THE ULTIMATE AMERICA LATIN GUIDE TO DOING BUSINESS IN *INCLUDES TIPS TO DO BUSINESS IN CUBA
According to the Harvard Business Review, “Latin America is a modern marketer’s dream, and not just because of its size. By 2020, nearly one out of every 10 dollars in the world economy will come from Latin America. The region will soon represent 10% of the global population and 9% of global GDP, with 640 million customers. It also has the fourth-largest mobile market in the world, with social media adoption even surpassing that of the United States”
About Mercatrade.comMercatrade was created with a simple mission in mind: to provi-de effective TRADE MARKETING solutions for businesses that wish to grow their sales in Latin America. Mercatrade fulfills its mission by bringing its users with high quality business informa-tion about Import and export in the region. As trade marketing experts, we also build digital marketing strategies to help you find new B2B clients, execute your communication campaigns and achieve maximum ROI of your brand assets in Latin Ameri-ca.
Chapter 1 Key Economic Data Population Total GDP GDP Growth Rate GDP per capita Inflation Unemployment Rate
Chapter 2 Country Profiles How to do business with Brazil1- Brazil in a Nutshell2- Brazil’s Economy 2.1- GDP Figures (2015), The World Factbook 2.2- Economic Outlook 2.3- Trade and Economic Challenges3- Trading With Brazil 3.1- Trading Partners 3.2- Brazil's Imports and Exports 3.3 - Trading Infrastructure 3.4 - Time and Cost to Import into Brazil 3.5 - Tax Free Zones 3.6 - Brazil Free Trade Agreements4- Brazil’s Business Opportunities 4.1 - Investment Grade 4.2 - Significant Projects 4.3 – Infrastructure 4.4 - Largest Employers 4.5 - General Business Taxes5- Brazil’s Key Industries 5.1 - Largest Industries 5.2 – Brazil’s Technology and Connectivity 5.3 - E-Commerce and Startups6- Visiting Brazil 6.1 - Business and Cultural Etiquette 6.2 - Primary Tourist Attractions 6.3 – Safety 6.4 - Public National Holidays 6.5 - Fun and Interesting Facts 6.6 - The Foodie Scene 6.7 – The Media 6.8 - Emergency Numbers 6.9 - Primary Hospitals and Medical Facilities In Case of Emergency
1234567
8
91011
12
1315171819
20
2122
23
24
25
272829
3031
32
How To Do Business With Mexico1- Mexico in a Nutshell2- Mexico’s Economy 2.1- GDP Figures (2015), The World Factbook 2.2- Economic Outlook 2.3- Trade and Economic Challenges3- Trading With Mexico 3.1- Trading Partners 3.2- Mexico‘s Imports and Exports 3.3 - Trading Infrastructure 3.4 - Time and Cost to Import into Mexico 3.5 - Tax Free Zones 3.6 - Mexico Free Trade Agreements4- Mexico’s Business Opportunities 4.1 - Investment Grade 4.2 - Significant Projects 4.3 – Infrastructure 4.4 - Largest Employers 4.5 - General Business Taxes5- Mexico’s Key Industries 5.1 - Largest Industries 5.2 – Mexico’s Technology and Connectivity 5.3 - E-Commerce and Startups6- Visiting Mexico 6.1 - Business and Cultural Etiquette 6.2 - Primary Tourist Attractions 6.3 – Safety 6.4 - Public National Holidays 6.5 - Fun and Interesting Facts 6.6 - The Foodie Scene 6.7 – The Media 6.8 - Emergency Numbers 6.9 - Primary Hospitals and Medical Facilities In Case of Emergency
How To Do Business With Colombia1- Colombia in a Nutshell2- Colombia’s Economy 2.1- GDP Figures (2015), The World Factbook 2.2- Economic Outlook 2.3- Trade and Economic Challenges
333435
26
373941424346
474849
50
51
52
5455
5657585960
636465
66
3-Trading With Colombia 3.1- Trading Partners 3.2- Colombia ‘s Imports and Exports 3.3 - Trading Infrastructure 3.4 - Time and Cost to Import into Colombia 3.5 - Tax Free Zones 3.6 - Colombia Free Trade Agreements4- Colombia’s Business Opportunities 4.1 - Investment Grade 4.2 - Significant Projects 4.3 – Infrastructure 4.4 - Largest Employers 4.5 - General Business Taxes5- Colombia’s Key Industries 5.1 - Largest Industries 5.2 – Colombia’s Technology and Connectivity 5.3 - E-Commerce and Startups6- Visiting Colombia 6.1 - Business and Cultural Etiquette 6.2 - Primary Tourist Attractions 6.3 – Safety 6.4 - Public National Holidays 6.5 - Fun and Interesting Facts 6.6 - The Foodie Scene 6.7 – The Media 6.8 - Emergency Numbers 6.9 - Primary Hospitals and Medical Facilities In Case of Emergency
How To Do Business With Argentina1- Argentina in a Nutshell2- Argentina’s Economy 2.1- GDP Figures (2015), The World Factbook 2.2- Economic Outlook 2.3- Trade and Economic Challenges3- Trading With Argentina 3.1- Trading Partners 3.2- Argentina ‘s Imports and Exports 3.3 - Trading Infrastructure 3.4 - Time and Cost to Import into Argentina 3.5 - Tax Free Zones 3.6 - Argentina Free Trade Agreements
676972737576
7778
7981
82
84858687
88
89
909192
93
9496
99100
4- Argentina’s Business Opportunities 4.1 - Investment Grade 4.2 - Significant Projects 4.3 – Infrastructure 4.4 - Largest Employers 4.5 - General Business Taxes5- Argentina’s Key Industries 5.1 - Largest Industries 5.2 – Argentina’s Technology and Connectivity 5.3 - E-Commerce and Startups6- Visiting Argentina 6.1 - Business and Cultural Etiquette 6.2 - Primary Tourist Attractions 6.3 – Safety 6.4 - Public National Holidays 6.5 - Fun and Interesting Facts 6.6 - The Foodie Scene 6.7 – The Media 6.8 - Emergency Numbers 6.9 - Primary Hospitals and Medical Facilities In Case of Emergency
How To Do Business With Peru1- Peru in a Nutshell2- Peru’s Economy 2.1- GDP Figures (2015), The World Factbook 2.2- Economic Outlook 2.3- Trade and Economic Challenges3- Trading With Peru 3.1- Trading Partners 3.2- Peru ‘s Imports and Exports 3.3 - Trading Infrastructure 3.4 - Time and Cost to Import into Peru 3.5 - Tax Free Zones 3.6 - Peru Free Trade Agreements4- Peru’s Business Opportunities 4.1 - Investment Grade 4.2 - Significant Projects 4.3 – Infrastructure 4.4 - Largest Employers 4.5 - General Business Taxes5- Peru’s Key Industries 5.1 - Largest Industries 5.2 – Peru’s Technology and Connectivity 5.3 - E-Commerce and Startups
102
103104
105
106
107
110112113114115116117
118119
120
121
122124126127128130
131132133
134
135
6- Visiting Peru 6.1 - Business and Cultural Etiquette 6.2 - Primary Tourist Attractions 6.3 – Safety 6.4 - Public National Holidays 6.5 - Fun and Interesting Facts 6.6 - The Foodie Scene 6.7 – The Media 6.8 - Emergency Numbers 6.9 - Primary Hospitals and Medical Facilities In Case of Emergency
How To Do Business With Venezuela1- Venezuela in a Nutshell2- Venezuela’s Economy 2.1- GDP Figures (2015), The World Factbook 2.2- Economic Outlook 2.3- Trade and Economic Challenges3- Trading With Venezuela 3.1- Trading Partners 3.2- Venezuela ‘s Imports and Exports 3.3 - Trading Infrastructure 3.4 - Time and Cost to Import into Venezuela 3.5 - Tax Free Zones 3.6 - Venezuela Free Trade Agreements4- Venezuela’s Business Opportunities 4.1 - Investment Grade 4.2 - Significant Projects 4.3 – Infrastructure 4.4 - Largest Employers 4.5 - General Business Taxes5- Venezuela’s Key Industries 5.1 - Largest Industries 5.2 – Venezuela’s Technology and Connectivity 5.3 - E-Commerce and Startups6- Visiting Venezuela 6.1 - Business and Cultural Etiquette 6.2 - Primary Tourist Attractions 6.3 – Safety 6.4 - Public National Holidays 6.5 - Fun and Interesting Facts 6.6 - The Foodie Scene 6.7 – The Media 6.8 - Emergency Numbers 6.9 - Primary Hospitals and Medical Facilities In Case of Emergency
136
138140141
142143
144
145146147
148
149151154155156158
159160
161
162
163
165166167
168169
170
How To Do Business With Chile1- Chile in a Nutshell2- Chile’s Economy 2.1- GDP Figures (2015), The World Factbook 2.2- Economic Outlook 2.3- Trade and Economic Challenges3- Trading With Chile 3.1- Trading Partners 3.2- Chile ‘s Imports and Exports 3.3 - Trading Infrastructure 3.4 - Time and Cost to Import into Chile 3.5 - Tax Free Zones 3.6 - Chile Free Trade Agreements4- Chile’s Business Opportunities 4.1 - Investment Grade 4.2 - Significant Projects 4.3 – Infrastructure 4.4 - Largest Employers 4.5 - General Business Taxes5- Chile’s Key Industries 5.1 - Largest Industries 5.2 – Chile’s Technology and Connectivity 5.3 - E-Commerce and Startups6- Visiting Chile 6.1 - Business and Cultural Etiquette 6.2 - Primary Tourist Attractions 6.3 – Safety 6.4 - Public National Holidays 6.5 - Fun and Interesting Facts 6.6 - The Foodie Scene 6.7 – The Media 6.8 - Emergency Numbers 6.9 - Primary Hospitals and Medical Facilities In Case of Emergency
How To Do Business With Cuba1- Cuba in a Nutshell2- Cuba’s Economy 2.1- GDP Figures (2015), The World Factbook 2.2- Economic Outlook 2.3- Trade and Economic Challenges
171172173
175
176178180181
185
186187188
189
190
190
192193194
195196197
198199
200
201
3- Trading With Cuba 3.1- Trading Partners 3.2- Cuba ‘s Imports and Exports 3.3 - Trading Infrastructure 3.4 - Time and Cost to Import into Cuba 3.5 - Tax Free Zones 3.6 - Cuba Free Trade Agreements4- Cuba’s Business Opportunities 4.1 - Investment Grade 4.2 - Significant Projects 4.3 – Infrastructure 4.4 - Largest Employers 4.5 - General Business Taxes5- Cuba’s Key Industries 5.1 - Largest Industries 5.2 – Cuba’s Technology and Connectivity 5.3 - E-Commerce and Startups6- Visiting Cuba 6.1 - Business and Cultural Etiquette 6.2 - Primary Tourist Attractions 6.3 – Safety 6.4 - Public National Holidays 6.5 - Fun and Interesting Facts 6.6 - The Foodie Scene 6.7 – The Media 6.8 - Emergency Numbers 6.9 - Primary Hospitals and Medical Facilities In Case of Emergency
How To Do Business With Panama1- Panama in a Nutshell2- Panama’s Economy 2.1- GDP Figures (2015), The World Factbook 2.2- Economic Outlook 2.3- Trade and Economic Challenges3- Trading With Panama 3.1- Trading Partners 3.2- Panama ‘s Imports and Exports 3.3 - Trading Infrastructure 3.4 - Time and Cost to Import into Panama 3.5 - Tax Free Zones 3.6 - Panama Free Trade Agreements
202204206
207207
208209
210
211
212214215
216217
218219
220
221
222224226228229
4- Panama’s Business Opportunities 4.1 - Investment Grade 4.2 - Significant Projects 4.3 – Infrastructure 4.4 - Largest Employers 4.5 - General Business Taxes5- Panama’s Key Industries 5.1 - Largest Industries 5.2 – Panama’s Technology and Connectivity 5.3 - E-Commerce and Startups6- Visiting Panama 6.1 - Business and Cultural Etiquette 6.2 - Primary Tourist Attractions 6.3 – Safety 6.4 - Public National Holidays 6.5 - Fun and Interesting Facts 6.6 - The Foodie Scene 6.7 – The Media 6.8 - Emergency Numbers 6.9 - Primary Hospitals and Medical Facilities In Case of Emergency
Sources
230
231233
234
236
237
238240
241242
243
244
204,259,812
121,736,809
46,736,72843,431,886
30,444,999 29,275,460
17,508,26011,031,433
3,657,024
POPULATION
BRAZIL MEXICO COLOMBIA ARGENTINA PERU VENEZUELA CHILE CUBA PANAMA
0
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
The World Factbook (2015 est.)
2
$ 3.192 trillion
$ 2.227trillion
$ 972 billion
$ 667.4 billion $ 515.7
billion $ 422.4billion
$ 398.1billion
$ 128.5 billion
$ 87.2billion
TOTAL GDP
BRAZIL MEXICO COLOMBIAARGENTINA PERUVENEZUELA CHILE CUBA PANAMA
Purchasing power parity (2015 est.)
3
8%
6%
GDP GROWTH RATE
4%
2%
-2%
0%
-4%
-6%
-8%
PANAMA PERU COLOMBIA MEXICO CHILE CUBA ARGENTINA
BRAZIL VENEZUELA
-3.8%
1.3%
3.3% 3.1%2.5%
1.2%
-5,7%
5.8%
2.1%
The World Factbook (2015 est.)
4
GDP PER CAPITA
CHILE ARGENTINA PANAMA MEXICO VENEZUELA BRAZIL PERU COLOMBIA CUBA
$15,600
$22,600
$12,200
$10,200
$16,700
$23,500
$21,800
$17,500
$13,800
$25,000.00
$20,000.00
$15,000.00
$10,000.00
$5,000.00
$0,00
The World Factbook (2015 est.)
5
INFLATION RATE140.0%
120.0%
100.0%
80.0%
40.0%
60.0%
20.0%
0.0%VENEZUELA ARGENTINA BRAZIL COLOMBIA CUBA CHILE PERU MEXICO PANAMA
121.7%
9% 4.4%0.1%
3.5%
27.6%
5% 4.3% 2.7%
The World Factbook (2015 est.)
6
UNEMPLOYMENT RATE
COLOMBIA VENEZUELA ARGENTINA BRAZIL CHILE PERU MEXICO PANAMA CUBA
10,0%
9,0%
8,0%
7,0%
6,0%
5,0%
4,0%
3,0%
2,0%
1,0%
0,0%
8.9%
7.6%
6.4%
4.5%
3%
8.1%
6.4%6.1%
4.5%
The World Factbook (2015 est.)
7
2
1- Brazil In A Nutshell
Capital City: Brasilia
Population: 204,259,812 (July 2015 estimate, The World Factbook)
Language: Portuguese
GDP (purchasing power parity): $3.166 trillion (2015 estimate, The World Factbook)
Unemployment Rate: 6.4% (2015 estimate, The World Factbook)
Inflation: 9% (2015 estimate, The World Factbook)
Currency: Brazilian Real
Time Zone: 6 times zones GMT-5, GMT-4, GMT-3, GMT-2. It is impor-tant to note that not all states observe daylight savings time and both Rio de Janeiro and Sao Paulo are GMT-3 during South Ameri-can winter time and GMT-2 during summer time.
Telephone Code: +55
Internet Domain: .br
Electricity Voltage: Voltage varies from 110 to 220 depending on the municipality and state.
10
2.1 - GDP Figures (2015), The World Factbook
GDP: USD $3.192 trillion
GDP growth rate: -3.8% (2015 estimate, The World Factbook)
GDP per capita (PPP): $15,600 (2015 estimate, The World Factbook)
GDP Composition by sector: Agriculture (5.9%), Industry (22.2%), Services (71.9%)
2.2 - Economic Outlook
Brazil is in a state of economic crisis causing much concern over the long-term growth potential of the country. In addition to such economic woes, the political state of the nation is also in disarray with the impeachment proceedings of President Dilma Rousse-ff and a staggering list of resignations and prosecutions of many members of the inte-rim President Michel Temer’s cabinet and ministry. Each month announcements are being made of corruption charges and national fraud by both major businesses and politicians. Safety is also a concern of investors and consumers alike, and many citizens fear that after the Olympics, crime may skyrocket as a lack of money will be available to fund police and special forces that have kept crime down in recent years. All of these factors are contributing to a poor economic outlook for Brazil in the next few years.
2- Brazil’s Economy
11
2.3 - Trade and Economic ChallengesA few of the challenges to the growth in Brazil is the fiscal policies that are not conduci-ve to pursuing more exports and more investment. At this time, fiscal policies have been established to promote consumerism to foster growth instead. The infrastructure conti-nues to be problematic. As furiously as Brazil is working to improve the infrastructure, the vast size of the country and environmental implications make development a massi-ve obstacle.
Another challenge that remains constant is a lack of confidence in consumers and investors. The government administration is taking steps to create more confidence. A new Finance Minister has been appointed to attack the spending problem that exists within the current government infrastructure. This too faces a grand challenge given that much of the spending within the budget is directly connected to mandated expenditures within the constitution. Experts agree that in order to bolster confidence and to secure growth, spending must be significantly reduced; however, it seems new laws affecting their constitution are required to accomplish such a task making the situation highly problematic.
3- Trading With Brazil3.1 - Trading PartnersBrazil has strong trading ties with China, the US, and Argentina in both imports and exports. At this time, limited trade agreements and an economy heavily based on servi-ces have made the distribution between trading partners less drastic than in other Latin American countries. As Brazil continues to consider new trade agreements, partnership distribution is likely to change.
Largest Export Partners (2014): China 19.1%US 12.6%Argentina 6.8%Netherlands 5.3%
Largest Import Partners (2014)China 18.1%US 15.3%Germany 6%Argentina 6%Nigeria 4.2%
12
What does Brasil Import? (2014)3.2- Brazil's Imports and Exports
0.92%
PaperGoods
3.2%
Textiles
0.38%
FootwearandHeadwear
0.80%
Stone and...
0.26%
Precious...
6.0%
Metals
26%
Machines
11%
Transportation
3.2%
Instruments
1.0%
Miscellaneous
1.1%
AnimalProducts
2.1%
Vegetable Products
0.49%
Animal and Vegetable Bi-Products
1.4%
Foodstuffs
20%
Mineral Products16%
Chemical Products
5.6%
Plastics andRubbers
0.29%
AnimalHides
0.079%
Wood...
MIN
ER
AL
PR
OD
UC
TS
WO
OD
PR
OD
UC
T
ME
TA
LS
ST
ON
E A
ND
GL
AS
S
AN
IMA
L A
ND
VE
GE
TA
BL
EB
I PR
OD
CU
TS
PA
PE
R G
OO
DS
VE
GE
TA
BL
E P
RO
DU
CT
S
AN
IMA
L P
RO
DU
CT
S
FO
OD
ST
UF
FS
WE
AP
ON
S
FO
OT
WE
AR
AN
D H
EA
DW
EA
R
AN
IMA
L H
IDE
S
TE
XT
ILE
S
TR
AN
SP
OR
TA
TIO
N
INS
TR
UM
EN
TS
PL
AS
TIC
AN
D R
UB
BE
R
MIS
CE
LL
AN
EO
US
MA
CH
INE
S
AR
TS
AN
D A
NT
IQU
ES
PR
EC
IOU
S M
ET
AL
S
CH
EM
ICA
L P
RO
DU
CT
S
Source: AJG Simoes, CA Hidalgo. The Economic Complexity Observatory: An Analytical Tool for Understanding
the Dynamics of Economic Development. Workshops at the Twenty-Fifth AAAI Conference on Artificial Intelligence. (2011)
TOTAL: $228B
13
What does Brasil Export? (2014)
MIN
ER
AL
PR
OD
UC
TS
WO
OD
PR
OD
UC
T
ME
TA
LS
ST
ON
E A
ND
GL
AS
S
AN
IMA
L A
ND
VE
GE
TA
BL
EB
I PR
OD
CU
TS
PA
PE
R G
OO
DS
VE
GE
TA
BL
E P
RO
DU
CT
S
AN
IMA
L P
RO
DU
CT
S
FO
OD
ST
UF
FS
WE
AP
ON
S
FO
OT
WE
AR
AN
D H
EA
DW
EA
R
AN
IMA
L H
IDE
S
TE
XT
ILE
S
TR
AN
SP
OR
TA
TIO
N
INS
TR
UM
EN
TS
PL
AS
TIC
AN
D R
UB
BE
R
MIS
CE
LL
AN
EO
US
MA
CH
INE
S
AR
TS
AN
D A
NT
IQU
ES
PR
EC
IOU
S M
ET
AL
S
CH
EM
ICA
L P
RO
DU
CT
S
Source: AJG Simoes, CA Hidalgo. The Economic Complexity Observatory: An Analytical Tool for Understanding
the Dynamics of Economic Development. Workshops at the Twenty-Fifth AAAI Conference on Artificial Intelligence. (2011)
Total: $228B
3.6%
Paper Goods1.1%
Textiles
0.56%
FootwearandHeadwear
0.86%
StoneandGlass
1.6%
PreciousMetals
7.0%
Metals
7.3%
Machines
7.5%
Transportation
0.40%
Instruments
0.27%
Weapons
0.49%
Miscellaneous
7.8%
Animal Products
16%
Vegetable Products
0.75%
AnimalandVegetableBi-Products
12%
Foodstuffs
22%
Mineral Products
5.4%
Chemical Products
2.5%
Plastics andRubbers
1.3%
AnimalHides
1.0%
Wood...
14