Don't Put All Your Eggs in One Basket
Your relationships with Latin America supply chain partners
need to be placed on a more strategic footing as early as possible
need to be placed on a more strategic footing as early as possible
The United States agenda is likely to prioritize its relationship with Latin America. Today’s political relations between Asia and America and the economic impact of the Covid-19 pandemic; might put the supply chain in jeopardy. It is time to turn to our Latin American neighbors and consolidate commercial and business relationships.
These are serious issues, and they can be mitigated with largely response developments in our south neighbors’ region. The opportunity for a positive paradigm shift in hemispheric relations post-pandemic places U.S.-Latin American ties on a more strategic footing to respond to twenty-first-century challenges.
China, of course, is reaching its agreements with Latin American countries through the Belt and Road Initiative (BRI) and the Comprehensive Regional Economic Partnership (RCEP), and it is investing in the telecommunications and infrastructure sectors. However, most regional countries appear to be dealing with China with “eyes-wide-open,” with a transactional perspective on the value of Chinese investments in their countries and largely avoiding new strategic relationships, which could affect their ties with the United States.
Latin America’s economy is also about more than an aging industrial base and commodity exports. The early months of the Covid-19 pandemic demonstrated the extent to which major corporations and economic sectors inside the United States depend on a sophisticated supply chain with Mexico that supports electronics, defense firms, pharmaceutical companies, and the automobile and aircraft industries. Latin American multinational firms like America Movil, Argentina’s Mercado Libre, Brazil’s Nubank, and Colombia’s Rappi are increasingly competitive in the global digital economy. In 2019, Brazil was third worldwide in the number of its companies that reached unicorn status (valued at $1 billion or more), after the United States and China. Latin America’s banking sector is solid and the fastest growing in the world. The region’s mining, energy, and agricultural companies like Chile’s copper giant Codelco, Colombia’s Ecopetrol, and Brazil’s meat and poultry producer JBS continue to modernize their operations and compete globally.
The preceding may seem like an overly ambitious agenda. A failure to reach, however, risks leaving U.S.-Latin America relations adrift at a historical moment when our influence can no longer be taken for granted; when there are significant economic, social, and political pressures on regional governments; and when China is offering a competitive vision on economic development and global cooperation. It does not seem too much to ask that U.S.-Latin America relations be placed on a more strategic footing as early as possible—just as the administration is doing with parts of the world much further removed from our shores.
James DeMers
Senior Adviser Americas
Worldwide Ecommerce, is our channel
Sourcing from Latin American manufactures
We connect you with reliable sources in Latin America, reducing your dependency on Asian manufacturers or other service providers
Expanding to the North American market
We sell your products in one of the largest markets in the world.
Sourcing from Latin American manufactures
We have an active professional network ready to coach you and work together.
