- Located on the western coast of South America and bordered by the Pacific Ocean to the west and the Andes to the East, the Chilean wine-growing climate is similar to that of California's Napa Valley and Bordeaux. The Chilean wine industry is known for being consistently free of phylloxera, but political and economic unrest has brought its own source of disorder. The recent establishment of a free market has resuscitated the wine industry, and significant investments have been made, switching the economic focus from domestic production to exports. Chile produces roughly a quarter of the wine Argentina produces, and is known for single-varietal exports, predominantly Cabernet Sauvignon, Merlot and Chardonnay. It's a popular region in the U.S. known for inexpensive and tasty wine. Click for a list of bestselling items from Chile.