\nThe guest speaker at an AmCham breakfast on May 8 – Economy Minister Hugo Lavados – is an old friend of the Chamber and a former member of its Editorial Committee. And, he pointed out, an old friend of the United States, both because he studied there and because, as director of ProChile, the government\u2019s export promotion agency, between 2003 and 2006, he was responsible for helping Chilean companies to grow their sales in that key market. <\/p>\n
Even setting aside the effect of the record copper prices of recent years, Chile\u2019s trade with the U.S. is extremely dynamic, noted Minister Lavados. And, even more importantly, he added, that trade is highly diversified whereas, in the case of China, for example, more than 90% of Chile\u2019s exports are copper. <\/p>\n
Free trade between the Chile and the U.S. has been beneficial for both partners, he pointed out. Indeed, Chile\u2019s imports from the U.S. have grown more quickly than its exports to the U.S. That is, of course, due partly to the dollar\u2019s weakness but, according to Minister Lavados, also reflects the preferences of Chilean consumers. <\/p>\n
There is, however, a \u201cbump\u201d in Chile-U.S. relations, he recognized, in the form of their differences over protection of intellectual property rights. But, under a new law, Chile is in the process of creating an Industrial Property Institute to replace the Economy Ministry\u2019s Industrial Property Department. <\/p>\n
The new Institute should start operations at the beginning of next year, reported Lavados, and will mean an important change in technology, capacity and resources. It is, he added, far more than a mere change of name, as some critics have suggested. <\/p>\n
Through the National Fisheries Service, the Economy Ministry is also responsible for salmon farming, another area that has been a subject of controversy recently, following the publication of a critical article in a U.S. newspaper. The problem there, he said, is an outbreak of the ISA virus which \u201ccauses a drop in production and, in some cases, the quality of the final product but is, in no case, treated using antibiotics precisely because it is a virus.\u201d <\/p>\n
In broad terms, the Economy Ministry\u2019s job has to do with productivity and market efficiency, the minister told AmCham members and their guests at the breakfast. As a result, it has wide-ranging responsibilities in areas that include anti-trust regulation, consumer protection and tariff-setting in the water, gas and telecommunications industries.<\/p>\n
However, one of the areas to which it attaches prime importance is the development of small and mid-sized enterprises (SMEs). Its aim is to create a level playfield for SMEs, reducing the asymmetries and market inefficiencies that exist if totally free competition is permitted, he said. <\/p>\n
That involves changing regulation, argued Minister Lavados. \u201cThere is no point in saying we want to promote innovation, have more entrepreneurs and see private business being more efficient if we\u2019re full of difficulties for the creation, development and, even, closure of firms.\u201d <\/p>\n
Enforcement of regulation should also be didactic, rather than punitive, he insisted, and, instead of imposing fines or closing a business, the tendency should be to seek a remedy to the problem. \u201cBut that\u2019s easier said than done,\u201d he admitted, \u201cbecause there are a lot of state agencies involved, all with different areas of responsibility.\u201d <\/p>\n
Bureaucracy also needs to be pruned, he added. \u201cThe quantity of permits that businesses have to obtain – and this is probably valid for companies of all sizes – and the delays involved are a cost that we have to try to reduce,\u201d he said. <\/p>\n
But Minister Lavados also had a word of warning for those who call for a smaller state, arguing that, as well as being efficient, the state needs to develop in line with new activities and the demands made upon it.<\/p>\n
The recent eruption of the Chait\u00e9n volcano in the south of Chile serves as an illustration, he pointed out. Despite being one of the world\u2019s most \u2018volcanic\u2019 countries, Chile doesn\u2019t know much about its volcanoes and needs to expand its very limited monitoring facilities. \u201cIs that something the private sector can do? Clearly not, because it\u2019s a public good,\u201d concluded Minister Lavados.
\n
\nThe guest speaker at an AmCham breakfast on May 8 – Economy Minister Hugo Lavados – is an old friend of the Chamber and a former member of its Editorial Committee. And, he pointed out, an old friend of the United States, both because he studied there and because, as director of ProChile, the government\u2019s export promotion agency, between 2003 and 2006, he was responsible for helping Chilean companies to grow their sales in that key market. <\/p>\n
Even setting aside the effect of the record copper prices of recent years, Chile\u2019s trade with the U.S. is extremely dynamic, noted Minister Lavados. And, even more importantly, he added, that trade is highly diversified whereas, in the case of China, for example, more than 90% of Chile\u2019s exports are copper. <\/p>\n
Free trade between the Chile and the U.S. has been beneficial for both partners, he pointed out. Indeed, Chile\u2019s imports from the U.S. have grown more quickly than its exports to the U.S. That is, of course, due partly to the dollar\u2019s weakness but, according to Minister Lavados, also reflects the preferences of Chilean consumers. <\/p>\n
There is, however, a \u201cbump\u201d in Chile-U.S. relations, he recognized, in the form of their differences over protection of intellectual property rights. But, under a new law, Chile is in the process of creating an Industrial Property Institute to replace the Economy Ministry\u2019s Industrial Property Department. <\/p>\n
The new Institute should start operations at the beginning of next year, reported Lavados, and will mean an important change in technology, capacity and resources. It is, he added, far more than a mere change of name, as some critics have suggested. <\/p>\n
Through the National Fisheries Service, the Economy Ministry is also responsible for salmon farming, another area that has been a subject of controversy recently, following the publication of a critical article in a U.S. newspaper. The problem there, he said, is an outbreak of the ISA virus which \u201ccauses a drop in production and, in some cases, the quality of the final product but is, in no case, treated using antibiotics precisely because it is a virus.\u201d <\/p>\n
In broad terms, the Economy Ministry\u2019s job has to do with productivity and market efficiency, the minister told AmCham members and their guests at the breakfast. As a result, it has wide-ranging responsibilities in areas that include anti-trust regulation, consumer protection and tariff-setting in the water, gas and telecommunications industries.<\/p>\n
However, one of the areas to which it attaches prime importance is the development of small and mid-sized enterprises (SMEs). Its aim is to create a level playfield for SMEs, reducing the asymmetries and market inefficiencies that exist if totally free competition is permitted, he said. <\/p>\n
That involves changing regulation, argued Minister Lavados. \u201cThere is no point in saying we want to promote innovation, have more entrepreneurs and see private business being more efficient if we\u2019re full of difficulties for the creation, development and, even, closure of firms.\u201d <\/p>\n
Enforcement of regulation should also be didactic, rather than punitive, he insisted, and, instead of imposing fines or closing a business, the tendency should be to seek a remedy to the problem. \u201cBut that\u2019s easier said than done,\u201d he admitted, \u201cbecause there are a lot of state agencies involved, all with different areas of responsibility.\u201d <\/p>\n
Bureaucracy also needs to be pruned, he added. \u201cThe quantity of permits that businesses have to obtain – and this is probably valid for companies of all sizes – and the delays involved are a cost that we have to try to reduce,\u201d he said. <\/p>\n
But Minister Lavados also had a word of warning for those who call for a smaller state, arguing that, as well as being efficient, the state needs to develop in line with new activities and the demands made upon it.<\/p>\n
The recent eruption of the Chait\u00e9n volcano in the south of Chile serves as an illustration, he pointed out. Despite being one of the world\u2019s most \u2018volcanic\u2019 countries, Chile doesn\u2019t know much about its volcanoes and needs to expand its very limited monitoring facilities. \u201cIs that something the private sector can do? Clearly not, because it\u2019s a public good,\u201d concluded Minister Lavados.<\/p>\n","protected":false},"excerpt":{"rendered":"
The guest speaker at an AmCham breakfast on May 8 – Economy Minister Hugo Lavados – is an old friend of the Chamber and a former member of its Editorial Committee. And, he pointed out, an old friend of the United States, both because he studied there and because, as director of ProChile, the government\u2019s export promotion agency, between 2003 and 2006, he was responsible for helping Chilean companies to grow their sales in that key market.The guest speaker at an AmCham breakfast on May 8 – Economy Minister Hugo Lavados – is an old friend of the Chamber and a former member of its Editorial Committee. And, he pointed out, an old friend of the United States, both because he studied there and because, as director of ProChile, the government\u2019s export promotion agency, between 2003 and 2006, he was responsible for helping Chilean companies to grow their sales in that key market.<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"template":"","news_tax":[],"user_type":[],"class_list":["post-4194","news","type-news","status-publish","hentry"],"acf":[],"yoast_head":"\n