Chile and Australia - practically neighbours and mining mates

Only an ocean separates Australia and Chile.

Australia is large with a land size of 7,692,000 square kilometers compared to Chile’s long thin land size of 757,000 square kilometers, yet the populations are similar (Australia has a population of 22 million and Chile has a population of 17 million). While the national languages may be different, Santiago and Sydney share similar latitude.

Both Australia and Chile have a large mining industry and this also connects the two countries. And we also have a free trade agreement.

The Australia-Chile Free Trade Agreement came into effect on March 6, 2009. The Agreement provides Australian businesses with significantly improved market access by eliminating immediately 92 per cent of tariff lines on 97 per cent of Australian goods currently traded; includes exports of coal, meat, wine and key dairy products. Tariffs on the remaining Australian export goods will be eliminated by 2015.

Chile also has FTAs with the European Union, USA and South Korea.

After Brazil, Chile is Australia’s second largest merchandise export market in South America, with some 120 Australian companies actively trading with Chile. However, in commercial terms, Chile’s importance to Australia derives from Australia’s significant investment links. Over 50 Australian companies have registered offices with over AUD$2 billion in direct investment in Chile.

Australian exports to Chile amount to AUD$330 million and Australian imports from Chile amount to AUD$552 million. Chile’s principal export destinations are China, USA and Japan, and their principal import sources are USA, China and Brazil. Australia’s main export destinations are China, Japan and the Republic of Korea, and its main import sources are China, USA and Japan.

Chile’s consul-general in Melbourne thanked his Australian “mining mates” for their support throughout the 10 week ordeal by the 33 Chilean miners trapped underground. The Age newspaper announced that Diego Velasco von Pilgrimm said, ''The miners were found 17 days after the disaster in Chile and the drill that found them was led by an Australian. Since then we have been hand-in-hand with Australia and other countries and mining communities.''

To honor the rescue, Chilean flags flew in Federation Square on Thursday in celebration.

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