An overview on the Latin-American region. Regulatory

issues and opportunities.

Oscar Jaimes. September 2009.

Latin-American countries are very dependent on developments and slowdowns in the world activity

International trade has boomed and poverty has declined Multilateral Banks (European Union, IADB, WB) are the main

source of financing in Latin America and the Caribbean, supporting strategies to increase trade and investment in:

◦ Water sanitation, ◦ Urban transportation, ◦ Food security, ◦ Public health, ◦ Energy projects,

CURRENT SITUATION LATIN-AMERICA

◦ Agricultural technology, ◦ early warning technologies, ◦ Power energy, ◦ Land management programs, ◦ Fishery technologies, ◦ Education, ◦ Solid waste management, ◦ Information technology, ◦ Applied software, ◦ Housing for low income population, ◦ Competitiveness & Development, etc.

CURRENT SITUATION LATIN-AMERICA (cont.)

Asian economies increasing a strong presence in textiles, electronics, machinery and more (10% vs. 40% North America)

The region has a comfortable position in terms of per capita income Importance of Trade has increased significantly for the region Abundant natural resources: oil, natural gas, other minerals, water... Canada’s key investments in LAC (Brazil, Venezuela, Colombia,

Peru, Chile, Trinidad & Tobago, etc:

Natural resources & Telecom development Mining, Hydro-electrical transmission Banking Information technology Agri-business

CURRENT SITUATION LATIN-AMERICA (cont.)

COLOMBIA (the region leading reformer in 2008 - 2009):

◦ Facilitated business start-up.◦ Improved access to credit◦ Expedited trade◦ Strengthened Investor protection◦ Simplified construction permits, property registration & tax

payments

PERU (signed a Free Trade Agreement -FTA- with Canada in 2009):

◦ Reformed business start-up, property registration & contract enforcement

◦ Made easier to pay taxes◦ Sped-up international trade

REGULATORY REFORMS IMPLEMENTED IN THE REGION

Made easier to start a business:◦ Brazil, Argentina, Colombia, Guyana, Honduras, Mexico &

Peru Shortened Trade times:◦ Guyana, Paraguay

Improved property registration, construction permits & access to credit:◦ Guatemala, Panama, Colombia

Eased tax payments:◦ Mexico, Colombia, Peru

Always is recommended a careful previous Due Diligence

REGULATORY REFORMS IMPLEMENTED IN THE REGION

Culture & Language: ◦ Relationship building – Face to face meetings, frequent visits, etc. As key factors

Import Tariffs and Non-Tariff Barriers: ◦ Import duties & complicated import procedures, bureaucracy vs. Barriers coming

down

Bureaucracy/Documentation: ◦ Normal interventionism & bureaucracy in permits, taxes, customs clearance, visas

Intellectual Property: ◦ Companies should be aware of protecting intellectual property

Finding Competent and Trustworthy Agents/Representatives: ◦ Deep research required to find reliable firms capable of representing Canadian

interests

CURRENT CHALLENGES IN THE REGION

Corporate Social Responsibility: ◦ to be sensitive to environmental, human rights, land use, etc.

Lack of Information:◦ Lack of adequate knowledge about complexities of doing businesses in Latam &

the Caribbean

Variances Country to Country:◦ South, Central America and the Caribbean as different blocks with rivalries and

great variances

Competition:◦ Historical links with Europe and increasing presence of China, Japan, India...

CURRENT CHALLENGES IN THE REGION (cont.)

Ocean Technologies, Aquaculture in Chile, Brazil, Argentina Information technology and Environmental services in Venezuela,

Colombia, Brazil Oil & Gas, Agriculture, Health, Telecom in Venezuela, Colombia Nuclear & thermal energy, Agriculture technologies in Argentina,

Chile, Uruguay, Paraguay Cold weather tech (clothes, heating, concrete curing, etc.), remote

sensing and communications in countries of the Southern cone Mining, Hydropower, tourism industry and infrastructure projects in

Central America: Guatemala, Costa Rica, El Salvador, Honduras & Nicaragua

Tourism industry, oil & gas in Bahamas, Cuba, Trinidad & Tobago, Jamaica, Guyana, Haiti, etc.

CURRENT OPPORTUNITIES IN LATAM & THE CARIBBEAN

VIDOSSA Consulting provides consulting services to Canadian companies interested in exporting their products and services to Latin-American & the Caribbean markets:

◦ Market prospects: General overview and prospecting potential partners in the region

◦ Key contact search: Potential distributors◦ Local company information◦ Matchmaking◦ Visit information◦ Translation services◦ Others: Assistance to Fairs, meetings, presentations, etc.

VIDOSSA Consulting Services

Western Canada & Latin America Existing and Potential Commercial Relationships. Western Economic Diversification Canada. August 2008

The Prospects for Latin America: Risks and Opportunities with a Historical Perspective. Emerging Markets Forum. June 2008

Doing Business 2010: Latin America Steps Up Business Regulatory Reform. International Finance Corporation (World Bank). September 2009.

Bibliography