Exporters across the world have faced unprecedented challenges over the past two years because of the pandemic. Trade activity is disrupted in a variety of ways, and the export situation in Latin America also felt the effects.
The exporting landscape throughout Latin America will be discussed in this article. How the export market of Latin America is affected through the pandemic as well as forecasts and analyses on the outlook of the market for the coming years will be discussed.
Exports of Latin America After the Pandemic:
The Latin American export market experienced a rebound in 2021, recovering from a 9% decline in 2020. This resurgence was driven primarily by rising prices of exported goods rather than an increase in export volume.
The trend of export market growth is expected to continue as prices keep climbing, a prediction supported by a report from the Inter-American Development Bank (IDB). Leading exporters in the region include Brazil, Chile, Argentina, Peru, Colombia, Paraguay, Ecuador, and Bolivia, with South America accounting for the majority of Latin America’s exports. According to the IDB analysis, South American countries will remain the primary drivers of export growth, while Central American nations are seeing slower progress.
Exporting Opportunities for Latin America:
The export market of Latin American is expected to bounce back and possibly be propelled forward because there are several influences in play that are opening doors for exporting from Latin America.
Connections between Latin American exporters and global buyers can be build with many social and economic policies, including free trade agreements (FTAs). Internal exporting is continuously promoted in the region by the Latin American Integration Association (ALADI).
The Latin American Integration Association (ALADI) is a long-standing organization which facilitates peace and economic cooperation between Latin American countries, and its headquarters is situated in Uruguay. Healthy economic activity is still promoted by it although less than half of the Latin American nations are part of this alliance.
North American Free Trade Agreement (NAFTA) is a policy that facilitates external trade from Latin America and ensures free trade between Mexico, Canada, and the United States. Although, free trade is not ensured for all of Latin America, but a gateway to one of the largest economies in the world is provided by it.
Essential Exports of Latin America:
There is quite a variety in the exports that are sold from Latin America as it includes over 30 countries and territories throughout Central America and South America. A huge collection of ecosystems, ranging from tropical rainforests to snowy mountains is included in Latin America. Therefore, such a wide variety of natural resources is offered by the region that can be harvested and exported. Some essential exports from Latin America that B2B businesses should consider offering include:
Plant Products
Latin America is a major exporter of plant-based products like fruits, soybeans, coffee, beans, corn, wheat, sugar, and fresh flowers.
Animal Products
Beef, dairy, chicken, and pork are significant animal product exports from the region.
Vehicles
Latin American countries, particularly Mexico and Argentina, export various vehicles, including cars and delivery trucks, along with car parts.
Metals
Key metal exports from Latin America include gold, zinc ore, copper ore, and iron ore, with Peru being a prominent contributor.
Mineral Fuels
Petroleum products, both crude and refined, form a vital part of the region's exports due to its abundance of mineral fuels.
Seafood
Thanks to its vast coastal regions, Latin America exports a variety of seafood, including warm-water and cold-water fish and crustaceans. Additionally, processed fish, fishmeal, and fish oils are notable exports.
