January 18th, 2013
Exportation, South America, Trade
In May 2012, I had the opportunity to go on an exploratory mission to Latin America, including Brazil (Sao Paulo), Chile (Santiago), Peru (Lima) and Colombia (Medellin), as part of my EMBA program at Concordia University. During this mission, I carried out a mandate for LAVAL TECHNOPOLE International Business Centre, in which I validated the market potential for Laval companies and identified intermediaries for our export activities. Here are my recommendations and my conclusion.
It is important to note that each of these countries presents opportunities for Laval companies in accordance with their stage of maturity, their production capacity, the level of risk that they are prepared to accept and the investments that they are prepared to make in order to develop these markets. It is worth noting that EDC considers these four markets to be attractive markets for Canadian exporters.
We have heard a great deal about the opportunities in Brazil and Chile in recent years. Brazil is one of the world?s largest economies, but the barriers to entry are daunting (high taxation levels, very protectionist economy, etc.). On the other hand, the Chilean economy represents one of the world?s most open economies (56 free-trade agreements), and therefore, international competition is fierce. In addition, Chile?s land mass and population are small. In light of its geographic situation, Chile is not necessarily the best starting point for exporting to South America.
During the exploratory mission, a number of stakeholders confirmed to me that Peru and Colombia offer greater opportunities for Qu?bec SMEs, and especially for those that have not already established a presence in South America. The Peruvian and Colombian markets are very open to the world, and the needs are numerous. In addition, both countries have signed free trade agreements with Canada, which facilitates business activities. According to the World Bank, Peru and Colombia rank second and third among South America countries in terms of the ease of conducting business. As a point of interest, two Laval companies carried our acquisitions there during the past year: Cima+ and Genivar.
Based on this information, and given the fact that there is already a high level of international competition in Brazil and Chile, Peru and Colombia represent more attractive options for our companies. I was able to meet with a number of key economic stakeholders who will certainly be able to facilitate the success of our companies in these markets. Please do not hesitate to contact me if you are interested in these four markets. I would be more than happy to share my experience with you and to introduce you to my contacts.
Caroline Bouchard
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