Chile has successfully developed non-traditional exports and has upgraded and modernized some of its older noncopper export industries. The aggregate performance of these non-traditional and rejuvenated export industries is satisfactory, but on closer inspection there are signs that the country has not been able to keep upgrading the sophistication of its exports. This paper examines macro level data and then presents and discusses product-specific data. At the level of specific products, the pattern indicates that Chile exports raw materials that have been processed only part way, not finished to suit the needs of final consumers. These findings may be relevant to other countries that are seeking to develop their export industries, and may also be useful for Chile as it proceeds to the next stage of its growth. The authors suggest an explanation for these important and disturbing findings, and invite other explanations. © John C. Edmunds, Francisco Arroyo S., 2011.