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President Barack Obama and his wife, First Lady Michelle Obama, spent less than 24 hours in Chile in between visits to Brazil and El Salvador in March, but Chile – in President Obama’s own words a country “at the end of the world” - was not just a stopover on his first official visit to Latin America.

The close relationship between the United States and Chile is based on shared principles of democracy, freedom and entrepreneurship as well as a Free Trade Agreement that came into force in 2004 and has seen bilateral trade more than double in that time.

For the Obama administration, Chile represents the ideal Latin American nation – a strong democracy with a business friendly environment that is relatively free of corruption and organized crime.

Of course, Latin America is comprised of a diverse group of countries with different styles of government, leadership, levels of economic development and bilateral issues with the United States.

Mexico and Central America are the focus of on-going efforts by the U.S. government to combat drug and human trafficking. Brazil, for its part, is a huge market with large offshore oil and gas reserves that could help meet U.S. energy needs in the future.

Chile, by comparison, is a tiny market, but it has embraced globalization and trade while sharing with the United States a vision that promoting innovation is critical to capturing the opportunities of the 21st century economy.

So it was no coincidence that President Obama chose Chile as the platform to deliver a key speech on Latin America’s progress and his vision for “a new era of partnership” with the United States.

Speaking at the heavily guarded La Moneda Cultural Center before the world press and Chile’s political elite, including its current President, Sebastián Piñera, and three previous presidents: Aylwin, Frei and Lagos, President Obama hailed the country’s peaceful transition “from dictatorship to democracy.”

He also praised its economic progress: “Despite barriers of distance and geography, you’ve integrated Chile into the global economy, trading with countries all over the world,” he said.

The United States is Chile's second largest goods trading partner overall and in 2011 they plan to expand their FTA by eliminating tariffs on 134 products.

But President Obama noted more can be done to increase trade and he agreed with President Piñera to “fully implement” the FTA to include protection for intellectual property “so our businesses can innovate and stay competitive.”

He also pointed out that the U.S. is working to join the Trans-Pacific Partnership (TPP) agreement, of which Chile is already a member, by the end of 2011 to boost trade in the Asia-Pacific region, especially for small and medium size companies.

In addition to trade, Obama identified priority areas including security, entrepreneurship, education, energy and democracy where Latin American countries could benefit from working closely with the United States.

In security terms, Obama praised Chile’s support for international nuclear non-proliferation efforts and its decision last year to ship its remaining highly enriched uranium to the United States for disposal. Chile is also sharing its expertise with Central American countries to fight drug trafficking and organized crime, he said.

Energy is another key area of cooperation. A few days before Obama arrived in Chile, and controversially in the midst of Japan’s nuclear crisis, the U.S. and Chile signed a nuclear cooperation agreement. Although there are no plans (yet) to build a nuclear plant in Chile, the agreement should pave the way to closer energy ties.

President Obama also emphasized cooperation in clean energy and climate change. He announced the creation of a new U.S.-Chile Energy Business Council, focused on energy efficiency and renewable energy, and Chile has agreed to host a new regional center to study glacial melt in the Andes.

Education is another area where U.S. universities and research institutions can support development in the region. Obama announced two initiatives: a plan to use social media to help students, academics and entrepreneurs collaborate, and an initiative to increase the number of American students studying in Latin America to 100,000 and to receive the same number of Latin American students in the U.S.

Finally, Obama called on Chile and other countries to “recommit” to defending the values of democracy and human rights across the region including in Cuba.

President Kennedy’s Alliance for Progress plan, announced 50 years ago, to provide aid to Latin America was well-intentioned, said Obama, but “the realities of our time - and the new capabilities and confidence of Latin America - demand something different.”

That means more participation by Latin American countries in shaping their own destiny: “I believe that in the Americas today, there are no senior partners and there are no junior partners, there are only equal partners,” said Obama.

Chile is clearly not the United States’ equal in many respects, but it is well-regarded for its sound economic management and national unity in the face of recent disasters.

In his concluding remarks, Obama referred to the drama of the 33 miners last October when Chile, watched by the world, led a successful international rescue effort that included U.S. and Canadian drilling teams.

“When a country like Chile puts its mind to it, there’s nothing you can’t do,” said Obama.

After attending a dinner hosted by President Piñera and his wife, Cecilia Morel, that evening, President Obama and his family departed early the next day for El Salvador, but the afterglow of his visit will linger for months and years to come.

Latin America’s challenges remain huge, including high levels of poverty and inequality in many countries including in Chile, and the role of the United States in the region is as important as ever. But Chile can be proud that, at least in President Obama’s eloquent words, it is an equal partner with much to offer the region and the world.

Julian Dowling is editor of bUSiness CHILE