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Thank you for the warm welcome. I am delighted to be in Chile.

Thank you to Alejandro Palma, President of the Australia Chile Chamber of Commerce.

This country has been through a lot since the devastating earthquake of 27 February.

From the other side of the Pacific Ocean, our thoughts have been with you, particularly with the hundreds of people who have lost family and friends, but also with the people who lost their homes, businesses or infrastructure in their communities.

We have been impressed by the determination of the Chilean Government and the Chilean people to move quickly to pick up the pieces and to set about rebuilding.

And Australia remains ready to assist. As part of a A$5 million assistance package, the Australian Government has sent generators, tents and stretchers to assist in the immediate aftermath of the quake.

We have been talking to the Chilean Government about what is needed in the next phase and yesterday I announced that $3 million of our contribution will be devoted to rebuilding child care centres.

I saw yesterday, when I visited Bucalemu with the First Lady, the damage that was done. I visited a childcare centre ruined by the earthquake and tsunami. We have signed a Memorandum of Understanding with the Chilean Government on our assistance for the rebuilding of twelve earthquake-affected childcare centres.

We know that rebuilding is a huge task and that it will be a long-term undertaking.

But there is no question that the strength of Chile’s economy will be a key factor in helping Chile to rebuild and recover.

Successive governments in Chile have set in place firm economic foundations that have served Chile well, and which will be vital in getting the country back on its feet.

Chile has, for example, prioritised trade and investment liberalisation, as well as deregulation and privatisation, and this has created strong commercial opportunities for Chile.

It was against this background Australia and Chile were able to conclude our Free Trade Agreement, which came into force last year.

Australia and Chile are justifiably proud of this agreement, which is a high quality and comprehensive FTA.

It is delivering significant benefits both in Australia and here in Chile. There have already been reports of Australian and Chilean companies increasing their competitiveness or even gaining an edge over rivals, because of the elimination of tariffs in particular areas.

We have made important progress in another area of our trade and investment relationship, with the signing of a Double Taxation Agreement between Australian and Chile.

This agreement will provide certainly and stability of tax treatment and make it cheaper and easier for Australian and Chilean investors to do business.

Chile is a major destination for Australian investment, particularly in the mining sector. Australia’s FDI investment in Chile is more than a billion dollars and there are now more than 120 Australian companies actively trading with Chile, around 70 with offices or companies here.

As many of you here now, I visited the Australian Pavilion at Expomin on Tuesday. I saw for myself Australian expertise in mining services and technology, and the opportunity this creates for Australia and Chile to work creatively to strengthen the relationship.

The Australian expertise on show at Expomin is interesting because the focus is not the resources but the ability to value-add, the competitive advantage, in areas such as water management and safety for mining projects.

Micromine is a good example of an Australian company providing technology and services that adds value and introduces an innovative dimension to Australian mining exports.

Micromine provides advanced 3D software for geological exploration and the modelling and planning of mine operations. The company will open an office in Chile, and sees Chile as its springboard to Asia, and will be able to take advantage of the productivity and efficiency boosts as a result of the ACI-FTA and the Double Tax Agreement.

Australian expertise in water management and safety for the mining sector was also on display at Expomin.

JP Environmental provides services such as advice on water management for the mining industry and reflects the opportunity for Chile to address its serious water shortages.

Australian technology is also at work with a dust suppression product that provides a unique solution to the issue facing mining companies in desert and high altitudes. This product addresses safety and health concerns, as well as having a direct impact on productivity by reducing the amount of water required by 90 per cent and reducing the need for the use of desalinated water.

Australian technology in the area of safety is another example of innovation and the importance of mining services. Australian company Sensear enables miners to talk to each other safely and clearly in high-noise environments.

A significant expression of the confidence in the Latin American market is Australian company Orica, the world’s leading supplier of explosives and chemicals to the global mining industry, and it’s investment in Chile following 7 per cent tariff cuts as a result of the ACI-FTA.

Many other Australian companies have also been attracted into Chile for the first time and are using it as a base to expand into the $4 trillion Latin American market.

I want to encourage you to look at new opportunities that arise and in a creative way so that we can capitalise on the opportunities that exist in third markets. And the values shared by Australia and Chile help to foster those important relationships.

This will benefit your companies. It will help Chile quickly to re-establish itself as a strong economic performer in this region. It will further strengthen the relationship between Australia and Chile.

Likewise, Chilean companies are successfully using Australia as a base for markets in Asia, and leveraging off agreements such as the Australian New Zealand ASEAN free trade agreement.

AANZFTA secures access to a market of 600 million people, with a combined GDP of $A3.1 trillion.

Australia is also negotiating FTAs with China, Japan, Korea and hopefully India.

With APEC, Australia is instrumental in the Trans Pacific Partnership (TPP) negotiations and we recently hosted the first round of TPP negotiations in Melbourne, with three more rounds to come this year. We are on the way to designing a high quality, comprehensive 21st century agreement that will make doing business in the region easier, faster and cheaper.

We know that Australia and Chile are equally enthusiastic about this opportunity to build towards a regional free trade agreement that will deliver significant benefits.

Chile faces enormous challenges in recovering from its earthquake, including in its export sector, through damage to key infrastructure. We must be mindful of this.

However, despite these challenges, we expect trade with Chile to increase.

The Chilean Government clearly understands that trade is a critical part of the recovery jigsaw.

We know that Chile’s Ministry for Agriculture, for example, has been working with industry associations to tackle immediate needs, such as irrigation.

Business has an important role to play in highlighting obstacles to better trade relations and identifying opportunities. Governments need to know what the blockages are so we can try to address them, whether they are regulatory issues or trade facilitation matters.

Finally, I want to touch on the importance of cooperating with Chile on multilateral trade negotiation.

Australia and Chile have long worked together towards our shared goal of trade liberalisation.

We’ve worked together in the Cairns Group, through APEC, and in the World Trade Organization to try to promote trade and investment liberalisation.

It is vitally important that we continue to push ahead on this.

At our meeting next week in Uruguay, Cairns Group countries will discuss how we can continue to create momentum that will feed into the Doha process, including the Ministerial meetings that will provide the political direction that the Doha Round needs.

We need to keep firmly in our minds the benefits of concluding this Round.

The US-based Peterson Institute has estimated the annual boost to world trade could be as high as US$592 billion.

Concluding the Doha Round would be insurance against the protectionism that has the potential to limit trade during future crises. It is important because trade liberalisation is an economic stimulus, without a hit to the Budget.

And we know that trade is a key factor in generating prosperity.

The OECD estimates that a 10 per cent increase in trade is associated with a 4 per cent rise in per capita income.

But I have always said concluding the round would be challenging and would take time, and Business has an important role to play in pushing for progress.

I urge you to continue to advocate for the benefits that the conclusion of the Round will bring.

Ladies and gentlemen.

Australia and Chile’s shared values and friendship are on display when members of your Chamber meet, and also in the commitment to strengthening the relationship between our two countries.

Chile has suffered a devastating earthquake from which it will require determination, hard work and discipline to recover.

The Australian Government will assist in both the reconstruction effort and through working with the Chilean Government and our business communities on trade and investment, which are vital to prosperity.

Australia and Chile understand this well.

And we look forward to continuing to leverage trade and investment to build an even closer relationship, taking advantage of third market opportunities and the shared values and understanding between our two countries.

Thank you.