The Ultimate Guide to Doing Business in Latin America

THE ULTIMATE

AMERICALATINGUIDE TO DOINGBUSINESS IN

*INCLUDES TIPS TO DO BUSINESS IN CUBA

According to the Harvard Business Review, “Latin America is a modern marketer’s dream, and not just because of its size. By 2020, nearly one out of every 10 dollars in the world economy will come from Latin America. The region will soon represent 10% of the global population and 9% of global GDP, with 640 million customers. It also has the fourth-largest mobile market in the world, with social media adoption even surpassing that of the United States”

About Mercatrade.comMercatrade was created with a simple mission in mind: to provi-de effective TRADE MARKETING solutions for businesses that wish to grow their sales in Latin America. Mercatrade fulfills its mission by bringing its users with high quality business informa-tion about Import and export in the region. As trade marketing experts, we also build digital marketing strategies to help you find new B2B clients, execute your communication campaigns and achieve maximum ROI of your brand assets in Latin Ameri-ca.

Chapter 1 Key Economic Data Population Total GDP GDP Growth Rate GDP per capita Inflation Unemployment Rate

Chapter 2 Country Profiles How to do business with Brazil1- Brazil in a Nutshell2- Brazil’s Economy 2.1- GDP Figures (2015), The World Factbook 2.2- Economic Outlook 2.3- Trade and Economic Challenges3- Trading With Brazil 3.1- Trading Partners 3.2- Brazil's Imports and Exports 3.3 - Trading Infrastructure 3.4 - Time and Cost to Import into Brazil 3.5 - Tax Free Zones 3.6 - Brazil Free Trade Agreements4- Brazil’s Business Opportunities 4.1 - Investment Grade 4.2 - Significant Projects 4.3 – Infrastructure 4.4 - Largest Employers 4.5 - General Business Taxes5- Brazil’s Key Industries 5.1 - Largest Industries 5.2 – Brazil’s Technology and Connectivity 5.3 - E-Commerce and Startups6- Visiting Brazil 6.1 - Business and Cultural Etiquette 6.2 - Primary Tourist Attractions 6.3 – Safety 6.4 - Public National Holidays 6.5 - Fun and Interesting Facts 6.6 - The Foodie Scene 6.7 – The Media 6.8 - Emergency Numbers 6.9 - Primary Hospitals and Medical Facilities In Case of Emergency

1234567

8

91011

12

1315171819

20

2122

23

24

25

272829

3031

32

How To Do Business With Mexico1- Mexico in a Nutshell2- Mexico’s Economy 2.1- GDP Figures (2015), The World Factbook 2.2- Economic Outlook 2.3- Trade and Economic Challenges3- Trading With Mexico 3.1- Trading Partners 3.2- Mexico‘s Imports and Exports 3.3 - Trading Infrastructure 3.4 - Time and Cost to Import into Mexico 3.5 - Tax Free Zones 3.6 - Mexico Free Trade Agreements4- Mexico’s Business Opportunities 4.1 - Investment Grade 4.2 - Significant Projects 4.3 – Infrastructure 4.4 - Largest Employers 4.5 - General Business Taxes5- Mexico’s Key Industries 5.1 - Largest Industries 5.2 – Mexico’s Technology and Connectivity 5.3 - E-Commerce and Startups6- Visiting Mexico 6.1 - Business and Cultural Etiquette 6.2 - Primary Tourist Attractions 6.3 – Safety 6.4 - Public National Holidays 6.5 - Fun and Interesting Facts 6.6 - The Foodie Scene 6.7 – The Media 6.8 - Emergency Numbers 6.9 - Primary Hospitals and Medical Facilities In Case of Emergency

How To Do Business With Colombia1- Colombia in a Nutshell2- Colombia’s Economy 2.1- GDP Figures (2015), The World Factbook 2.2- Economic Outlook 2.3- Trade and Economic Challenges

333435

26

373941424346

474849

50

51

52

5455

5657585960

636465

66

3-Trading With Colombia 3.1- Trading Partners 3.2- Colombia ‘s Imports and Exports 3.3 - Trading Infrastructure 3.4 - Time and Cost to Import into Colombia 3.5 - Tax Free Zones 3.6 - Colombia Free Trade Agreements4- Colombia’s Business Opportunities 4.1 - Investment Grade 4.2 - Significant Projects 4.3 – Infrastructure 4.4 - Largest Employers 4.5 - General Business Taxes5- Colombia’s Key Industries 5.1 - Largest Industries 5.2 – Colombia’s Technology and Connectivity 5.3 - E-Commerce and Startups6- Visiting Colombia 6.1 - Business and Cultural Etiquette 6.2 - Primary Tourist Attractions 6.3 – Safety 6.4 - Public National Holidays 6.5 - Fun and Interesting Facts 6.6 - The Foodie Scene 6.7 – The Media 6.8 - Emergency Numbers 6.9 - Primary Hospitals and Medical Facilities In Case of Emergency

How To Do Business With Argentina1- Argentina in a Nutshell2- Argentina’s Economy 2.1- GDP Figures (2015), The World Factbook 2.2- Economic Outlook 2.3- Trade and Economic Challenges3- Trading With Argentina 3.1- Trading Partners 3.2- Argentina ‘s Imports and Exports 3.3 - Trading Infrastructure 3.4 - Time and Cost to Import into Argentina 3.5 - Tax Free Zones 3.6 - Argentina Free Trade Agreements

676972737576

7778

7981

82

84858687

88

89

909192

93

9496

99100

4- Argentina’s Business Opportunities 4.1 - Investment Grade 4.2 - Significant Projects 4.3 – Infrastructure 4.4 - Largest Employers 4.5 - General Business Taxes5- Argentina’s Key Industries 5.1 - Largest Industries 5.2 – Argentina’s Technology and Connectivity 5.3 - E-Commerce and Startups6- Visiting Argentina 6.1 - Business and Cultural Etiquette 6.2 - Primary Tourist Attractions 6.3 – Safety 6.4 - Public National Holidays 6.5 - Fun and Interesting Facts 6.6 - The Foodie Scene 6.7 – The Media 6.8 - Emergency Numbers 6.9 - Primary Hospitals and Medical Facilities In Case of Emergency

How To Do Business With Peru1- Peru in a Nutshell2- Peru’s Economy 2.1- GDP Figures (2015), The World Factbook 2.2- Economic Outlook 2.3- Trade and Economic Challenges3- Trading With Peru 3.1- Trading Partners 3.2- Peru ‘s Imports and Exports 3.3 - Trading Infrastructure 3.4 - Time and Cost to Import into Peru 3.5 - Tax Free Zones 3.6 - Peru Free Trade Agreements4- Peru’s Business Opportunities 4.1 - Investment Grade 4.2 - Significant Projects 4.3 – Infrastructure 4.4 - Largest Employers 4.5 - General Business Taxes5- Peru’s Key Industries 5.1 - Largest Industries 5.2 – Peru’s Technology and Connectivity 5.3 - E-Commerce and Startups

102

103104

105

106

107

110112113114115116117

118119

120

121

122124126127128130

131132133

134

135

6- Visiting Peru 6.1 - Business and Cultural Etiquette 6.2 - Primary Tourist Attractions 6.3 – Safety 6.4 - Public National Holidays 6.5 - Fun and Interesting Facts 6.6 - The Foodie Scene 6.7 – The Media 6.8 - Emergency Numbers 6.9 - Primary Hospitals and Medical Facilities In Case of Emergency

How To Do Business With Venezuela1- Venezuela in a Nutshell2- Venezuela’s Economy 2.1- GDP Figures (2015), The World Factbook 2.2- Economic Outlook 2.3- Trade and Economic Challenges3- Trading With Venezuela 3.1- Trading Partners 3.2- Venezuela ‘s Imports and Exports 3.3 - Trading Infrastructure 3.4 - Time and Cost to Import into Venezuela 3.5 - Tax Free Zones 3.6 - Venezuela Free Trade Agreements4- Venezuela’s Business Opportunities 4.1 - Investment Grade 4.2 - Significant Projects 4.3 – Infrastructure 4.4 - Largest Employers 4.5 - General Business Taxes5- Venezuela’s Key Industries 5.1 - Largest Industries 5.2 – Venezuela’s Technology and Connectivity 5.3 - E-Commerce and Startups6- Visiting Venezuela 6.1 - Business and Cultural Etiquette 6.2 - Primary Tourist Attractions 6.3 – Safety 6.4 - Public National Holidays 6.5 - Fun and Interesting Facts 6.6 - The Foodie Scene 6.7 – The Media 6.8 - Emergency Numbers 6.9 - Primary Hospitals and Medical Facilities In Case of Emergency

136

138140141

142143

144

145146147

148

149151154155156158

159160

161

162

163

165166167

168169

170

How To Do Business With Chile1- Chile in a Nutshell2- Chile’s Economy 2.1- GDP Figures (2015), The World Factbook 2.2- Economic Outlook 2.3- Trade and Economic Challenges3- Trading With Chile 3.1- Trading Partners 3.2- Chile ‘s Imports and Exports 3.3 - Trading Infrastructure 3.4 - Time and Cost to Import into Chile 3.5 - Tax Free Zones 3.6 - Chile Free Trade Agreements4- Chile’s Business Opportunities 4.1 - Investment Grade 4.2 - Significant Projects 4.3 – Infrastructure 4.4 - Largest Employers 4.5 - General Business Taxes5- Chile’s Key Industries 5.1 - Largest Industries 5.2 – Chile’s Technology and Connectivity 5.3 - E-Commerce and Startups6- Visiting Chile 6.1 - Business and Cultural Etiquette 6.2 - Primary Tourist Attractions 6.3 – Safety 6.4 - Public National Holidays 6.5 - Fun and Interesting Facts 6.6 - The Foodie Scene 6.7 – The Media 6.8 - Emergency Numbers 6.9 - Primary Hospitals and Medical Facilities In Case of Emergency

How To Do Business With Cuba1- Cuba in a Nutshell2- Cuba’s Economy 2.1- GDP Figures (2015), The World Factbook 2.2- Economic Outlook 2.3- Trade and Economic Challenges

171172173

175

176178180181

185

186187188

189

190

190

192193194

195196197

198199

200

201

3- Trading With Cuba 3.1- Trading Partners 3.2- Cuba ‘s Imports and Exports 3.3 - Trading Infrastructure 3.4 - Time and Cost to Import into Cuba 3.5 - Tax Free Zones 3.6 - Cuba Free Trade Agreements4- Cuba’s Business Opportunities 4.1 - Investment Grade 4.2 - Significant Projects 4.3 – Infrastructure 4.4 - Largest Employers 4.5 - General Business Taxes5- Cuba’s Key Industries 5.1 - Largest Industries 5.2 – Cuba’s Technology and Connectivity 5.3 - E-Commerce and Startups6- Visiting Cuba 6.1 - Business and Cultural Etiquette 6.2 - Primary Tourist Attractions 6.3 – Safety 6.4 - Public National Holidays 6.5 - Fun and Interesting Facts 6.6 - The Foodie Scene 6.7 – The Media 6.8 - Emergency Numbers 6.9 - Primary Hospitals and Medical Facilities In Case of Emergency

How To Do Business With Panama1- Panama in a Nutshell2- Panama’s Economy 2.1- GDP Figures (2015), The World Factbook 2.2- Economic Outlook 2.3- Trade and Economic Challenges3- Trading With Panama 3.1- Trading Partners 3.2- Panama ‘s Imports and Exports 3.3 - Trading Infrastructure 3.4 - Time and Cost to Import into Panama 3.5 - Tax Free Zones 3.6 - Panama Free Trade Agreements

202204206

207207

208209

210

211

212214215

216217

218219

220

221

222224226228229

4- Panama’s Business Opportunities 4.1 - Investment Grade 4.2 - Significant Projects 4.3 – Infrastructure 4.4 - Largest Employers 4.5 - General Business Taxes5- Panama’s Key Industries 5.1 - Largest Industries 5.2 – Panama’s Technology and Connectivity 5.3 - E-Commerce and Startups6- Visiting Panama 6.1 - Business and Cultural Etiquette 6.2 - Primary Tourist Attractions 6.3 – Safety 6.4 - Public National Holidays 6.5 - Fun and Interesting Facts 6.6 - The Foodie Scene 6.7 – The Media 6.8 - Emergency Numbers 6.9 - Primary Hospitals and Medical Facilities In Case of Emergency

Sources

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231233

234

236

237

238240

241242

243

244

Chapter 1 Key Economic Data

1

204,259,812

121,736,809

46,736,72843,431,886

30,444,999 29,275,460

17,508,26011,031,433

3,657,024

POPULATION

BRAZIL MEXICO COLOMBIA ARGENTINA PERU VENEZUELA CHILE CUBA PANAMA

0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

The World Factbook (2015 est.)

2

$ 3.192 trillion

$ 2.227trillion

$ 972 billion

$ 667.4 billion $ 515.7

billion $ 422.4billion

$ 398.1billion

$ 128.5 billion

$ 87.2billion

TOTAL GDP

BRAZIL MEXICO COLOMBIAARGENTINA PERUVENEZUELA CHILE CUBA PANAMA

Purchasing power parity (2015 est.)

3

8%

6%

GDP GROWTH RATE

4%

2%

-2%

0%

-4%

-6%

-8%

PANAMA PERU COLOMBIA MEXICO CHILE CUBA ARGENTINA

BRAZIL VENEZUELA

-3.8%

1.3%

3.3% 3.1%2.5%

1.2%

-5,7%

5.8%

2.1%


4

GDP PER CAPITA

CHILE ARGENTINA PANAMA MEXICO VENEZUELA BRAZIL PERU COLOMBIA CUBA

$15,600

$22,600

$12,200

$10,200

$16,700

$23,500

$21,800

$17,500

$13,800

$25,000.00

$20,000.00

$15,000.00

$10,000.00

$5,000.00

$0,00


5

INFLATION RATE140.0%

120.0%

100.0%

80.0%

40.0%

60.0%

20.0%

0.0%VENEZUELA ARGENTINA BRAZIL COLOMBIA CUBA CHILE PERU MEXICO PANAMA

121.7%

9% 4.4%0.1%

3.5%

27.6%

5% 4.3% 2.7%


6

UNEMPLOYMENT RATE

COLOMBIA VENEZUELA ARGENTINA BRAZIL CHILE PERU MEXICO PANAMA CUBA

10,0%

9,0%

8,0%

7,0%

6,0%

5,0%

4,0%

3,0%

2,0%

1,0%

0,0%

8.9%

7.6%

6.4%

4.5%

3%

8.1%

6.4%6.1%

4.5%


7

Chapter 2 Country Profiles

8

How To Do Business With Brazil

2

1- Brazil In A Nutshell

Capital City: Brasilia

Population: 204,259,812 (July 2015 estimate, The World Factbook)

Language: Portuguese

GDP (purchasing power parity): $3.166 trillion (2015 estimate, The World Factbook)

Unemployment Rate: 6.4% (2015 estimate, The World Factbook)

Inflation: 9% (2015 estimate, The World Factbook)

Currency: Brazilian Real

Time Zone: 6 times zones GMT-5, GMT-4, GMT-3, GMT-2. It is impor-tant to note that not all states observe daylight savings time and both Rio de Janeiro and Sao Paulo are GMT-3 during South Ameri-can winter time and GMT-2 during summer time.

Telephone Code: +55

Internet Domain: .br

Electricity Voltage: Voltage varies from 110 to 220 depending on the municipality and state.

10

2.1 - GDP Figures (2015), The World Factbook

GDP: USD $3.192 trillion

GDP growth rate: -3.8% (2015 estimate, The World Factbook)

GDP per capita (PPP): $15,600 (2015 estimate, The World Factbook)

GDP Composition by sector: Agriculture (5.9%), Industry (22.2%), Services (71.9%)

2.2 - Economic Outlook

Brazil is in a state of economic crisis causing much concern over the long-term growth potential of the country. In addition to such economic woes, the political state of the nation is also in disarray with the impeachment proceedings of President Dilma Rousse-ff and a staggering list of resignations and prosecutions of many members of the inte-rim President Michel Temer’s cabinet and ministry. Each month announcements are being made of corruption charges and national fraud by both major businesses and politicians. Safety is also a concern of investors and consumers alike, and many citizens fear that after the Olympics, crime may skyrocket as a lack of money will be available to fund police and special forces that have kept crime down in recent years. All of these factors are contributing to a poor economic outlook for Brazil in the next few years.

2- Brazil’s Economy

11

2.3 - Trade and Economic ChallengesA few of the challenges to the growth in Brazil is the fiscal policies that are not conduci-ve to pursuing more exports and more investment. At this time, fiscal policies have been established to promote consumerism to foster growth instead. The infrastructure conti-nues to be problematic. As furiously as Brazil is working to improve the infrastructure, the vast size of the country and environmental implications make development a massi-ve obstacle.

Another challenge that remains constant is a lack of confidence in consumers and investors. The government administration is taking steps to create more confidence. A new Finance Minister has been appointed to attack the spending problem that exists within the current government infrastructure. This too faces a grand challenge given that much of the spending within the budget is directly connected to mandated expenditures within the constitution. Experts agree that in order to bolster confidence and to secure growth, spending must be significantly reduced; however, it seems new laws affecting their constitution are required to accomplish such a task making the situation highly problematic.

3- Trading With Brazil3.1 - Trading PartnersBrazil has strong trading ties with China, the US, and Argentina in both imports and exports. At this time, limited trade agreements and an economy heavily based on servi-ces have made the distribution between trading partners less drastic than in other Latin American countries. As Brazil continues to consider new trade agreements, partnership distribution is likely to change.

Largest Export Partners (2014): China 19.1%US 12.6%Argentina 6.8%Netherlands 5.3%

Largest Import Partners (2014)China 18.1%US 15.3%Germany 6%Argentina 6%Nigeria 4.2%

12

What does Brasil Import? (2014)3.2- Brazil's Imports and Exports

0.92%

PaperGoods

3.2%

Textiles

0.38%

FootwearandHeadwear

0.80%

Stone and...

0.26%

Precious...

6.0%

Metals

26%

Machines

11%

Transportation

3.2%

Instruments

1.0%

Miscellaneous

1.1%

AnimalProducts

2.1%

Vegetable Products

0.49%

Animal and Vegetable Bi-Products

1.4%

Foodstuffs

20%

Mineral Products16%

Chemical Products

5.6%

Plastics andRubbers

0.29%

AnimalHides

0.079%

Wood...

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PR

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Source: AJG Simoes, CA Hidalgo. The Economic Complexity Observatory: An Analytical Tool for Understanding

the Dynamics of Economic Development. Workshops at the Twenty-Fifth AAAI Conference on Artificial Intelligence. (2011)

TOTAL: $228B

13

What does Brasil Export? (2014)

MIN

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Source: AJG Simoes, CA Hidalgo. The Economic Complexity Observatory: An Analytical Tool for Understanding

the Dynamics of Economic Development. Workshops at the Twenty-Fifth AAAI Conference on Artificial Intelligence. (2011)

Total: $228B

3.6%

Paper Goods1.1%

Textiles

0.56%

FootwearandHeadwear

0.86%

StoneandGlass

1.6%

PreciousMetals

7.0%

Metals

7.3%

Machines

7.5%

Transportation

0.40%

Instruments

0.27%

Weapons

0.49%

Miscellaneous

7.8%

Animal Products

16%

Vegetable Products

0.75%

AnimalandVegetableBi-Products

12%

Foodstuffs

22%

Mineral Products

5.4%

Chemical Products

2.5%

Plastics andRubbers

1.3%

AnimalHides

1.0%

Wood...

14