Why should US companies consider expanding to Latin America?
The short answer is that it’s a huge opportunity for growth and profit. As per the US Department of Commerce more than one-half of the US’s Free Trade Agreements—also known as FTAs—are with the Spanish-speaking countries of Latin America. We’re talking about countries like Chile, Colombia, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama and Peru. The International Monetary Fund forecasts a growth rate of 4.5 percent for these countries in 2014. These nations share a common language and similar business cultures. They have rapidly growing middle classes with a taste for US products and services. Each of the FTA countries have made commitments to open markets with the US. So far this year, US trade with Latin America is up 5.7 percent from 2013. The real question is “what are we all waiting for?”
What do US companies entering in this part of the world need to know well in advance of entering to be successful?
Business in Latin America revolves around people before transactions. It is important to make a time investments getting to know strategic industry and business leaders in addition to business partners and customers.