik, British American Tobacco www.amchamchile.cl; www.businesschile.cl Chile; VICE CHAIR, Manuel José Vial, Grupo Vial Abogados; PAST CHAIR, Michael Combes, Marco Chilena; GENERAL EDITOR, Julian Dowling, AmCham Chile; ASSISTANT EDITOR, Mariana Ossa, PrODUCTION AmCham Chile. K & D Comunicaciones Ltda. Olga Kliwadenko, General Manager, 11 de Septiembre 1945 - MEMBERS Of. 213, Providencia. Phone: 481-6940 / Rodrigo Ballivián, AmCham Chile; Ari Bermann, 3M Chile; Pelayo Bezanilla, Coca-Cola de Chile; Ruth 481-6941, Cell: (09) 6601-5505; Bradley, The Economist; John Byrne, Boyden Consultores Chile; John P. Dill, Project Management; e-mail: [email protected]; [email protected];www.kyd.cl Francisco Garcés, Banco de Chile; Javier Irarrázaval, The Walt Disney Company Chile; Olga Kliwadenko, K&D Comunicaciones; Gideon Long, BBC; Vincent McCord, Asesorías e Inversiones Carcon; James Newbold, Tanager Investment; Roberto Ossandón, Ossandón Abogados; Rodrigo Silva, Silva & Asociados; Mitch Larsen, U.S. Embassy; Paulina Dellafiori, AmCham Chile. bUSiness CHILE April 2012 3 AMCHam GlOBal SPONSORS 2012 4 April 2012 bUSiness CHILE Editorial AmCham’s Leadership: Building on a Strong Foundation This month AmCham incorporates a new leader – players in the US Congress, the executive branch Rodrigo Ballivián, the Chamber’s recently appointed of US government and the business community. He executive director. Rodrigo joins AmCham from the supported strategies to facilitate negotiations between private sector where he has held leadership roles in Chile and the United States. He encouraged optimism business associations, non-profit organizations and regarding a positive outcome to the negotiations – a multinational companies. He speaks of the challenges sometimes difficult and marathonic task considering and opportunities facing AmCham in this month’s that completing the agreement took over 11 years. interview in bUSiness CHILE. Once signed, Jaime led an AmCham focused on AmCham’s board welcomes Rodrigo and, together working to educate businesses in Chile and the United with the Chamber’s members, enthusiastically looks States about the benefits of the agreement while forward to working with him to further promote trade promoting networking events, studies and missions to and investment between the United States and Chile. turn it into trade and investment opportunities. At the same time, the board would like to thank He wisely advised eight separate AmCham Jaime Bazán, AmCham’s outgoing general manager, presidents including the current president, Javier for his 16 years of outstanding service to the Chamber. Irarrázaval. Jaime oversaw a period of great importance to He carried out his responsibilities with great AmCham, which included actively supporting the diplomacy, reflecting his 22-year career in the process that resulted in the successful completion diplomatic service, as well as his incredible of the Free Trade Agreement between Chile and the personal commitment and tremendous team spirit, United States (signed in 2003). This is probably the leaving behind a legacy of much value to AmCham’s single most important event for an AmCham in that members and the broader business community. such an agreement institutionalizes the commitment of Moreover, he completed his work in a self-effacing both sides to a long-term commercial and investment and respectful manner that was, in turn, admired relationship based on mutual benefit and shared and respected by all. values – it is the cornerstone on which AmCham We, AmCham’s board, thank Jaime for his service continues to build. and wish him well in his future endeavors. We also look Jaime played a pivotal role for AmCham in this forward to receiving his ongoing advice as we move process. He started by building and professionalizing into a new chapter in the history of the organization. AmCham’s staff. During the FTA negotiations, he also We remain optimistic and appreciative of AmCham’s supported the AmCham board by focusing on activities past achievements, a past that Jaime helped to frame to answer the crucial question “why Chile?” for key and to make a reality. BOARD OF DIRECTORS EXECUTIVE COMMITTEE Enrique Ostalé, Walmart Alfredo Ergas, Enersis PRESIDENT EXECUTIVE DIRECTOR VICE CHAIR FINANCE AND CAPITAL MARKETS Javier Irarrázaval, The Walt Disney Company Rodrigo Ballivián, AmCham Karen Poniachik, British American Tabacco Chile Guillermo Ochoa, 3M VICE-PRESIDENT; CHAIR LABOR AND HUMAN DIRECTORS VICE CHAIR EDITORIAL COMMITTEE CHAIR COMMERCE AND BUSINESS CAPITAL COMMITTEE Carolina Valdivieso, Kimberly Clark Pablo Achurra, Aramark Sudamérica Luis Siles, IBM de Chile Mauricio Ramos, VTR Global Com CHAIR TRADE AND INTERNATIONAL SECRETARY GENERAL; CHAIR LEGAL BUSINESS Mitch Larsen, U.S. Embassy Kathleen Barclay, KCB Asesorías COMMITTEE EX OFFICIO CHAIR EDITORIAL COMMITTEE Michael Grasty, Grasty, Quintana, Majlis & Cía Fernando Concha, Citigroup CHAIR FINANCE AND CAPITAL MARKETS TREASURER ADVISORY COUNCIL Felipe Cerón, Aes Gener Gonzalo Iglesias, Coca Cola de Chile CHAIR CORPORATE AFFAIRS AND AmCham Mision Statement Rubén Covarrubias, “Promote free trade and business between Chile and the United States" PAST PRESIDENT SUSTAINABILITY COMMITTEE Universidad Mayor Ricardo García, Camanchaca Inc. Luiz Marcelo Moncau, Microsoft Chile bUSiness CHILE April 2012 5 TRADE TESTIMONIAL Gone to Carolina Wood products maker Arauco is the latest Chilean company to take advantage of bargain asset prices and low manufacturing costs to gain a foothold in the US market. By Julian Dowling n the wall of Charles Kimber’s from Uniboard USA, a subsidiary of group through its holding company office in Arauco’s headquarters Germany’s Pfleiderer, for US$56 million. Empresas Copec, is not the plant’s first on the 14th floor of a Sanhattan The deal makes Arauco the latest Chilean owner. In 2004, at the peak of skyscraper hangs a huge map