Press reports in Chile refer to all exports including the so-called non-traditional sector of fruit. 'In terms of returns over the past four years, exports have stagnated despite the fact that volumes and the number of products have increased' this week's issue of Revista del Campo quoted Rodrigo Ballivián, president of the national exporters' corporation.

The situation is in contrast to that of one of Chile's main southern-hemisphere rivals, New Zealand where exports have doubled over the past 10 years.

Exporters have therefore presented Chilean president Ricardo Lagos with a series of proposals calling for a centralised body which would take overall responsibility for Chile's international trade and lend a coherent framework to exports, focusing on new support and promotion methods. The sector is also calling for a counsel of public and private individuals to dictate export policy along similar lines to NZ, Australian, Irish and Finnish models.

Most important, resources would be targeted at very clear objectives and Ballivián reportedly singles out the EU as the primary focus. 'What we propose over a three year period is that exports increase form $4.66bn to $6bn,' Ballivián is reported. 'And that exports of non-traditional products such as wine and fruitSwhich benefit the most in the first phase of the recent agreement with the EU, increase from 15 per cent of our export basket to represent 28 per cent. In other words, we are talking in very concrete terms about figures.' Meanwhile, University of Chile professor Patricio Meller is reported in the same article warning against direct support through the availability of subsidised financial instruments. But the sector's greatest weakness is lack of innovation, he said.

'In order to be competitive, a country has to innovate and in Chile what is lacking is the stimulation of this process,' Meller is reported. 'This is true of production in general, not just those who export.' Chilean producers and exporters need not only to take on board the innovations of their competitors, but innovate continually themselves.

Key to this is research and development on which Chile spends 0.7 per cent of GDP, compared to its competitors which spend two to three per cent. The composition of this investment also worries Meller. In Chile, 80-85 per cent comes from the public sector and the remainder from the private sector. In competitor countries, this figure is directly inverted.

'In the case of fruit, Chile is the main exporter in a number of markets,' Meller is quoted. 'SBut now our competitors are reacting.'

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