There is plenty to be cheerful about in Chile in the run up to presidential elections this December. Two decades of trade liberalisation have built a trade and investment regime that, according to the latest Trade Policy Review published by the WTO this week, is characterized by,

‘…openness, transparency, predictability and inter-sectoral neutrality,’

In Chile, foreign investment is treated as an essential engine of growth. National treatment is granted to the majority of foreign investors, and a simple tariff structure encourages import/export businesses. As a result Chile has enjoyed some of the strongest levels of economic growth in the region, reaching 4.8 per cent between 2003 and 2008.

Chile now boasts the second highest GDP per capita in South America. A threefold increase in copper prices has undoubtedly boosted the economy. But according to the WTO, non-copper exports have increased by 12 percentage points of GDP since 1990, providing vital diversity to Chile’s long term economic plans.

Significant advances in social welfare have followed the positive economic reforms. The Economist recently reported that eight out of ten youths now finish secondary school and four out of ten go on to higher education, with 70 per cent of these being the first in their families to do so. Poverty rates have decreased dramatically, from 45% of the population two decades ago, to under 13 per cent in 2008.

Whoever wins the current presidential race, let us hope that liberalising trade restrictions remains high on the agenda for Chile’s leaders. Long may this trend, and the prosperity it brings, continue!