Jetro director Kojiro Takeshita: Chile offers stability and investment security

Kojiro Takeshita, is director of Japan’s External Trade Office (JETRO) in Santiago. JETRO, or the Japan External Trade Organization, is a government-related organization that works to promote mutual trade and investment between Japan and the rest of the world. After six months in Chile, Mr Takeshita wants Chile to be the base of operations for Japanese financial operations and services throughout the entire Latin American region.

His mission as director of JETRO is to bring together Japanese and Chilean companies. As such, Mr Takeshita delivers market information, develops import/export contacts and promotes Japanese business opportunities.

Therefore, the Asia-Pacific Portal spoke with Mr Takeshita on the anniversary of the 2007 signing of the Japan-Chile Free Trade Agreement. We interviewed the Director in hopes of learning more about how JETRO can help open doors to foreign businesses in one of the world’s most demanding markets: Japan.

What is JETRO’s role?

Jetro is a Ministry of Economy, Trade and Industry cooperation agency. We have 73 offices throughout the world that promote business opportunities between Japanese and foreign firms.

As such, we have three types of activities. First, we organize events and business meetings between businesspeople. Second, we sponsor business missions or foreign government delegations visiting Japan; or groups of our entrepreneurs and experts to other nations, to exchange information or learn about other business philosophies. And thirdly, JETRO researches the political and economic systems of other countries.

In Latin America we have nine offices: Mexico, Costa Rica, Panama, Venezuela, Brazil, Colombia, Argentina, Peru and Chile.  Across the region, we are focusing on new business in terms of energy efficiency, commitments related to the Tokyo treaty, and clean energy. We are now focusing on technical assistance in this regard.

What are JETRO’s main activities in Chile?

For example, last year we organized a seminar on clean energy and holding another in November 2008.

Another activity is advising on how to improve food packing processes. This is done in order to help Chilean exports be more value-added as they ship to Japan, and so that they can meet the Japanese market’s quality standards.

In October 2008, we will hold seminars in Santiago, La Serena and Puerto Montt on this very issue. They will be held jointly with Pro-Chile, and we will explain exporting to Japan and how to take advantage of the FTA signed in 2007.

In August, we sent examples of Chilean products to Japan, and the parent organization of JETRO organized a meeting with experts to assess their quality and potential for our market. This is part of the free advising program being done for eight Chilean companies, in a one-year plan. When this advising or training ends the firms will participate in the Tokyo Supermarket Trade Show in February. JETRO will help these companies, many of which are SMEs, set up a booth and display their products.

Why is product packaging training so necessary for Chilean exports destined for the Japanese market?

It is very important for Chile to expand its international market, and better packaging extends product life. Today, (Chilean products) are capable of reaching US markets. But if we prolong their quality, we can ship them to Asia, too.

Faulty packaging may cause food products to lose color, flavor or quality. Therefore, in order to enter the demanding Japanese market it is vital to improve and meet its standards in this regard. In this way products reach the market in their best state possible.

In this aspect the design of the packaging is also very important. In order to do new business, one needs to adapt to consumer tastes. For example, the Japanese do not like canned food, that's why they use other types of boxes (packaging). There are many opportunities in this regard.

On the energy issue, Chile is analyzing and discussing new forms of (power) generation. One possibility is nuclear power, where Japan has experience. Is this type of outreach is also part of JETRO?

Several years ago we received a request from the Japanese government to pay attention to the issues of energy efficiency. The nuclear issue is included (in this area).

There exists the possibility of establishing nuclear projects. We can cooperate in carrying it out, but there has been no request (for help) in this regard. So far we are focusing on issues of implementation of energy efficiency in industrial production processes, and not so much on power generation.

Japan also is strong in solar power generation. Are you interested in this topic?

Many Japanese companies are interested in the topic of solar energy, especially photovoltaic cells (solar panels that produce electricity).

Japanese companies are exploring new markets, after having set up projects in Europe, (we hope) to continue with the United States and Latin America. But in countries where it operates, there are government subsidies or some form of incentives. So as long as there is no such incentive in Chile, the Japanese companies will not be safe to come; although there are great potentials for this type of energy use in Chile.

But photovoltaic technology has advanced and reduced costs, so we will see a reduction in their prices in the coming years.

The other issue is that the Chilean market is not large, but energy demand from the mining sector is enormous. According to a study made by JETRO on this issue, there is potential in this sector.

Another aspect of JETRO advising is that it advises companies, including SMEs, who are interested in Asian markets but will face major challenges in that region. How does JETRO help these companies?

Chile and Japan have an FTA. There are views which say that only large companies can benefit from this scheme. But we want to disseminate information to SMEs so they too may benefit from the treaty.

In that sense, we have the seminars that we have mentioned, especially in the Regions, where we want to disseminate more information. We are particularly interested in the topic of food exports to our country, and, for that, SMEs are important. But in Japan they are also our focus.

For companies in Chile, this FTA is very advantageous, because it allows tariffs to be much lower in Japan, so they should take advantage of it.

Are there opportunities for Japanese companies investing in Chile, that installed their offices here?

The problem is that Japanese firms have their South American offices in Brazil, especially in Sao Paulo. So we want to organize a seminar on the (Japan-Chile) FTA in this country (Chile) so that our businessmen are aware of what our FTA is all about.



One option (for these Japanese firms) is to set up their headquarters in Chile. Not only because of the FTA (it has), but also because of its political and economic stability, Chile has better infrastructure, and a much safer society, with less risk and greater guarantees from its system of government. Although I understand that the production sectors prefer larger markets such as Brazil, the financial sector or service can still be installed here.