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Trade Liberalization, Development and Government Policy in Chile

This article evaluates the current stance of Chile’s trade policy, and the threats to continued. Topics covered are protectionism (tariff and non-tariff) in Chile and its export markets, the evolution of exports and a critique of dirigiste policies that claim that Chile is facing limits to an export orientation that is based on unprocessed natural resources. The main argument of this paper shows that exports have changed to include more technology and value added: a salmon is a means of exporting fishmeal (a traditional exportable) with more processing; wine is a means of combining fruit with capital and technology. It also provides case studies of successful emerging firms in new sectors linked to natural resources that utilize technology in novel ways.