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CHILE AUSTRALIA CHAMBER OF COMMERCE 35th Edition - 2017, Santiago de Chile.

INTERVIEW

Andrés Castillo Gómez, General Manager 3ie AUSTRALIA – CHILE

The Public Market: Chileans in Sydney celebrate the Chilean National Holiday

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CONTENT

06 INTERVIEW Andrés Castillo Gómez, General Manager 3ie. INSTITUTO INTERNACIONAL PARA LA INNOVACIÓN EMPRESARIAL UNVERSIDAD TÉCNICA FEDERICO SANTA MARÍA

21 12 REPORT The Public Market: Another business alternative for Australian companies in Chile.

Editorial Director: Melchor Alegría Ramírez Contents: Mkopro - Auscham Interviews and Features: Mkopro Art and Design: Mkopro Digital Post-production: Mkopro Cámara Chilena - Australiana de Comercio AG 2800 Isidora Goyenechea Street, floor 43. Las Condes, Chile. Fono: (56-2) 25706090 - info@auscham.cl

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AUSTRALIACHILE: Chileans in Sydney celebrate the Chilean National Holiday


EDITORIAL Dear Members and Friends, Welcome to another issue of Auscham Magazine, our principal communication channel with members, and one that has received very favourable feedback from a steadily growing readership base. We are grateful to our members and friends for all their support and enthusiastic participation in each issue.

will be organized with much enthusiasm at the Prince of Wales Country Club on Thursday 9 November, and as ever will include golf and tennis championships, as well as some important prizes. The event will close with our traditional annual dinner. We invite you to save this important date Very best wishes to you all

During 2017 we have been working very hard with our Auscham committees; they have gradually become more and more Paulina MartĂ­nez Gili active, both inside and outside the Chamber. General Manager This fulfils one of the goals set for the year, Auscham. and is thanks to the positive attitudes and firm commitment of each of the committee presidents. To continue growing as a Chamber, it is vital to be able to count on their initiatives and support. Almost without noticing, we have reached the final quarter of 2017, and our Auscham Day is just around the corner. This year it

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CURRENT EVENTS

For the seventh year in a row Melbourne receives the distinction of being the best city in the world to live The city of Melbourne has once again been has been consistently ranked in the top three named the best city in the world to live in the positions. ÂżWhat is it then that keeps Melbourne prestigious Liveability Index of the Economist at the top of the list? Intelligence Unit (EIU). The city is recognised as the cultural and sporting Melbourne has won this important recognition capital of Australia. It is the venue to important now for an unprecedented seven years and once sports events such as the Australian Tennis Open, again ranks its quality of life more highly than in the Formula One Grand Prix and the Australian cities such as Vancouver and Vienna. Horse Racing Spring Carnival, which includes the Melbourne Cup, a race which manages to stop The Liveability Index ranks 140 cities throughout the whole country for three and a half minutes the world. Since it started in 2006, Melbourne once a year.

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CURRENT EVENTS Melbourne is also home to prestigious universities that are consistently ranked among the best in the world. It produces the highest number of technical graduates in Australia, and is considered one of the most important student cities in the world.

A principal strategy for growth of the Victoria State Government is the internationalization of its industries, as well as the attraction of investment and foreign companies. To achieve these goals, it has established a network of 21 commercial offices around the world, including most recently an office in Santiago, which will act The Victoria State Government invests continually as an operational centre for Latin America. in city infrastructure, including highways, tunnels and new roads for improved connectivity, as well For Natalia Gorroño, Senior Trade and Investment as in trams and trains for better public transport. Director for the new Victoria State Government It is presently expanding its world-class offices in Latin America, the announcement of conference centre in order to accommodate the Melbourne as the world’s best city to live for the growing number of international events and seventh year in a row is excellent news, reflecting exhibitions taking place in the city. the robustness of its institutions, the dynamism and entrepreneurial character of its people and As a result of its incomparable attractions as a the world-class infrastructure of the city as a place to live, Melbourne has the highest rates of whole. “Melbourne continues to build its global national and international immigration in Australia reputation, not only as the world’s best city to and is projected to be the largest city in Oceania live, but also as a world-class destination for by 2030. international students, given the quality the education it offers. Furthermore, it is a first-class The Economist Intelligence Unit is not the only destination for companies seeking to establish organization to highlight the achievements of an operational base for Asia Pacific operations.” Melbourne. The city also gained first prize in the Human Capital and Lifestyle category of the awards given by the magazine fDI Asia-Pacific Cities of the Future. The magazine also ranked Melbourne as one of the top five medium-sized cities for Economic Potential and among the first ten for Direct Foreign Investment Strategies. During the same week of important announcements, the Savills World Research Tech Cities 2017 report included Melbourne as one of the cities at the forefront of global technology. Evaluated as the best tech city in Australia, Melbourne has the infrastructure, the human capital and the lifestyle to attract technology companies from the whole world looking for a good place to set up their operations.

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INTERVIEW Andrés Castillo Gómez, General Manager

INSTITUTO INTERNACIONAL PARA LA INNOVACIÓN EMPRESARIAL (International Institute for Entrepreneurial Innovation) UNVERSIDAD TÉCNICA FEDERICO SANTA MARÍA

“In technological innovation there are a number of tendencies presenting excellent business opportunities, in particular those based on technologies such as: artificial intelligence, the internet of things, big data, blockchain, robotics, drones, and 3D printing.”

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How did 3IE get started? The origins of the Instituto Internacional para la Innovación Empresarial (International Institute for Entrepreneurial Innovation), or 3IE Institute, date back to the year 1991, when contracts were signed with the Italian Government to bring the Universidad Técnica Federico Santa María into close contact with national and international economic development. The 3IE Institute was set up in the year 2000 with a mission to become a benchmark of excellence through the promotion,


INTERVIEW strengthening, and innovative development of the entrepreneurial sector. Specifically, its role is to encourage the creation of technology companies and the generation of a collaborative environment between industry, investors, universities, governmental institutions, and investigation and development centres. What is the principal advantage of being a business incubator under the auspices of a university? There are two advantageous aspects of this situation. The first is that it allows the generation of new companies, based on the results of academic investigation at a pre-and post-graduate level. Given the focus of the University, these are mainly technology based businesses, which tends to result in start-ups that generate dynamic and sophisticated new products and/or services with high growth potential. The second aspect is that the University’s prestige and expertise give the start-ups access to specialised, technological knowledge through consulting, technical a s s i s t a n c e , and collaboration in applied sciences, or through other channels such as the 3IE Mentorship Network.

When a company starts up with the support of an incubator, is it more likely to be successful? Yes, that’s right. According to studies, the impact of an incubator in an entrepreneurial ecosystem accelerates the processes associated with an early validation of the technical and commercial feasibility of a business. In the case that the business is not feasible, the presence of an incubator allows the idea to be abandoned quickly without incurring in too many expenses (which is very good for the ecosystem, since resources are optimised). When the outcome is positive, the first sales can be generated and/or the business scaled up through the opening up of new commercial opportunities with the proper business networks provided by the incubator. At present in the Chilean market, do you think that innovation is fundamental for creating a successful company? Yes, I do. Innovation is vital in order to be able to differentiate a company’s offerings from other products available in the market. But all of this goes hand in hand with a correct business model that allows the creation of value and that provides protec tio n against future co m p et i t i on . Furthermore, innovation is also important for surviving in the marketplace. Today, Chilean companies face the challenge of competing against technology companies with a global impact or presence. Therefore, maintaining

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INTERVIEW their market positions, both nationally and internationally, depends not only on increasing productivity, but also on launching new differentiated products and services that allow them to keep competing.

offered to the market. An example of this is a company called ADROX that generates liquids with nanotechnology for the protection of the surfaces of solar panels in order to decrease the adhesion of pollution. This brings down the maintenance costs and increases the efficiency What are the stages in the incubation process of the panels. The liquids can also have other for a company? Until what stage do you accompany uses, such as preventing rusting, repelling water the entrepreneurs at 3IE? etc. In general terms, the process starts with the request for support from a start-up with a According to the study “Business Dynamics: business proposal. In the case of 3IE, this is a Regional and Sectorial Gaps for SMEs in Chile”, technology based business that must have at published in 2016, despite state support through least an operational prototype, annual sales of entrepreneurship programs, approximately 15% no more than U$100 MM, and, a track record of of companies created do not manage to survive no longer than three years if the start-up has for more than a year, and 40% are not able to already been set up as a company. keep going for longer than 7 years. Why do you think that 55% of these companies are not able At 3IE, we have two defined stages. The first is to consolidate themselves over time? focused on the technological packaging of the The statistics reflect the fact that at the first stage, product or service, the validation of its business particularly during the first year, the start-up model, and the development of the basic takes a risk in executing a business plan, where one operational capacities. All of this is done to of the possibilities is that the company will not be achieve the first sales for the company. During successful. This is part of the “natural” process a second stage, work is focused on making a of commercial validation, where the company bigger impact in the market, increasing market generates a “value proposal” and the client share, achieving product improvements, optimising decides whether the product is something and/or scaling up processes, and generating necessary, useful or desirable that he is prepared alliances to strengthen the entrepreneurial to pay for. The problem is during the second stage, capacities. The objective is for the company to which is related to market access. Given that reach a point of equilibrium that allows it to the national market is relatively small, SMEs are project continuity over time, whether through unable to grow in this limited environment, and sales or by raising capital. therefore the challenge is to open new markets overseas. Today there are not very many options In addition to the traditional business models, here either, mainly because there is little knowledge have you had any experience with high impact among SMEs about these processes. models? The focus at the 3IE Institute is the generation There are other aspects limiting growth, and, in of high impact models in terms of growth po- some cases, continuity of the business. These tential. These are models that allow the value of are related to several factors including high tax the new technology generation to be captured levels (which are the same as for large companies), through sophisticated products and/or services liquidity, access to credit or very long collection periods. 8


INTERVIEW Looking to the future and based on your experience, do you think that it would be possible to extend the support of your incubators to SMEs that present deficiencies and that need to adapt themselves to an ever more competitive global market? Yes, it would be possible to generate services orientated towards SMEs, but this depends, of course, on the capacities and availability of the incubators. At the 3IE Institute we have taken part in programs of this type for the mining sector, but with a focus on companies that are starting to diversify their product and/or service portfolio through technological innovation and therefore in need of support in our technological itinerary. In these cases, the relationship with the University is much more necessary. What business lines do you at the 3IE Institute believe have most potential for entrepreneurs? In technological innovation there are a number of tendencies that offer interesting opportunities, especially in businesses based on technology such as artificial intelligence, the internet of things, big data, blockchain, robotics, drones and 3D printing. In general, almost all industries will be affected by these tendencies in the so-called fourth industrial revolution or intelligent industries. Therefore, this is a great opportunity for entrepreneurs, and, to take full advantage, it will be necessary to promote and strengthen commercial relationships with companies that require these technologies.

seed stage from CORFO. This financing is known as the SSAF-i Fund and is operated by 3IE. For companies, we offer innovation portfolio management services or alternatively, the same open innovation programs as are offered to entrepreneurs What message would you like to give to those who are presently in the process of creating a company? The challenge at the initial stages is to detect a real market opportunity and to generate a product that matches the capacities or expertise of the start-up. Often, however, mistakes are made in the validation of the client problem, not for a single client, but for a whole segment. There are also mistakes in quantifying the problem in order to determine the value generated versus what is captured (the price). Therefore, the invitation to any entrepreneur or company wanting to start an innovation process, is to invest a significant time in learning about the clients and in determining what are the drivers that will trigger the potential purchase. At the same time, a business model must be built that can sustain this value proposition over time. If this process gives a negative result, great! You will have avoided wasting important resources in developing the product. If there is a positive and feasible result, then your business has potential.

How can entrepreneurs get in touch with the 3IE Institute? Entrepreneurs and/or companies that would like to work with the 3IE Institute, can get in contact through our website, www.3ie.cl. Enquiries from the website are passed on to the appropriate area. In the case of entrepreneurs, our Incubation Program goes hand in hand with financing at the

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CALENDAR November

09

October

25

October

10-12

FEXMIN 2017

After several meetings with the National Geologist Association, Auscham, through its Mining Committee, has become an strategic partner in the first mining exploration summit “FEXMIN 2017�, to be held in Chile on 10, 11 and 12 October, in Santiago at the Casa Piedra Events Centre. Its objective is to provide a forum for business opportunities related to mining prospects and exploration projects, by connecting companies, project owners and investors at a single convention. For more information visit www.fexmin.cl

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CALENDAR October

11

October

12

October

30

Seminar on the investment scenario in Latin America: Time to invest in LATAM (Sydney)

The Pacific Alliance Forum (Brisbane) 2017 Brisbane Annual Dinner

International Mining and Resources Conference (IMARC) (Melbourne) For more information visit http://www.alabc.com.au/Events-Activities

NEW AUSCHAM MEMBERS

Bustos Tax & Legal

Industry: Tax and Legal Services Website: www.bustostaxandlegal.com

Fromozz

Industry: Import and Export Platform Website: www.fromozz.com

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REPORT

The Public Market: Another business alternative for Australian companies in Chile.

As we mentioned in the last issue of Auscham magazine, the Chilean Public Market presents an opportunity for overseas companies investing in Chile to do business in a consolidated and mature market. Unfortunately, according to information from the Department of Public P r o c u r e m e n t ( Di re cci ón d e Compras y Co nt rat a c i ón Pública or ChileCompra) about contracts awarded between 2004 and 2017, there

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By: Gabriel Arancibia G. and Joaquín Vicuña D. Alessandri y Cía

are no Australian companies on record as having provided goods or services to public institutions. If we look at the country of origin for most companies awarded contracts in bidding processes or for the provision of goods and services, we find Mexico in first place with 785 contracts, followed by the United States with 476, Spain with 386, France with 312 and Colombia with


REPORT From the information provided by ChileCompra, and following on from what we said in the previous issue of this magazine, we can draw several conclusions. First, there are few overseas companies bidding for public market contracts and the amounts are low in comparison to local companies. Second, contrary to world tendencies, there are very few companies and low amounts from Asia. Third, the goods and services provided to public sector institutions by overseas companies are very varied.

310. As for the amounts of the contracts signed between public institutions and overseas companies, of the total U$164.5 million, Spain leads the ranking with U$87 million, followed by Brazil with U$34 million, United States with U$5 million, France with a little less than U$4 million and Uruguay with U$3.3 million.

The figures revised also show that companies from some specific countries regularly offer goods and services to Chilean public institutions, are not including companies from Australia. Chile has open frontiers, low customs duties and world renowned economic freedom. The Chilean State has made significant adjustments over the past decade, and the attraction of overseas investments has been one of its principal pillars. All of this reinforces our conviction that the Public Market is an important alternative for the development of new business for Australian companies. They will find in Chile clear regulations that guarantee equality of treatment, transparent regulations and free access to practically all sectors of the economy.

Of the highest value contracts between overseas companies and public institutions, we should highlight the contract entered into between Copisa Constructora Pirenaica S.A. of Spain with Empresa Portuaria Iquique for the replacement of the berth front at the Port of Iquique, which was worth more than U$33 million. Then comes For more information you can contact to this emails COAN of Brazil with a contract for the School and telephone numbers: jvicuna@alessandri.cl / Meals Program signed with the JUNAEB ( Junta garancibia@alessandri.cl , +56227876000 Nacional de Auxilio Escolar y Becas – National Board of School Assistance and Scholarships) and amounting to more than U$19.4 million. Also worthy of mention is the contract for a similar amount gained by Tradeco Infraestructura S.A.de C.V. of Mexico and signed with the Corporacón Administrative del Poder Judicial ( Judicial Branch Administration Corporation), for the construction of the Viña del Mar justice centre.

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AUSCHAM NEWS

02 August

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August

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August

On 2 August, the talk “Pensions for Chile: Discussions Pending”, organised by Auscham Legal and Financial Committee together with AFP Cuprum, was held at the Sofofa Conference Centre. Two notable speakers, Pedro Atria, G e n e r a l Manager of Cuprum and Andras Uthoff, past member of the Bravo Commission and member of the Pensions Advisory Council, made presentations about their viewpoints of the new Government bill on pensions in Chile.

On 10 August, the talk “Bitcoin in the Market: Present Challenges” was organised by the Auscham Innovation and Technology Committee. This included a presentation by Juan Ignacio Saieh, General Manager of Trade TBC, explaining how this “virtual currency” operates and the challenges for the Chilean market.

The Second Australian Business Network 2017 event took place with much success on Wednesday 23 August, with the participation of the Executive Director of CSIRO Chile, Mr Orlando Jimenez, who gave a short presentation about the mission of CSIRO and the importance of its work in Chile. The venue chosen for this important event was the Hotel Marriot, where guests were able to enjoy a pleasant and relaxed atmosphere for networking.

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24 August

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September

AUSCHAM NEWS A breakfast meeting about “Electromobility and uses of electric energy: opportunities and challenges” was well attended on 24 August and included presentations from important players in the Chilean energy sector. These included Claudio Seebach, Executive Vice President of the Chilean Association of Electricity Generators (AGG), Diego Lizana, Executive Director of the Chilean Energy Efficiency Agency and Gianni López, Director of the Mario Molina Centre.

A collaborative meeting jointly arranged by a group of Chambers of Commerce in Chile was held on 12 September at the Hotel Cumbres in Vitacura, where economic advisers to the presidential candidates Carolina Goic, Beatriz Sánchez, Sebastián Piñera and Alejandro Guillier presented their economic proposals for the next presidential period in Chile. The meeting was attended by more than 250 business people who were able to listen to first-hand information about the principal economic proposals of the presidential candidates, thereby gaining better clarity about the future of the country. The meeting was jointly organised by the binational chambers of Australia, Germany, Spain, France, Belgium/Luxemburg, Canada, Italy and Switzerland. The presenters at this important event were: - Mauricio Jélvez representing Carolina Goic - Ramón López representing Beatriz Sánchez - José Ramón Valente representing Sebastián Piñera - Osvaldo Rosales representing Alejandro Guillier.

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ENCOUNTERS 4 August Auscham held a meeting with the new General Manager of Osmoflo, Mr Antonio Casado, at which opportunities for joint work on topics of common interest were discussed, as well as the areas in which the Chamber can provide support to the company. 11 August The General Manager of Auscham, Paulina Martínez, met the team from Bustos & Tax Legal to plan future activities. 17 August Auscham met Mr Jonathon Oconnor of Caledonian Argentina to talk about the activities to be organised on a joint basis in both Chile and Argentina. 18 August Auscham had a meeting with Ms Lisa Mc Auley, CEO Export Council of Australia (ECA), to discuss the way in which Auscham can collaborate in the diffusion of the services provided by Global Trade Professionals Alliance (GTPA). This is a non-profit organization representing the needs of organisations involved in capacity and capability-building in international trade. 28 August Auscham met with members of Guerrero Olivos over lunch to evaluate ways to foster a closer relationship with members. 1 September Ximena López, in charge of Public Relations at Auscham, met Mr Ricardo Muñoz of RML Group, to build closer mutual ties and to make Auscham services available to RLM. 13 September Auscham held a meeting with Daniel Ponce and María Esther of FROMOZZ, a company with a digital Export and Import platform, to discuss collaborative work with the Chamber in 2017 and 2018. 1 September Auscham participated in an activity organised by the member firm Guerrero Olivos, “Understanding the Regional Ecosystem in Technology Investment”. 16


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INTERVIEW

Paula Moreno Trade Commissioner of Chile in Australia

The minerals and forestry industries accounted for 32% and 23% of Chilean exports to Australia in 2016.

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ProChile (Trade Commission of Chile) is the Chilean Ministry of Foreign Affairs’ Export Bureau with more than 50 offices strategically located all over the world.

export to Australia, promoting the development of their capacity to export by providing market opportunities and encouraging their internationalisation through our tools and network.

What are the strategic goals of ProChile in Australia? ProChile aims to support Chilean companies currently exporting or with the potential to

What activities/events are ProChile involved in to help Chilean exporters? As ProChile in Australia, we support Chilean companies in several ways:


INTERVIEW - Researching specific background information about accessing the Australian market - Arranging business meeting agendas between exporters visiting the market and Australian potential importers and distributors - Connecting Australian importers and distributors with Chilean suppliers to meet specific product/ service requirements - Inviting Australian importers to meet Chilean suppliers and attend seminars in Chile (i.e. ENEXPRO ) - Coordinating the Chile stand/pavilion in different exhibitions or conferences - Generating networking events to connect with the Australian market.

in 2016. Our team has noticed emerging trends for engineering, technology, equipment (METS) plus environmental services related to the mining sector, and for the forestry sector, there has been an increase in demand for products and services related to sustainable construction. In both of these industry areas we see a potential for Chilean companies to increase their presence. The excellent connectivity between Australia and Chile continues to bring our countries closer together, with direct flights Sydney/Melbourne – Santiago. Education and tourism as key services of the Chile-Australia trade relationship are also growing, with an increasing number of students and tourists visiting Chile as a destination for Some of the most recent events organised by study and travel. ProChile Australia were: - Networking Breakfast at AIMEX 2017 for mining Emerging sectors for export from Chile to sector in Sydney Australia include Creative Industries (music & - Sounds of Chile – Networking drinks at fashion), Videogames, and Information Technology BIGSOUND 2017 in Brisbane for the music sector & Communication. We expect to see increased Our 15 local offices in ProChile are the first point exports of products and services from these and of contact for many Chilean exporters to provide other innovative sectors in the near future. in-country support, training and access grant applications, prior to visiting Australia. If you are a Chilean company that would like more information about how ProChile can support your In which sectors in Australia do you see that Chilean export plans, please see our website: http:// companies could increase their presence? www.prochile.gob.cl/prochile-en-el-munIn the past year, we have noticed a demand for do/?pais=148 several products following newer trends that hold opportunities for Chilean suppliers. The If you are an Australian company looking to import category of food & beverages makes up 30% of products/services from Chile, please contact us Chilean exports to Australia in 2016, and trends at: australia.sydney@prochile.gob.cl for products such as organic, health “superfood” and gluten-free items are important for Chilean companies to consider, as well as the traditionally exported products that are continuing to have success in the Australian market; frozen fruits, dried fruit and nuts and frozen mussels. The minerals and forestry industries accounted for 32% and 23% of Chilean exports to Australia

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QUICK TIPS FOR BETTER ENGLISH Tentative Language for Meetings: 7 Quick Tips If we are talking to our best client, an overseas supplier or a potential boss, we often have to be careful about the language we use. Language with negative implications can be toned down and made less direct to avoid possible offence. This comes naturally in our own language, but it can be more difficult if we are not native speakers. Here are some tips for being diplomatic when you have to say something that may not please the other person! 1. Be more tentative by adding a “would”. That is too difficult. That would be too difficult. We have to charge more. We would have to charge more. 2. Make statements into questions. We don’t have an option. They don’t have enough time to do that.

Do we have any other option? Do they have enough time to do that?

3. Soften the impact with an introductory phrase. Good openers that “prepare for bad news” are: - I’m afraid - Unfortunately - To be honest - Quite frankly - I have to say We have overspent the budget. I’m afraid we have overspent the budget. The results have been poor. To be honest, the results have been poor. 4. Change negative adjectives to “not very + positive adjective”. The proposal looked bad. The proposal didn’t look very good. The meeting time is inconvenient. The meeting time isn’t very convenient. 5. Be more tentative by introducing doubt. We couldn’t do that. We are not sure that we could do that. It doesn’t make sense. I am not convinced that it makes sense. 6. Add little words (quite, really, entirely) to make the phrase less direct. I don’t like it. I don’t really like it. I didn’t understand what you said. I didn’t quite understand what you said. We don’t agree. We don’t entirely agree. 7. Avoid language that accuses someone else by taking the blame yourself. You are not offering us a good price. We need to find a better price. You have not been very clear. We haven’t managed to understand you properly. Some of these tips also work well when writing tricky emails. For both verbal and written communication, softening your tone with tentative and indirect language generally gets better results!

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AUSTRALIA - CHILE Sydney Celebrated Dieciocho with La Bondi Fonda The night was hosted by Chilean actress Tatiana Merino. The event included live music and the Chilean culture icon Nilda Moya “La Pirilacha” with her folkloric group “Arte & Folklore” accompanied by a Cueca dance, Faramarz & Angel Aillon. The event included traditional food such as Completos, Empanadas, Chorrillanas, Vino, Pisco, Cerveza and much more. The event was sold out and well received by everyone that attended. Photography: Raquel Duron

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NEWS OF OUR ASSOCIATES

Ricardo Vásquez A lawyer with Baraona Fischer Spiess and Director of Auscham, has been named by the Chilean State and the World Bank as a new Arbitrator of the International Centre for Settlement of Investment Disputes (ICSID).

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From September 2017, Ricardo Vásquez, who is a lawyer with Baraona Fischer Spiess will form part of the List of Arbitrators of the ICSID (International Centre for Settlement of Investment Disputes).

Ricardo graduated in Law from the University of Chile, obtained the Certificate on Managing Investment Disputes from the American University of the Washington College of Law and has an LL. M. from the University of Sydney, Australia.

Together with three other distinguished lawyers who are experts in arbitration, Ricardo was designated by the Chilean State and Máximo Torero, Executive Director of the World Bank, to carry out this important function for a period of six years.

“As a lawyer, it is a great honour to be considered by the Chilean State as a qualified professional for the resolution of highly complex disputes, such as tho s e s ettled by this prest i g i ou s international a r b i t r a t i o n centre…” Ricardo Vásquez told Auscham.

In accordance with the ICSID Convention, those appearing on the List of Abribtrators should have recognised skills in the field of Law and inspire total confidence in the impartiality of their judgements.

We congratulate Ricardo on this recognition, and we are sure that he will carry out his duties as Arbitrator at ICSID with thoroughness and professionalism.


AUSCHAM COMMITTEES Electromobility was the subject of the debate at a recent breakfast organised by the Energy Committee of Auscham. Participating in the event were Claudio Seebach, the Executive Vice President of the Chilean Association of Electricity Generators (AGG), Diego Lizana, Executive Director of the Chilean Agency for Energetic Efficiency, and Gianni López, Director of the Mario Molina Centre. All of them agreed about the multiple opportunities that this “fourth industrial revolution” open up for Chile and the importance of preparing right now for the changes that this will bring. Claudio Seebach presented some of the results from the Study about Scenarios for Future Uses of Electricity carried out by the AGG and commissioned by E2Biz. He pointed out that electricity could be a transforming agent within the economy, with implications for energetic efficiency, health and climate change. “One of the greatest s faced by Chile today is pollution of city air, but we could make our system more sustainable if we reduce the use of fossil fuels. We have a clear opportunity in the electrification of land transport. New technologies now allow the reduction of investment costs and they are also more efficient: an electric bus requires four times (75%) less electricity than one that runs on fossil fuel”, explained Seebach.

He made reference to the gradual advances with the Transantiago system where this technology is being progressively introduced. Today there are already two buses operating with this technology on the Santiago streets, but in the latest bidding process 90 buses of this type were specified to come into operation by the year 2019. For 2025, it is projected that 25% of the fleet will be electric. He added that the focus should be on the benefits that can be provided through the energetic efficiency of electromobility. The final speaker, Diego Lizana, coincided in the need to come up with solid public policies to bring together the work being done by various government ministries. “The benefits in these matters should be centralized in energetic efficiency” he emphasised. “The point is how to achieve this revolution without getting left behind as a purely mining country”, he added. He reminded the audience that this is a multidimensional subject. “Today, for example, there is much academic work focused on generating the capacity for handling these new technologies and for adapting correctly to the new scenario”, he explained.

Gianni López, meanwhile, emphasised the need to move forward with close coordination between the public and private sectors, since electromobility could open up opportunities for development in Chile without the traditional reliance on copper. “It could make a tremendous impact on productivity, if we are able to think across a wider spectrum” he pointed out.

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PRODUCTS AND SERVICES

Intermodal Solutions Group (ISG) Pit to Ship Solutions ISG is a global company with ports using our system in South Africa, Tanzania, Mexico, Brazil, Peru, Chile, Cuba, Argentina and Australia and New Zealand and moving urea from Bolivia to Brazil.

• Port of EPA in Chile, copper from Bolivia • Port of PVSA in Chile, moved by FEPASA, copper for Codelco • Port of Rosario in Argentina, grain from various countries • Port of Matarani, copper for the Las Bambas project • Port of Guyamas in Mexico, copper from Arizona in the USA • Port of Manzanillo Mexico, copper for various companies • Bolivia urea to river ports in Brazil

How the system works The product is loaded at the mine site and the lid is placed onto the containers. The containers are transported to the port using either road or rail transport. Once at the port, the containers are used as storage sheds. When the ship arrives at the port, the containers are taken to the quayside using conventional port infrastructure. The port cranes have the tippler More information and a video of our system in attached to them, and they pick up the containers action around the world are available on our and place them into the ships hold, using the ISG website www.pittoship.com patented lid lifting system. The lids are automatically taken off and the containers turned 360 degrees, so all the product is tipped into the ships hold. The lid is replaced and the containers are then returned to the mine site to start the loop again. ISG is the agent for RAM and the patented lid lifting system is used on their tipplers when using the ISG patented bulk containers. This system has been given the green tick of approval by the EPA in Australia. Current projects completed and in operation: • Port of Mariel in Cuba • Port of Angamos , copper for Codelco

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PRODUCTS AND SERVICES

Edge Environment opens Edge Chile, catalysing sustainable change in the South American nation Edge Environment is excited to announce the launch of their first international office. Director of Projects, Ken Lunty recounts all the intentions and coincidences that brought the Edge Chile idea to fruition. We at Edge Environment opened our first overseas office, in Santiago, Chile, in July 2017. I already feel like I’ve got one of the best jobs in the world, but discussing how we could create economic, environmental and social value on the other side of the world really topped it off. So, why Chile, you ask? A coincidence Six years ago, Michelle Senerman, a business administration graduate from Chile studying a Masters in Sustainability at University of Sydney, walked into our office. Edge had collaborated with her workplace back home, Fundación Chile (a not-for-profit think tank, similar to CSIRO), and she quickly convinced us she’d be a valuable addition to our team during her year in Sydney. She became our much-loved, hardworking intern and, over the next six years, she returned regularly to deliver projects with us in various capacities. Her deadly combination of business smarts, sustainability passion and infectious personality makes her perfect for the work we do. However, in late 2016, Michelle returned to Chile permanently. It was a sad goodbye, but it wasn’t the last we’d hear of her.

Determination, confidence and passion Fast-forward to April, 2017 and Michelle is back in Sydney – sitting in front of the Edge board making a business case to support a branch in Chile. During her six months in Chile, Michelle had launched a sustainability consultancy in Santiago with colleague Camila (lawyer and LLM of Pontifícia Universidad Catolica of Chile) called Mari Mari (meaning ‘hello’ in the local indigenous language) and had employed a further colleague, Javiera. They won a number of projects with the Ministry of Environment, Concha y Toro (the largest producer of Latin American wines) and Fundación Chile. Michelle saw that Mari Mari’s vision and mission mirrored that of Edge Environment, so the team of three travelled to Sydney at their own expense and delivered a compelling pitch to become Edge Chile. Drawing parallels So, Jonas and I are in route to Santiago, excited and curious about what lay ahead. Edge Chile had

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PRODUCTS AND SERVICES a jam-packed agenda for our trip; most importantly a long list of clients to meet, including the Ministry of the Environment, the Chilean Chamber of Construction, the Chilean Food Industry Association, Falabella, and various other local champions of sustainability. We quickly learned how different it is to do business in Chile, but how similar their issues are to ours in Australia. The Chilean borders map out a large area of mostly rugged and harsh landscape. The population is relatively small and dispersed across the country, concentrated around cities (anyone thinking what I’m thinking yet?). Mining and agriculture are the country’s main economies and there is significant investment in infrastructure (yes: Australia and Chile are more similar than you’d think). Our conversations with the Ministry of the Environment echoed those we have had here with the Office of the Environment and Heritage. Discussing sustainable infrastructure with the Foreign Affairs Manager of the Chilean Chamber of Construction made me realise how much an ISCA-style tool could drive industry change over there like it has here. We saw countless opportunities to help clients in Chile develop in a sustainable way. Walking back to our modest Edge Chile office, we saw posters promoting sustainability in the local government area. There is a clear agenda for this emerging economy to grow more sustainably and learn from the mistakes of the developed nations who might have done things differently if they had the hindsight.

worth it; we were in a start-up business again. The Edge Chile team, which by then had grown to five (hello, Mariana and Felix) stayed up late working with us and soaked up every shred of information and experience we could give them. Our last three days were spent in the seaside resort town of Valparaiso. Michelle and Camila h a d organis ed a tour of restaurants, bars and sights, and it didn’t disappoint. The beaches were beautiful, the pisco sours were refreshing and the food delicious… but the conversation always came back to the same thing: “How can we build a successful business that catalyses change?” Yes, we spent those last three days discussing strategy, developing proposals and thinking about opportunities every chance we got. And our four-hours-a-night average persisted for the rest of the trip. The week had felt like two and we all agreed that it had gone better than we could have imagined. There is a lot of work ahead, but we have the right team over there; a passionate team who love what they do and know where to find opportunities to change their country. It’s been over a month since we arrived home and our teams are fully integrated: we’ve adjusted weekly meetings so Edge Chile can join; we’ve developed joint proposals using staff from both offices. It really feels like one Edge. It will be interesting to see how everything goes in the next few years but I am confident that there will be many more trips across the Antarctic for our staff to share knowledge between these two countries that seem so different but have so many similarities.

Success will come down to good chemistry Our first five days were spent meeting clients, implementing business processes and keeping up with delivery deadlines in Australia. We were averaging four hours’ sleep a night but it was *Michelle Senerman *Camila Ulloa

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THE MARKET

Project to strengthen the SERNAC

By: María José Martabit and Andrés Salas, lawyers from the Consumer Advertising and Law group at Carey y Cía.

(National Consumer Service) The proposed legislation designed to modify the Protection of Consumers Rights Law (“LPC” from the acronym in Spanish) is known as the “Bill to Strengthen the SERNAC” (“the Bill”). This is because its principal modifications to the present Law are focused on strengthening the SERNAC by giving it greater powers. In this new scenario, companies will have to take the necessary measures to adapt to new legal requirements in order to avoid possible infractions of the law.

II. INCREASED FINES AND LONGER STATUTE OF LIMITATION PERIOD The Bill proposes a significant increase in the fines established in the LPC. Most of these fines will increase by up to six times, reaching in some cases as much as 2,250 UTM (U$167,038). Furthermore, the Bill increases from six months to two years the statute of limitation period for the imposing of fines. This period will start from the time that the infraction ceases.

The Bill has already been passed by the Lower Chamber is presently being discussed by the III. PUNITIVE DAMAGES FOR THE SUSPENSION OF Upper Chamber with urgent status, and will soon BASIC SERVICES In the case of suspension, stoppage or unjustified be voted upon. failure to provide basic services (drinking water, Here is a summary of the principal changes being gas, electricity etc.), the Bill includes the obligation of the supplier to compensate the proposed by the Bill: affected consumers for each day without services, for an amount equivalent to ten times I. NEW POWERS FOR THE SERNAC The Bill gives new Powers to the SERNAC, the average daily value of the service. This including the following: i) the right to perform compensation will be paid by discounting the inspectionary control procedures on suppliers; respective amount from the following bill sent ii) the direct imposition of fines in individual out. sanctioning procedures related to infractions of the LPC; and iii) the establishment of regulations For the calculation of this compensation, it will or instructions of a general nature that complement be understood that a day is considered without the LPC. supply every time that the service has not been

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THE MARKET provided for four continuous hours or for four V. LEGAL IMPEDIMENT OF DOUBLE ADMINISTRATIVE hours within a 24 hour period. SANCTIONS A relevant modification included in the Bill, IV. MODIFICATIONS TO LPC PROCEDURES designed to resolve the overlapping of powers 1. New administrative sanctioning procedure between the SERNAC and other sectorial before the SERNAC regulatory bodies, is the express prohibition to A new procedure is created to defend individual apply an additional sanction when this is based interests to be substantiated before the SERNAC on the same facts and fundamentals or legal itself when the supplier has not been able to purposes as a sanction previously imposed by reach a prior agreement with the consumer or a sectorial authority. Consequently, the same with the SERNAC. This procedure will be offender may never receive two or more substantiated before the Regional Management, administrative sanctions for the same facts and the final resolution will be issued by the and fundamentals or legal purposes. Regional Manager. In conclusion, this Bill strengthens the SERNAC, A claim of illegality may be made against the giving it a much more active role in the protection final decision before the Local Police Courts that of consumer rights. Therefore, companies will correspond to the domicile of the consumer. have to take the necessary measures to adapt to the new standards imposed by the Bill, 2. Collective action thereby preventing possible infractions. The principal modifications made in collective action are as follows: a) Compensation for non-material damage is expressly included; b) The judge will be authorised to impose a fine for every consumer affected when the nature of the infraction so merits, with the restrictions indicated in the law and with the proviso that the compensation may never exceed the absolute global limit of 45,000 UTA (U$ 40,089,215). 3. New voluntary procedure for protecting collective interests A new procedure is created as a special a d m i nistrative procedure within the resp onsi b i l i ty of an independent, specialised un i t of t he SERNAC , corresponding to the legal enshrining of what is presently known as “collective mediation�. This process may only be initiated if collective actions have not been brought in relation to the same facts.

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CORPORATE SOCIAL RESPONSIBILITY

Rayün Down Foundation The Rayün Down foundation is a non-profit institution set up on 2012 to support the development of people with down syndrome, as well as their families and those around them, in a manner that reflects an updated vision of international tendencies. The word “Rayün” in mapudungun means “to flourish”, and this is precisely the transcendental spirit of the organisation. It focuses on children and young people from birth until the end of their school years, and comprises an active group of directors, families, support networks, and multidisciplinary teams from areas such as special needs education, speech therapy, occupational therapy, physiotherapy, art therapy, psychology and physical education. This varied human group works on a daily basis to provide systemic support, also aiming to transform the culture of our country into an inclusive society where we can all live and participate, breaking down the

barriers of exclusion in this particular sector of the population. At Rayün, we develop a number of inclusive educative, social and cultural projects that may be financed by the public and private sectors. We would therefore like to extend an invitation to all those who are interested, to participate in advancing the transcendental values of the institution. We have a policy of institutional transparency, and there are tax benefits for our donor, based on various donation laws. If you would like to know more about our institution, we invite you contact us: Avda Príncipe de Gales 5861 La Reina, Santiago Chile Fono: +56225015154 www.rayundown.cl

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Auscham Magazine N°35  
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