It covers payment methods and information on, banking systems, foreign exchange controls, and U.S. and correspondent banking.
Selling to the Government
The U.S.-Chile FTA calls for open tendering, including the name of the supplier and the value of the contract. The FTA provisions cover all non-construction procurements by over twenty Chilean central government entities, as well as local government agencies. The agreement also calls for non-discriminatory “national treatment” for either country’s suppliers. Tender opportunities should be published at least thirty days in advance and technical specifications or requirements should be performance-based. The agreement further establishes an impartial authority to review any challenges filed against specific procurement awards. Many governments finance public works projects through borrowing from the Multilateral Development Banks.
ChileCompra, the Government of Chile procurement website, was established in March 2000 to serve as the central source for all Chilean government procurement, including the armed forces. The site is administered by the ChileCompra Directorate to increase transparency, enhance opportunities, and reduce government procurement costs. In 2019, ChileCompra facilitated more than $10 billion in purchases.
To participate in public tenders, all companies, local and foreign, must register free of change on MercadoPublico. Instructions on how to register (only available in Spanish) can be found here. All bidders must post a bank and/or guarantee bond, usually equivalent to ten percent of the total bid, to ensure compliance with specifications and delivery dates. Bidding is best done through a local agent who is registered, well connected, and familiar with Chilean government bidding procedures.
U.S. companies bidding on Government tenders may also qualify for U.S. Government advocacy. A unit of the U.S. Commerce Department’s International Trade Administration, the Advocacy Center coordinates U.S. Government interagency advocacy efforts on behalf of U.S. exporters bidding on public sector contracts with international governments and government agencies. The Advocacy Center works closely with our network of the U.S. Commercial Service worldwide and inter-agency partners to ensure that exporters of U.S. products and services have the best possible chance of winning government contracts. Advocacy assistance can take many forms but often involves the U.S. Embassy or other U.S. Government agencies expressing support for the U.S. bidders directly to the foreign government. Consult Advocacy Center on foreign government contracts.