bS U iness CHILE THE VOICE OF THE CHILEAN-AMERICAN CHAMBER OF COMMERCE N°282, AUGUST 2012 F ishing in Chile: A Race Against Time TRADE TESTIMONIAL HEALH T S PECIAL REPORT M ining Tools Made B ioequivalent Drugs: C hile's Wine Industry: in Chile Worth the Risk? A Premium on Quality CONTENTS bUSiness CHILE THE VOICE OF THE CHILEAN-AMERICAN CHAMBER OF COMMERCE N°282, AUGUST 2012 46 LIFE IN THE SLOW LANE 6 TRADE TESTIMONIAL 36 E CONOMIC SNAPSHOT M ining Tools Made to Order M exico: Time to Join the Rest of A Love-Hate Fishing in Chile: The Santiago-based mining Latin America? Relationship Mexico has not lived up to its A Race Against Time equipment manufacturer FMA Golf can be a frustrating TRADE TESTIMONIAL HEALTH SPECIAL REPORT Industrial produces custom-made, economic potential but, with the tide Mining Tools Made Bioequivalent Drugs: Chile's Wine Industry: in Chile Worth the Risk? A Premium on Quality safety-oriented mining tools for the shifting in its favor, this may be its game, but Santiago Eneldo mining industry. moment to catch up to the rest of thought he’d got his swing 12 the region. back until he lost his head Fishing in Chile: A Race (and his club) during a Against Time 8 H EALTH 38 B REAKFAST recent game. Chile’s fishing law expires B ioequivalent Drugs: The Economic Moment: in December and if the Worth the Risk? Chile and the World government fails to pass Chile’s recent decision to certify Former Chilean Finance Minister a new law that ensures and legalize bioequivalent Hernán Büchi discussed the the sustainability of the drugs aims to reduce costs uncertain world economic resource, it could be a for consumers by providing an situation at an AmCham breakfast perfect storm for the alternative to branded products. at the Grand Hyatt Hotel in July. industry. COROVER ST Y SP T OTLIGH 12 40 20 SPECIAL REPORT F ishing in Chile: US Private Equity and Venture © 2012 AMCHAM CHILE A Race Against Time Reproduction in whole or in part is Capital Mission Chile’s Wine Industry: strictly forbidden without permission Chile’s fishing companies and AmCham worked to bring a group A Premium on Quality from the publisher. Opinions expressed in artisanal fishermen are vying to of US private equity and venture bUSiness CHILE are those of the authors Strong competition, get the best deal possible from and do not necessarily reflect those of capital firms to Chile in August higher costs, and a weak AmCham or bUSiness CHILE. We accept no new legislation to replace the to meet with local investors and responsibility for the accuracy of the articles current fishing law. entrepreneurs. dollar are squeezing and any unforeseen errors. bUSiness CHILE the margins of Chilean is published monthly, 10 months a year and mailed free of charge to AmCham SPecial REPort 44 INTERVIEW wineries and affecting members. Letters are welcome. They should 20 be accompanied by the author's name C hile’s Wine Industry: Dispatches from Washington, volumes in some export and daytime telephone and sent to A Premium on Quality Chile’s Ambassador to the U.S., markets. But demand for [email protected] For reasons of Chile’s reputation as an exporter Felipe Bulnes, talked to bUSiness space limitation, AmCham reserves the premium Chilean wine is CHILE about his meeting with right to edit letters published. of inexpensive, good value wine rising and the industry is Advertising inquiries should be addressed needs to change in order for President Obama and the repositioning for future to AmCham's Sales Department: Paulina producers to increase prices and Embassy’s current areas of focus. Dellafiori: E-mail: cristina.ordenes@ growth. amchamchile.cl; Phone:2909741. Fax 2120515 penetrate new markets. Av. Presidente Kennedy 5735, Torre Poniente, Of.201, Las Condes, Santiago de EDITORIAL BOARD 2012 Chile; E-mail: [email protected]; www.amchamchile.cl; www.businesschile.cl CHAIR, Kathleen Barclay, Asesorías KCB; VICE CHAIR, Karen Poniachik, British American Tobacco 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, MEMBERS General Manager, 11 de Septiembre 1945 - Of. 516, Providencia. Phone: 376 9877, Rodrigo Ballivián, AmCham Chile; Ari Bermann, 3M Chile; Pelayo Bezanilla, Coca-Cola de Chile; Ruth Cell: (09) 6601-5505; Bradley, Freelance Journalist; John Byrne, Boyden Consultores Chile; John P. Dill, Project Management; e-mail: [email protected] Francisco Garcés, Banco de Chile; Ricardo Inostroza, AES Gener; Javier Irarrázaval, The Walt Disney www.kyd.cl Company Chile; Olga Kliwadenko, K&D Comunicaciones; Gideon Long, BBC/The Economist; Vincent McCord, Asesorías e Inversiones CarCon; James Newbold, Tanager Investment; Roberto Ossandón, Ossandón Abogados; Paulina Dellafiori, AmCham Chile. bS U iness CHILE August 2012 3 AMCH AM GLOBAL SPONSORS 2012 4 August 2012 bS U iness CHILE Editorial Biodiversity and Sustainable Development I n its simplest form, biodiversity is the variety of life there is still much work to do. This month’s cover – ecosystems, species and genes – that is essential story outlines the debate surrounding new fisheries for human development and growth. It is the basis legislation which is designed to ensure the sustainable for production, trade, investment and innovation, and development of this important resource. even the survival of the human race. The private sector is also acting. Through Chile has benefited greatly from its tremendous social responsibility and environmental programs, wealth of biodiversity. From its mineral-rich desert in the companies are working to protect biodiversity in the north to the fertile plain of the central value, the majestic communities where they operate. They understand fjords of the south and its abundant ocean resources, that protecting natural ecosystems is fundamental to Chile’s natural ecosystems have provided the foundation the survival of their businesses in the long term. of its strong and vibrant export-based economy. Greater awareness about this subject has created From tourism to astronomy, biodiversity also the need for a public-private dialogue in Chile, leading opens up new value-added business opportunities to a national agenda on biodiversity. This agenda is as Chile continues its transition to an innovation necessary in a world where environmental issues are economy. The wine industry, which is highlighted increasingly important to a country’s competitive in this month’s special report, is an example of an positioning. export-based industry that has thrived on Chile’s AmCham strongly supports Chile’s sustainable biodiversity. development and recognizes the importance of But this biodiversity should not be taken for protecting biodiversity to achieve this goal. We granted. As Chile grows and prospers, it must be look forward to participating in this dialogue and to protected and will require careful stewardship to contributing through our Good Corporate Citizenship permit further development for the benefit of future awards that recognize socially responsible generations. businesses. We are also developing links with US Chile has taken steps to face this important organizations that have useful expertise in these challenge. It has developed laws to protect its matters. We believe that these efforts will serve to coastline, to develop and strengthen its environmental promote and build trade and investment opportunities institutions, and to protect its native forests. But between Chile and the United States. BO ARD OF DIRECTORS EXECUTIVE COMMITTEE EXECUTIVE DIRECTOR Enrique Ostalé, Walmart Alfredo Ergas, Enersis PRESIDENT VICE CHAIR FINANCE AND ADR COMMITTEE Javier Irarrázaval, The Walt Disney Company Rodrigo Ballivián, AmCham Karen Poniachik, British American DIRECTORS Tabacco Chile Guillermo Ochoa, 3M VICE-PRESIDENT; CHAIR LABOR AND HUMAN CHAIR COMMERCE AND BUSINESS CAPITAL COMMITTEE VICE CHAIR EDITORIAL COMMITTEE Carolina Valdivieso, Kimberly Clark Pablo Achurra, Aramark Sudamérica CHAIR TRADE AND INTERNATIONAL Luis Siles, IBM de Chile Mauricio Ramos, VTR Global Com SECRETARY GENERAL; CHAIR LEGAL BUSINESS Mitch Larsen, U.S. Embassy Kathleen Barclay, Asesorías KCB Ltda. COMMITTEE CHAIR EDITORIAL COMMITTEE Michael Grasty, Grasty, Quintana, Majlis & Cía Fernando Concha, Citigroup EX OFFICIO CHAIR FINANCE AND CAPITAL MARKETS TREASURER Felipe Cerón, AES Gener Gonzalo Iglesias, Coca Cola de Chile ADVISORY COUNCIL CHAIR CORPORATE AFFAIRS AND AmCham Mision Statement PAST PRESIDENT SUSTAINABILITY COMMITTEE Rubén Covarrubias, “Promote free trade and business between Chile and the United States" Ricardo García, Camanchaca Inc. Universidad Mayor Luiz Marcelo Moncau, Microsoft Chile bS U iness CHILE August 2012 5 TRADE TESTIMONIAL Mining Tools Made to Order The Chilean mining equipment manufacturer FMA Industrial has found a niche producing safety-oriented mining tools for the domestic market and, increasingly, for export. By Steven Bodzin omewhere in the 1,500 Growth has come from listening The company's specialties are miles of tunnels at the El to customers, he says. The devices to help change tires on Teniente mine in Chile’s company employs eight full-time heavy mining vehicles and tools central O’Higgins Region, engineers in its staff of 110. It to handle the fat cables that feed S a mammoth truck gets recently opened a workshop and electricity to mining scoops. It a flat tire. For decades, such a yard in Antofagasta to be closer to is also selling a new device that simple breakdown was cause for the big mines, where it gets ideas. collects the used steel cables worry. Workers had to squeeze He says new designs often come that often litter mine sites. Anglo into the space between truck from hearing mine managers American, one of the company's and tunnel wall. A wrong move in describe what causes injuries. many clients in Chile, just bought freeing the one-ton wheel could "There are two mining problems a unit for its Los Bronces mine let it slip, potentially crushing that urgently need to be solved.