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Foreign Policy Statement Delegate: Ms. Jahnvi.

R, Name of Delegation: Chile Committee: Second committee (Eco-Finance) School: Sishya School Question.1 The question of risks attached to the Trade and economic development in Latin America A) Does Chile support or condemn the foreign policy for regional development? Answer: Yes, Chile supports the Latin regional development by way of implementing & maintaining strong foreign policy. Internationalization sets high quality and competition standards, higher quality jobs and better labor conditions. Goal is systemic competitiveness of the economy. B) What is Chile doing to support of condemn this issue Answer: Chile has taken wide steps to improve its foreign policies in line with the regional development such as : Chiles economy is a small and very open economy. Hence all economic-policy decisions are taken in the context and considering that: o the tradable sector, and especially exports, plays a crucial role in economic growth; o competitiveness and higher productivity are the keys for sustaining growth. The economic liberalization reforms during General Augusto Pinochets regime had made Chile gone farther than other Latin American countries Throughout its history, Chiles foreign policy has been based on the internal affairs of other States, international security and peace Chiles foreign policy objectives seek a multiple, balanced presence in the world coupled with the internationalization of the Chilean products and services in the worlds markets Both of these elements are key contributors to Chiles economic growth and development.

C) What does Chiles further plan to do to support or condemn this issue? In that context, Chile has taken considerable steps to measures to improve competitiveness such as: o Reform of competition policy bodies; o Reform of bankrupcy law; o Modernization of regulation of the telecommunications, fishing and electricity sectors. o Measures related to technology policy. o Tax measures so as to facilitate the location in Chile of foreign investors headquarters for their Latin American operations. o Reform of the capital market to promote the creation of a risk-capital industry, improve information disclosure and allow for more self-regulation of financial institutions. o Measures to improve the efficiency of government spending. o Elimination of red-tape. o Export-promotion actions, general incentives & access to foreign markets Proof of Chiles commitment to the achievement of free trade is the unanimous approval given by the Chilean Congress to the establishment of the World Trade Organization. The European Union, the worlds largest integrated market, continues to be one of Chiles most important trading partners. In 1996, a framework agreement was signed by Chile and the European Union, strengthening the existing trade and cooperation ties. Close co-operation between the public and private sectors to improve the economic environment. Relations with Latin America occupy a preeminent place in Chilean foreign policy. Chiles principal aim in this region is the promotion of integration and the consolidation of an environment conducive to peace. Chile is convinced that the creation of a Free Trade Area of the Americas will foster new levels of political cooperation and cultural integration and links in the Americas.

Chile has a special interest in its relationship with two leading Latin American trading partners, Argentina and Brazil. In 1996, This policy toward Latin America is fully compatible with a deeper penetration of world markets Greater presence in the Asia-Pacific area is yet another central objective of Chilean foreign policy. The Pacific Rim will undoubtedly be one of the principal international scenarios of the 21st century. As a result of the abovementioned policy, Chile signed a Free Trade Agreement with the European Union in early 2003. That same year, a Free Trade Agreement was signed with the United States of America. Meanwhile, in Asia, a Free Trade Agreement was signed with the Republic of Korea. Chile is convinced that the organization born 60 years ago will continue to be the principal multilateral vehicle for the projection of its proposals, contributions and chileans dreams. Question.2 The question of risks attached to the Prosperity Prosper in Foreign direct investment policy implemented for the Trade and economic development in Latin America A) Does Chile supports or condemns this policy? Yes, Chile supports the improvement in Foreign direct investments and in fact, the country heavily depends upon the investments for its own development and of its neighbours. B) What is Chile doing to support / condemn question No.2 Chile promotes free trade at every level, through the elimination of tariff and non-tariff measures in line with well-defined policies for continued foreign investment into Chile. The basic premise has been neutral policies towards direct foreign investment. Only benefit is a guarantee of tax invariability for those investors that use DL 600. Recently the government started granting for the co-financing of investment activities in high technology sectors. Chile does not use performance requirements. Furthermore, now the FTA with the U.S. limits their use. Attractiveness based on low cost of telecommunications, high levels of connectivity and quality of life.

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C) What does Chile further plan to do to support / condemn question 2? o Chile plans to create more competitiveness and trade developments with appropriate infrastructure so that exports can reach ports of exit at the lowest cost possible. o In tihe second half of the 1990s, Chile began a massive process of transferring roads to private operators through BOT contracts. o The government has also been transferring the operation of docks at major ports to private enterprises, maintaining the overall management of the ports. o More recently, other services, such as the building and operation of prisons, is being transferred to the private sector.