New Port Tax Threatens Chile’s Fruit Export Competitiveness
The Chilean fruit industry faces a mounting threat to its international competitiveness as the government considers a bill to introduce a new port tax.
Already burdened by rising operating and logistics costs, limited investment in water infrastructure, and higher US tariffs, the sector warns that an additional fee could further erode its global standing.
Industry experts argue that the proposed port charge – expected to be between US$1 to US$2 per metric tonne – would impose around US$3 million in extra logistics costs per season if it is introduced.
Critics also contend that the tax could play into the hands of neighbouring Peru, where major infrastructure investment is transforming the ports of Chancay and Callao. Backed by COSCO and APM Terminals respectively, both ports are undergoing expansive upgrades that should position them to capture a larger share of international cargo flows in the coming years.
Peruvian fruit growers already enjoy competitive advantages through the country’s Agricultural Development Law, which offers a 15 per cent income-tax reduction and accelerated annual depreciation of 20 per cent for hydraulic and irrigation projects.
With these incentives – and rapidly modernising port infrastructure – Peru may gain further ground if Chile proceeds with the new tax, potentially reshaping competitive dynamics for fruit exports in the region.
