Change of power in Chile could have implications for salmon industry

Kast beat his left-wing opponent, Jeannette Jara, by around 58% to 42%. She had been a minister in the cabinet of the outgoing socialist president, Gabriel Boric.

As well as running on an anti-migrant ticket, Kast has stressed he supports deregulation for business and believes that government red tape is stifling growth.

For the salmon industry in particular, he has been critical of the “Lafkenche Law”, legislation that was intended to hand back control of specific areas of the coast, those they have traditionally fished, to Chile’s indigenous people, who make up around 13% of the population.

The law establishes a mechanism for Indigenous communities to request the designation of a Marine Coastal Space for Indigenous Peoples (ECMPO).

Once that process is started, commercial projects such as new salmon farms or port facilities must be put on hold until the ECMPO is in place. Although the law is supposed to protect existing commercial operations, the Lafkenche process can in effect block expansion for upgrades for existing facilities, and it has proven very unpopular with the salmon farming companies.

Kast has described the operation of the law as “institutional sabotage” and is on record as saying, “What began with a legitimate purpose has been distorted into a tool of political blackmail.”

He has said that reform is possible without compromising environmental standards, however.

His position is strongly aligned with the salmon farming industry’s desire to reduce regulatory burdens and streamline processes for expansion, particularly by reforming the laws that empower indigenous groups and environmental bodies to block or delay new developments.

It will not be welcomed, however, by those advocating for indigenous rights or the anti-fish farming lobby in Chile.