#IFB2014 #LatAm LatAm Overview: Opportunities #IFB2014 #LatAm The UK traditionally has strong links with Latin America (in 1808, 40% of UK exports went to LatAm!), but these links weakened in the 20 th Century Other European countries trade much more with LatAm (Germany trades 4 times more than the UK with LatAm) This indicates huge potential to grow trade with LatAm. Both the private & public sector have now realised this and are pushing for increase in trade Several of the most-watched emerging markets are in LatAm (Brazil from BRICS, Mexico from MINT, Colombia from CIVETS) Regional GDP growth of 3% in 2013 (source: ELAC)
#IFB2014 #LatAm The Region (Source World Bank/ECLAC) 19 19 countries 1 in North America 2 in the Caribbean 6 in Central America 10 in South America 21 21 million square kms or 14.1% of the earth's surface 5.6 GDP US$ 5.6 trillion in 2012 589 Population of 589 million 9,070 Per capita Gross National Income US$ 9,070
#IFB2014 #LatAm The Power of the Pacific Alliance What is it and why?
#IFB2014 #LatAm An ocean of opportunities… 200 millionCombined market of over 200 million consumers halfOver half of LatAm Global Trade Depth & Breadth of FTA’s provide platform for growth with USA & Asia Main sectorsMain sectors Natural resources Financial & Bus. Services Software & IT services BPO Food & Drink Consumer goods
#IFB2014 #LatAm Ease of doing business & market access
#IFB2014 #LatAm 10 OFFICIAL FCO LatAm Economic Indicators Index
#IFB2014 #LatAm Regional Opportunities Case studies of Success
#IFB2014 #LatAm Colombia: Regional economic sectors Caribbean: tourism, logistics, petrochemicals, construction materials, import/export platform to the Caribbean/Atlantic. Central/Andean: services, high value-added manufacturing, hub to cover domestic market, specialized agroindustry. Pacific: manufacturing, agroindustry, logistics, biotechnology, export platform to the Pacific Rim. Orinoquia: agriculture, forestry, biofuels, hydrocarbons. Amazon: conservation, ecotourism (Leticia). Caribbean Region Central / Andean Region Orinoquía Region Amazon Region Pacific Region Infrastructure & Transport Oil & Gas Retail Financial & Professional Services UK Opportunities
#IFB2014 #LatAm Colombia Case Study Sector:Supermarket Retail Company:Waitrose is a chain of British supermarkets, forming the food retail division of Britain's largest employee-owned retailer, the John Lewis Partnership. Support provided: Market and sector analysis and list of the potential distribution partners Market visit support Help to set up client meetings Follow-up on negotiations and in-market support Outcome:Advanced distribution partner negotiations close to fruition. Next stage is to confirm SKU’s. “UKCT gave first class support to me before, during and after the trip. They had an excellent insight into the markets and connected me with the right people in the right places, which was invaluable.“ "quality you'd expect at prices you wouldn't"
#IFB2014 #LatAm Mexico: Regional Economic Sectors Aerospace & Automotive Oil & Gas Retail Healthcare & Life Sciences Healthcare and Life Sciences The Federal Commission for Protection Against Sanitary Risk has been working hard to reduce the barriers to entry for new medicines entering the country. Demand for services & products is high Aerospace & Automotive With an average 20% annual growth rate since 2004, Mexico has become a global leader in aerospace sector, boasting 270 companies and supporting entities Oil and Gas Mexican production at almost 2.5 Million barrels per day Last year’s Energy Reform and secondary allow for private investment Retail Growing middle class drive demand for consumer electronics, clothing and household goods
#IFB2014 #LatAm North (Atacama Desert): mining, mainly copper of which Chile is the world’s largest producer. Also Lithium and Molybdenum. Related Energy and Water. The climate is similar to Northern Africa. Central Valley, with capital Santiago and Valparaíso (port and seat of Congress): Renewable Energy, Infrastructure, mining, manufacturing, agriculture, wine, agribusiness,, retail and financial services. The climate is similar to Madrid and Rome South: Renewable Energy, forestry, salmon farming, fishing, agriculture and, in Concepción, petrochemicals and steel production. This region is rainy and similar to the UK. Fjords and Tierra del Fuego: tourism, agriculture, aquaculture, fishing, gas and oil production, coal mining, wood pulp & board. This sector is snowy and windy, very similar to Scandinavia. Chile: Regional Economic Sectors 16% of GDP 75% of GDP 9% of GDP Mining Fishing Agriculture Manufacturing Services Agriculture Cattle Breeding Forestry Fishing Agriculture Mining Santiago 49% of GDP Antofagasta 11% of GDP Concepción 7% of GDP
#IFB2014 #LatAm Chile Case Study Sector:Health Company:BioEden, the World’s First banking service for dental stem cells. Now they serves Members in over 60 countries, with storage lab facilities in the UK, the USA and Asia. Support provided: Product launching at the HM Ambassador Residence Complete market assessment Tailored advice on Chilean consumer consumption behavior and trends Comprehensive list of contact Developing meeting Outcome:Develop BioEden business model based on a franchise. Encourage the use of Tooth Stem Cells among people through dentists to promote the solution. "…building an organ that is a match for you, is available for you, is something that wasn’t even fathomable ten or 15 years ago…"
#IFB2014 #LatAm Growing LatAm Presence of UK Brands
#IFB2014 #LatAm Latin America has a wide mix of business opportunities for UK plc: Vast divergence in market size and business environments across countries and country groups (e.g. Mercosur, Pacific Alliance, the Caribbean and Central America). We must look at different ways to maximise UK opportunities in different markets and regions, even within markets. Brazil remains the number one prospect in terms of market size and growth potential, but its business environment remains weak: Its size means continued opportunities for exports and investment, but low competitiveness, high protectionism and corruption could hinder UK success. BUT Pacific Alliance countries provide the best balance of opportunities in terms of both growth outlook and ease of doing business. Encouraging businesses in key sectors could bring quicker wins in these economies than in other markets. Recommendations