Doing Business In Latin America

Latin America represents a population of over 560 million people. This emergent market has been put on the spotlight since the economic crisis has hit the world as most of its countries have weathered the storm and kept positive growth rates.

The region also has been showing steady population growth, stable democracies and a desire to be strongly present on the international economic scene. International companies have just recently seen the untapped opportunities of this emergent market and have put the region on top of their list to increase their distribution channels. These are great reasons for doing business Latin America

This region is sectioned into North America, Central America and South America.

It represents 20 countries:

• Mexico
• Belize
• Costa Rica
• El Salvador
• Guatemala
• Honduras
• Nicaragua
• Panama
• Argentina
• Bolivia
• Brazil
• Chile
• Colombia
• Ecuador
• French Guiana
• Guyana
• Paraguay
• Peru
• Suriname
• Uruguay
• Venezuela.
  

A Trade bloc is basically an agreement between countries to give preferential trade tariffs to encourage and promote trade.

The main blocs that deal with Latin America are:

• Caricom
• Mercosur
• Andean Community
• G3 Free Trade Agreement
• DR-Cafta
• CACM Central America

Latin America is one of the most diverse regions of the world. Languages that are spoken are Spanish, Portuguese, French, Dutch and several other dialects. With this diversity also comes the differences in cultures. This is why it is extremely important to understand the various etiquette of each country beforehand in order to make any a possible business transaction go as smoothly as possible.

Things you should research about are dress codes, conversation topics to avoid, meeting etiquette, acceptable negotiation strategies, successful business entertainment and recommended gifts to give to business partners.

The demand for Organic products are increasing worldwide. Consumers are more and more aware of the importance of eating non chemically treated products and the health benefits that it brings.

Farmers in Latin America has taken an interest in this industry and the region has seen one of the largest surge in organic food production since the year 2000.

The following is a list of the most popular organic products in Latin America:

1. Organic banana from Dominican Republic, Colombia, Costa Rica, Honduras, Mexico

2. Organic herbs and from Paraguay

3. Organic Quinoa form Bolivia,

4. Organic sesame seeds from Nicaragua

5. Organic sugar from Paraguay,

6. Organic soybeans from Brazil,

7. Organic wild mushrooms from Ecuador,

8. Organic coffee from Peru, Costa Rica, Colombia and Panama,

9. Organic dried apples from Chile,

10. Organic wheat from Argentina

Fair trade is a social and economic movement based on the ideals of sustainability and equality in international trade.

This movement was started by activists who protested the exploitation of farmers and artists in emergent countries by bigger, more powerful companies and businesses. Even though large margins and profits were made by these corporations, the local producers of these products were paid very little money and lived in extreme poverty. Fair Trade movement was set to protect these producers and establish a more equitable and balanced trade.

Latin America has greatly benefited from these movements and has experienced a sharp increase in the production of fair trade products. Countries such as Peru, Colombia, Panama, Bolivia, Guatemala are well known for the beautiful arts, crafts and agricultural production such as coffee.

Tax free zones are very important trading platforms in Latin America and the Caribbean. There are areas where companies are allowed to export and import by paying very low duties. These zones were heavily promoted by the majority of the Latin American governments to give a boost to trade and their overall economies.

The biggest and most important tax free zone in Latin America is the Zona Libre Colon which is located in the Republic of Panama in Central America.

B2B signifies a business to business transaction or communication between two companies. This applies to both products and services.

A B2B marketplace is a website that focuses on connecting buyers and sellers for possible business orders.

Features of a B2B marketplace:

1. Search Engine: This is the heart of any B2B trade portal as it allows importers and exporters to find potential business partners

2. Personal Email System: This is like a virtual office where users can send and receive emails within the marketplace. This really makes communication between buyers and sellers therefore boosting online trade.

3. Virtual Showroom or buyer friendly storefront : This is primarily a premium membership where users can have come on top of search engine, get a virtual showroom to properly brand their business and professionally present their products and services.

4. Credit Reports: This is a very useful service for importers and exporters as this allows them to verify the legal and financial past of a company they are about to start business transaction with. This is a great support to take proper decision.

Largest and most Popular B2B Marketplace in Latin America:

Mercatrade.com is currently the largest and most popular B2B marketplace and trade portal in Latin America and the Caribbean. It boost an audience from North, Central and South America yet still cleverly attract businesses interested to do business in the region such as the Chinese, Indian, Europeans and American companies.

If you are interested to expanding your distribution channel to Latin America and the Caribbean while keeping your risk low, you should contact Export Credit Insurance Agencies.

What these companies can do for you is grant an insurance on your order. What this means is that they will absorb the losses if case your clients does not pay.

In return, they will charge you 2% to 3% of the invoice. This is small fee to pay for your peace of mind.

Ever been in a situation where your clients did not pay your company for your orders or services rendered?

A lot of companies find themselves in this situation where their cash flow is directly affected. Small companies are hit even harder.

Thankfully, you can contact an International debt collection agency that can help you collect.

Please click the link below to submit a claim or request information.

Business to business collections No risk - no fee until we collect