Francisco A. Laguna & Wojciech Kornacki
Big changes are coming to Latin America. Huge international conglomerates are heavily investing into resource exploration and agriculture development there. While most of the natural resources are exported north to the United States, many European and Asian companies are about to change this trend.
Foreign Direct Investment in Latin America
According to the Economic Commission for Latin America and the Caribbean, foreign direct investment (“FDI”) in Latin America hit a new high in 2012 – 173.61 billion. Many European and Chinese companies are directly responsible for this dramatic increase. European countries account for approximately 43 percent of the entire FDI, and the European Commission seeks to increase it even more. The European Commission indicates that Europe seeks to engage the entire region as a whole and deepen its economic and trade connections. Indian companies are similarly showing increased interest in the region. For an international business person, this means more potential business opportunities, more legislative changes, and more opportunities for profit.Latin America possesses base and precious metals, industrial and energy minerals, low labor costs, fairly well educated labor force and plenty of unexplored areas. Currently, many European and Chinese companies are developing mines and exploring in Mexico, Peru, Colombia and other countries. Mining, exploration, energy and agriculture have been the sectors driving the Latin American economy in the last decade. Despite recent turbulent years in the world economy, the GDP in Latin America has grown by 4.5 percent on annual basis.
According to China Perspectives, countries in Latin America are very important to China because 45 percent of the world’s copper reserves, 25 percent of its silver reserves and 33 percent of its pewter reserves are there, and this is exactly what China needs to keep its economy growing. TransLegal recently blogged about China’s investment strategy in Latin America.
Your Business Opportunities
If you are a business person seeking to seize the opportunities in Latin America, you will need sound guidance on domestic regulatory compliance, international law, and also political and business developments. Contact seasoned consultants at TransLegal to obtain advice and counsel on:
- regulatory compliance – get pin-pointed advice on domestic legal requirements;
- international business concerns – shield yourself from international litigation over violations of international treaties or allegations human rights violations;
- generation of business opportunities: have your questions answered;
- corporate responsibility: we will assist you in developing comprehensive corporate policies that will guide your corporation to success;
- political and economic market analysis – we constantly monitor international developments for impact on your business so you do not have to.
Contact TransLegal for a free consultation.