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When Chilean fruit is loaded on a ship bound for the US Eastern Seaboard, chances are it is headed to the Port of Wilmington in the state of Delaware. The port, which is a short two-hour drive from New York, is a powerful economic engine for the state partly thanks to imports of Chilean fruit and specialty chemicals which have created around 650 jobs there.

So when Jack Markell, the Governor of Delaware, led a trade mission to Chile in August he thanked Chilean companies for their contribution to the state’s economy and also offered to work closely with new suppliers to help them gain a foothold in the US market.

Speaking at an AmCham breakfast on August 16, Governor Markell said Chile and Delaware share a “can do attitude” and strong business ties.

The Governor lived in Chile for six months in the 1980s, while working for the First National Bank of Chicago, and said he was “very impressed” with the way Chile has developed since then. “It’s incredible,” he added.

“We are here to figure out how we can forge stronger ties with Chilean companies and to let our customers know they are valuable to us,” said Markell.

That’s partly because of more competition. Chilean exporters have more options these days especially in Asian countries like China, which is Chile’s number one customer. As a result, Delaware must work harder to keep its Chilean suppliers happy, especially given the current economic uncertainty in the United States, the Governor pointed out.

“We’re not entitled to have your business tomorrow just because we had it yesterday,” he told AmCham members and their guests.

For example, some Chilean fruit growers told representatives of the Port of Wilmington they would be unable to supply fruit due to previous commitments to Asian buyers.

“You have choices which is good news for Chile, but it shows that resting on our laurels is not good enough anymore,” said Markell, adding that US companies have to adapt to the new reality of tougher competition.

This means meeting suppliers face-to-face and figuring out their needs, which was one of the aims of the Delaware trade mission, Markell explained.

“Nobody makes decisions based on altruism so we are working on behalf of the companies in our state to show why Delaware is a good choice,” he said.

Delaware is a small state but it is strategically located between Maryland, New Jersey and Pennsylvania. More than half of the Fortune 500 companies are also incorporated there including Dupont, W.L. Gore, which produces Gore-Tex and medical devices, the pharmaceuticals firm AstraZeneca and the specialty chemical firm Ashland.

The state also has some of the country’s top corporate law firms, which means there is plenty of legal advice available for Chilean companies wishing to enter the US market, said Markell.

But trade is not all one way. Delaware is a major poultry exporter and wants to add Chile to its list of customers, said Markell.

The state is also a leading producer of specialty chemicals and its auto industry, which collapsed after the 2008 financial crisis when its Chrysler and GM plants closed, has been reborn as a green vehicle industry.

The Chrysler plant has been bought by the University of Delaware and a Silicon Valley-based company called Bloom Energy, which makes fuel cells, plans to convert it into a factory, said Markell.

Meanwhile, the GM plant has been bought by Fisker Automotive, which will start making hybrid cars in 2012. “The likes of Leonardo DiCaprio and Al Gore will get the first vehicles, but soon this plant will be producing cars for around US$40,000,” said Markell.

Bloom Energy was founded by an Indian and Fisker by a Danish entrepreneur, which shows there are opportunities in Delaware for entrepreneurs from around the world, said Markell.

But the biggest opportunities for Chilean companies are in the Port of Wilmington, which is a gateway into the US market. The United States is not the only country competing for Chile’s produce and as a result exporters are in a position to negotiate better conditions, but it remains a huge and important market.

As Governor Markell pointed out, greater choice is good for Chilean companies but it means US importers have to work harder to earn their business and get to know their suppliers. Santiago is 5,000 miles from Wilmington, but Delaware’s Governor has shown his willingness to go the extra mile.

Julian Dowling is Editor of bUSiness CHILE