Chile, with the most sophisticated seed production system in Latin America is an important client and competitor of the U.S. planting seed industry. Its geographic isolation and mild climatic conditions help prevent pest and disease problems; climatic and soil similarities with California have enabled significant technology transfer in vegetable seeds; and counterseasonal production with respect to the Northern Hemisphere has made it a popular center for the multiplication of U.S. cultivars for re-export. U.S. field corn seed is grown out in Chile and re-imported: According to U.S. trade data for MY 2001/02, the United States shipped 512 tons of seed corn to Chile worth $1.9 million, mainly during the summer (July-October 2001), and imported 49,000 tons of seed corn from Chile worth $81.8 million, almost entirely during March and April 2002.

In MY 2001/02, the United States accounted for a 42% share of Chile’s large, $17 million planting seed import market. The EU ($3.9 million), New Zealand ($1.2 million) and Argentina ($1 million) were other leading suppliers. Corn seed accounted for 32% of total seed imports, vegetable seed was the second largest category at 28 percent. Eighty-five percent of seed imports from the United States were corn or vegetable seed. Sugar beet seed also figured prominently in Chile’s seed import statistics at $1.7 million (all from the EU).