Department of Foreign Affairs and Trade
Regions’ GDPs Similar, LA Per Capita Income Higher
0
200
400
600
800
1 000
1 200
US
$ b
illio
ns
0
2 000
4 000
6 000
8 000
10 000
12 000
US
$
GDP (LHS) GDP per capita (RHS)
Average Income = US$2 986 Average Income = US$5 393
Australian Trade and FDI with East Asia Dominates Latin America, 2000
0
20000
40000
60000
80000
100000
120000
East Asia Latin America
Trade FDI
Can Latin American Trade Ever Challenge East Asian ?
DistanceDistance
Trade AgreementsTrade Agreements
Commodity ExportersCommodity Exporters
-5
0
5
10
15
20
China Philippines Thailand Rep. Korea Malaysia Indonesia Argentina Mexico Chile Brazil
Per c
ent
Exports to Latin America Growing Faster than to East Asia, 1990-2000
Brazil
• Inflation beaten• Deficit low • FDI open, strong inflows• Trade opening• Privatisation succeeding• Flexible exchange rate• Growth increasing• Contagion, power threats
• NAFTA driving growth and reform• Fundamentals good • FDI open • Growth high• Infrastructure, banks weak• US downturn a threat
Mexico
Chile
• FDI and trade very open• Sound macro policy• Flexible labour markets• High transparency• Strong banking system• Privatisation success• Highest growth in LA
Argentina
• Inflation beaten• FDI open• Trade opening• Rigid exchange rate• Fiscal deficit problem• 3 year recession • Good long term prospects
Business Environment ?Business Environment ?
improving, Chile leads
labour markets still rigid
banking systems weak
transparency still poor
Business Opportunities ?Business Opportunities ?
Commodities
Niche manufactures
Services, tourism,
education
Investment, mining, agribusiness
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