Opportunities for UK companies in Latin America and the Caribbean

Alexander Dennis’ Enviro400 hybrid bus, Mexico City Opportunities for UK companies in Latin America and the Caribbean 1

Rio de Janerio, Brazil

Contents

About the Department for International Trade (DIT)...... 2-3

Opportunities for UK companies in Latin American and the Caribbean...... 4-5

Sectors Markets

Advanced Engineering and Automotive ...... 6-7 A focus on Latin American and the Caribbean markets...... 24-25 Education ...... 8-9 Argentina ...... 26 Financial Services ...... 10-11 Barbados & the Eastern Caribbean ...... 27 Food & Drink ...... 12-13 Brazil ...... 28 Infrastructure ...... 14-15 Chile ...... 29 Life Sciences ...... 16-17 Colombia ...... 30 Marine ...... 18 Costa Rica ...... 31 Mining ...... 19 Cuba ...... 32 Oil & Gas ...... 20-22 Dominican Republic ...... 33 Renewable Energy ...... 23 Ecuador ...... 34

Guyana ...... 35

Jamaica ...... 36

Mexico ...... 37

Panama ...... 38

Peru ...... 39

Trinidad & Tobago ...... 40

Uruguay ...... 41

Venezuela ...... 42 2 Opportunities for UK companies in Latin America and the Caribbean Opportunities for UK companies in Latin America and the Caribbean 3

Mexico City, Mexico UK Export Finance

UK Export Finance is part of DIT and supports companies with financing their overseas sales. They also help UK exporters win contracts: the attractive financing terms they can give to buyers of UK goods and services help exporters make their offer more competitive.

They help exporters fulfil contracts by They also help exporters get paid by offering enabling companies to access the working insurance against the risk of not being paid, capital they need, giving them the ability or of not being able to recover the costs of to take on more contracts and increase fulfilling an export contract. turnover.

DIT Latin America The Department and Caribbean Enquiry Hub for International Trade

DIT has experts based in overseas We have a dedicated regional DIT Enquiry markets, in the UK regions and in specialist Hub based in Santiago, Chile, that can provide This brochure is designed to draw together key points about the most sector teams in the UK. Together, we further basic information on these markets important sectors and markets with opportunities for exporting UK actively identify opportunities in overseas and put you in touch with the appropriate markets, highlighting these on teams or external service providers for your companies to consider in Latin America and the Caribbean. www.great.gov.uk, organise events in company. the UK to highlight developments and Opportunities are particularly relevant to best route to market and on regulations they communicate them to companies in the larger exporting companies with experience need to comply with. We connect companies relevant sector. of trading in other overseas markets, with up with key contacts in their sector and help capacity to visit the region and invest time in them identify and warm up potential business In Latin America, we have identified a For more info or get in touch, establishing strong business relationships. partners. Our teams can: number of sectors that offer particularly please email: strong opportunities for UK companies. From our offices overseas and in the UK, the • H elp to find the best markets for a These opportunities are listed in this Ben Thompson Department for International Trade (DIT) company’s product or service. brochure and we encourage all UK Latin America and Caribbean helps UK- based businesses export and grow • P rovide tailored support and guidance on companies with relevant products and Enquiry Hub Manager in overseas markets and also helps overseas how to trade in a target market. services to get in touch with our teams to e. [email protected] companies locate and grow in the UK. We find out more. provide our services in over 100 markets • R esearch, identify and warm up potential worldwide. business partners. If you are unsure which country or sector DIT’s international trade experts help UK • S upport during overseas visits. team to approach, or if your product/ companies assess market potential for their service does not fit within DIT priority • S upport during overseas exhibitions and product or service; we can help research the sectors in those markets, there are still events market and we can advise companies on the opportunities out there for you. 4 Opportunities for UK companies in Latin America and the Caribbean Opportunities for UK companies in Latin America and the Caribbean 5

Santiago, DIT in Latin America Chile & the Caribbean

The Department for International Opportunities for UK Trade has a network of 130 staff based in 17 Latin American and Caribbean markets, whose role companies in Latin is to support UK companies that want to grow their business in the region. America and the

To find out more about how DIT may be able to help your business grow, Caribbean please contact our teams in the UK and overseas.

The Department for International Trade is responsible for promoting UK trade across the world and attracting foreign investment to the UK.

We are a specialised government body • Support during overseas visits, with responsibility for negotiating and the identification of potential international trade policy, supporting business partners. business, as well as delivering an outward-looking trade diplomacy • Assistance and support during strategy. overseas exhibitions and events.

DIT has trade specialists who can help Latin America & the Caribbean is the UK companies commission services world’s third largest economy, after from local experts overseas including: the US and China. It has a population of 650 million - almost double that of • Country and sector advice, with the US and 10 times the size of the UK. extensive local market knowledge and research. ‘‘DIT helped me get commercial access and knowledge of Brazil. They supported me to achieve my goal to export my security technology by being in the right place at the right time” - Staff Security

For more information on how to grow your business overseas, please visit: great.gov.uk 6 Opportunities for UK companies in Latin America and the Caribbean Opportunities for UK companies in Latin America and the Caribbean 7

An engineer operates machinery

Mexico produces 3.4 million light vehicles and 190,000 heavy vehicles per year.

Brazil is investing extensively into Industry Opportunities for UK companies 4.0. Its Internet of Things (IoT) sector is in Mexico Advanced Engineering valued at £306m and this is set to double by 2020. Aerospace and automotive development continues to grow. Brazil has a • Machine tools, industrial equipment and complex regulatory system, but its sizeable manufacturing technology and Automotive industrial base and a population of over • Specialised steels and alloys 220 million means that demand for new • Forgings, castings and stampings products and services is growing in all areas • Plastic injection moulding of industry. • Electronic components Mexico & Brazil offer the most significant opportunities in Latin Where there is demand for new technology, • Surface finishing, assembly and sub-assembly America, in the Advanced Engineering sector. the cost of doing business in Brazil and machinery Mexico can be reduced by incentive • Components for light vehicles packages. Advanced Manufacturing is well • Opportunities in supply chains at Tier 1, 2 and 3 Mexican manufacturingis fully integrated there is potential to supply them with UK established and is growing exponentially into industrial supply chains in the US technology, components and expertise. in the Latin American and Caribbean and Canada. The new US-Mexico-Canada Opportunities for UK companies region. UK companies offering solutions Agreement will continue to drive growth Market Detail in integratedlogistics, low carbon in Brazil in manufacturing development across technologies, lightweight components, the country. Mexico produces 3.4 million light vehicles and connected car solutions, advanced • Big data; artificial intelligence; virtual and 190,000 heavy vehicles per year. It is the materials and engineering consultancy have augmented reality applications Brazil has the largest industrial base in 4th largest auto part producer in the world, particular potential. • Machine interoperability Latin America, supplying their domestic exporting to 100+ markets. market and other regional markets. • Advanced production monitoring, analysis Aerospace, electronics, food and drink • Advanced manufacturing, robotics and Both countries have attracted sizeable production and domestic appliance materials technologies; Foreign Direct Investment from leading manufacturing also have sizeable presence • Integrated logistics solutions multinational companies in recent in Mexico. Notably, Mexico is increasingly • Low carbon technologies decades, with large manufacturing plants moving into new industries such as the For more advice and support on • Automated manufacturing established and extensive supply chains manufacturing of electric vehicles and growing your overseas trade, • 3D printing of parts and tools based in-market. Experienced Brazilian aerospace components, mainly for the please visit: www.great.gov.uk and Mexican engineering companies also US market. operate as part of these supply chains and 8 Opportunities for UK companies in Latin America and the Caribbean Opportunities for UK companies in Latin America and the Caribbean 9

Education

The Latin American & Caribbean education and training In 2017/2018 the DIT market has developed extensively in recent years. Public Education Team facilitated sector education reforms across the region have resulted in improved provision for a wider range of the population. almost £68m in new export business. Private sector demand for better quality education and training solutions has resulted in opportunities in Higher Education; Teacher Training; high quality English language teaching (ELT); Technical & Vocational education (TVET) and education technology. Latin America & the Caribbean is, without doubt, an exciting region Opportunities for UK companies with huge potential for UK companies in the education sector.

DIT’s Education Team facilitated new export business of Market Detail almost £68m in 2017/18 and have identified opportunities with a combined potential of over £500m for UK companies over the next 5 years. Education is high on the agenda in Latin America and Key opportunities fall within the following subsectors: the Caribbean and offers huge opportunities for UK suppliers in the sector. Brazil; Colombia; Ecuador; Mexico • English Language Proficiency (including around the next and Panama have recently seen significant education phase of the Brazilian Science without Borders initiative), reforms and new national projects which present particularly good opportunities for UK companies. • Vocational and Technical Training (eg. auto, aerospace, oil & gas and teacher training in Mexico), The rapidly growing Pacific Alliance trade bloc (Colombia, • Higher Education Trans National Education (especially Mexico, Chile & Peru) means that any one of these with links to industry - oil & gas, health and automotive), countries has the potential to act as a springboard • Education Technology (eg. distance learning) for UK exporters, particularly given that a key aim of the alliance is the harmonisation of standards and certification across a number of industries.

The UK’s main competitors in Latin America are the US (lower cost), the Spanish (language and legal system links), the Germans and Italians.

DIT works to identify strategic opportunities in overseas markets, working with UK representative bodies – eg. English UK, the Association of Colleges, Universities UK, the Russell Group, British Educational Suppliers Association (BESA) and Training Gateway to recruit suppliers matched to local needs.

We work with key local influencers in overseas regions such as SENA (Colombia’s Service for Technical learning), Chihuahua State’s (Mexico) Secretary for Education. We also work closely with local companies or buyers with the aim of raising awareness of the UK Education offer across the region. Student writes on a board at school 10 Opportunities for UK companies in Latin America and the Caribbean Opportunities for UK companies in Latin America and the Caribbean 11

Sao Paulo, Financial Services Brazil

The Latin America & Caribbean Market Detail region is the world’s 3rd largest economy. From Asset There is a keen appetite in Latin America & the Caribbean markets for innovation in Management to Fintech, these banking (13% of total local IT investment markets present a significant in 2017 came from banks). There is and developing opportunity demand for new services in insurance and in investment funds; the local for British business, with population tends to lack trust in local particular interest in technology providers. Sizeable opportunities for UK and products that are new and companies have been identified in the region, particularly in Brazil, Colombia and innovative. Mexico.

There is great interest in services that help The UK is the 3rd largest exporter of productivity or advance local insurance or services to Brazil, with 16.7% of this securities offers. Many of these gaps can be activity being in financial services. filled by UK companies whose experience is well recognised in the region. The UK is known to be host to over 1,000 companies in the Financial Technology (FinTech) sector. It also has some of the world’s most innovative accelerators. Fintech is regarded in Latin America as an instrument to improve financial inclusion.

In Mexico, where more than 60% of The UK is the 3rd the adult population does not have a largest exporter of bank account, a FinTech law was passed in March 2018 to address this issue. services to Brazil It is estimated that overseas financial companies could secure a 30% share with 16.7% share of the banking sector in the next 10 years. Local competition is developing in financial in areas such as insurance/reinsurance services. and companies. Expertise in service improvement is in demand. Opportunities for UK companies Reduction of regulation in areas such as Asset Management and Fintech continues • UK Asset Management companies; • In Colombia, the National Development and consequently the markets are opening plan proposed a regulatory sand-box and up to overseas investment. • Reinsurance: Lloyd’s is the second-largest specialized operating licences for different player in Brazil; it is also a key player types of Fintech. Continuing economic reforms, particularly in Mexico. There is scope for more UK in Brazil, Mexico and Colombia, are reinsurers to benefit from the regulatory • Asset Management: UK Asset Management expected to result in more opportunities changes underway. capabilities are well recognised in the for UK companies. Latin America and region. There is potential for these • There are opportunities in Colombia for UK the Caribbean financial markets are keen companies to grow business in a number Investment Banks to advise and structure to see more international companies of Latin American markets where provision green bonds and regular issuances in the entering their markets with cutting-edge is underdeveloped. Positive change in Capitals Market. technology, providing new solutions to regulatory limits for funds’ asset allocation local problems. is expected in 2019 12 Opportunities for UK companies in Latin America and the Caribbean Opportunities for UK companies in Latin America and the Caribbean 13

Rodda’s Cornish Clotted Cream, Protected Designation of Origin There are significant Food and Drink opportunities for UK Food and Drink companies Fast-growing populations Brazil represents an excellent opportunity for UK food & drink products, with a sizeable with a unique offer with increasing disposable population between 15-34 years old who income and reducing trade are familiar with international products or a strong brand, barriers make Latin America and a £167 billion consumer market (which accounts for 12.3% of the country’s GDP). in markets such as & Caribbean markets an Approximately 20,000 new products are Argentina, Brazil attractive destination for launched in Brazil every year, with 50% at British food and beverage high price points. Some products need to and Mexico. be registered; some are subject to changing companies. regulations or quotas in the Brazilian market. British products are seen to represent Argentina has opened up to UK products quality and authenticity, so often sell at considerably in recent years, thanks to an high price points in these markets. Whilst improving trade environment that allows it can be difficult to compete in agricultural Argentinian companies to import products produce and goods at the lower-priced end more easily. Whilst Argentina is a leading of the sector, British products that have food producer in itself, the consumer market unique features and quality ingredients is sophisticated and interested in quality UK will see great demand and openness to food and drink products. trying new products. There are significant opportunities for UK companies in Argentina, Brazil and Mexico. Opportunities for UK Companies Market Detail British products in demand in Latin America Growing consumer spend in Latin America and the Caribbean are: & the Caribbean is driving rising food and drink consumption with year on year • Spirits and craft beers. growth in the region of over 31%. • Delicatessen, gourmet, organic, gluten-free, preserves, condiments and confectionary. Mexico is the leading destination for UK food & drink products in Latin America & • Weight loss; gluten free, organic and other the Caribbean – it has a rapidly growing healthy lifestyle products. population with disposable income which • Ready-to-drink beverages. is boosting demand for premium products, convenience food and drinks. Longer • Dairy, beef, pork and other primary working hours are fuelling demand for products. higher-value processed and quality food. • Ingredients for processed food By 2020, consumption of alcoholic and non-alcoholic drinks in Mexico is expected to have grown by 11.4% and 10.8%, respectively against 2015 levels. However For more advice and support to new brands need to have a clear USP grow your overseas trade, please and to be able to compete with a strong visit: www.great.gov.uk domestic market. 14 Opportunities for UK companies in Latin America and the Caribbean Opportunities for UK companies in Latin America and the Caribbean 15

Juscelino Kubitschek Bridge, Brazil For more advice and support on how to grow your overseas Mexico City Sao Paulo Buenos Aires markets, visit: www.great.gov.uk

Mexico: Brazil: Argentina: Tren Maya (a passenger Sao Paulo Metro Orange Line; Upgrading of Ezeiza Airport; train connecting 5 states in Monorail Salvador; Ferrograo rail network renewal; expansion southeast Mexico); refurbishing railway project; privatisation of Buenos Aires underground; and capacity expansion of Sanepar Water Utility; rail at Mexico City and Toluca concession renewal; new International Airports; the airport concession round. Trans-Isthmic Train.

Cartagena Cartago, Peru Costa Rica

Colombia: Costa Rica: Peru: New airport at Cartagena; new High Speed Electric Train; a Lima Metro; Northern Peru Metro in Bogota; the Central new International Airport. reconstruction; urban Railway concession. regeneration of Villa El Salvador, the expansion of Lima airport and a new airport Infrastructure in Chincheros. Opportunities for UK Companies

Important opportunities have been identified as relevant Panama City According to the Inter-American Development Bank (IDB), the to UK companies for UK companies with expertise in: governments of Latin America would need to devote 5% of their GDP • Project & cost management annually into infrastructure to catch up with more advanced economies. • Financing schemes (PPPs, BOT) • Architectural design Whilst the level of investment has been Market Detail • Master planning/engineering services much lower (a yearly average of 2.4% of • Security GDP between 1992 and 2013), a significant • Consultancy services Panama: number of programmes have been launched DIT teams have identified opportunities • Rolling stock across the region to improve the quality and accessible to UK companies in Argentina, • Signalling 11 water & sanitation projects; a coverage of infrastructure; the aim being to Brazil, Colombia, Costa Rica, Mexico, Peru • Bridges fast train from Panama-Costa achieve greater economic growth. and Panama. Major projects include:- • Flood prevention equipment Rica. 16 Opportunities for UK companies in Latin America and the Caribbean Opportunities for UK companies in Latin America and the Caribbean 17

Plants grow in a test tube in a lab Opportunities Life Sciences for UK companies Brazil Annual healthcare expenditure in Brazil is With growing economic wealth, a rapidly growing population and expected to reach US$197 billion by 2020 (or 9.8% of GDP). Demand is partly driven by an improving healthcare delivery systems, Latin America & Caribbean ageing population, leading to higher demand markets have seen the growing presence of international investment in for pharmaceuticals. Trade in international the Life Sciences sector. brands represent 47.5% of the market and supply of pharmaceuticals must grow at 9% per year to meet demand. Growth in medical There has been significant growth in Market Detail devices is driven by a large private healthcare clinical trials taking place in the region and system (reaching 23% of the population), and in medical tourism. Expansion in high- is expected to see sales of US$5.3 billion by end private sector medical facilities and Growing wealth and greater demand for 2020. Expenditure on diagnostic equipment is specialist clinics across the region indicates improved healthcare services, particularly in expected to be more than US$180 million per that the sector is growing at some pace, private healthcare, has resulted in significant annum in the coming few years and represents resulting in strong demand for new medical growth in the Life Sciences sector in Latin a significant opportunity. devices and services. America and the Caribbean. Concern about diseases such as cardiac conditions, cancer, diabetes and chronic respiratory disorders Mexico There are significant opportunities in Life has resulted in significant demand for new Sciences for UK companies with advanced products, services and initiatives to help Pharmaceutical manufacturing is one of technologies, particularly in Brazil, reduce morbidity rates. Insufficient domestic Mexico’s top three industries, estimated to be Colombia, Cuba, Mexico, Panama and Peru. development and production of medical a market worth US$36 billion by 2020. From technology and pharmaceuticals means a 2017 baseline, Mexico’s medical devices that countries rely on overseas suppliers or market will grow by about 33% by 2020, to manufacturing of international brands in their US$6.5 billion. Obesity-related treatments For more advice and support markets. As a well-regarded UK strength, the reached more than US$5 billion - 72.5% of to grow your overseas trade, Latin American & Caribbean region presents adults in Mexico are diagnosed as clinically please visit: www.great.gov.uk a significant opportunity. overweight or obese.

Colombia Colombia has growing universal health coverage. The Colombian pharmaceutical market is on the rise, surpassing the size of Argentina’s market just recently. Total healthcare expenditure is forecast to reach US$25 billion by 2020. The Colombian regulatory environment is rapidly improving and we expect to see UK companies winning business, as a result of these important changes.

Peru The expansion of universal healthcare coverage in a flourishing economy, an ageing population and the growth of non- communicable diseases will be key drivers of demand for increased expenditure in pharmaceuticals and medical devices in Peru. 18 Opportunities for UK companies in Latin America and the Caribbean Opportunities for UK companies in Latin America and the Caribbean 19

Marine Mining Mining in Latin America

The most significant opportunities for UK companies in the marine The Mining sector in Latin sector are to be found in the Brazilian market. America represents a significant opportunity for There is demand for technology and The development of deep-water projects in UK companies. Production support services right across the sector. the Oil and Gas sector has also been a key Notably, the Brazilian shipbuilding industry factor. An important resource, the Brazilian costs are soaring as labour, in Brazil is focussed on delivering vessels Merchant Marine Fund (FMM) was designed energy and water costs rise; for a wide range of industries: Oil & Gas, to provide resources for the development these concerns, coupled with Port Transport, Navy, Inland Waterways of the Merchant Navy and the Brazilian and Leisure. shipbuilding and repair industry. In 2019, its the decline in ore grades Board of Directors approved £1.36 billion to and volatile commodity finance shipbuilding projects, an increase prices mean that operating Market Detail of 70% compared to the previous year. In December 2018, Brazil had 174 vessels under companies need to make Within the last 15 years, the Brazilian construction. Within this programme, £500 efficiency gains. marine sector has grown significantly. million is focused on new projects including the manufacture of container vessels; Government policy and programmes have They also need to improve compliance passenger transportation; ship repair and driven this activity and have revitalised the with international legal obligations. There shipyard installation and modernisation. shipbuilding industry. is demand for technology that helps local companies comply with environmental Opportunities regulations, that saves energy and water for UK Companies or that results in productivity gains. UK companies are recognised as having the These mining operations need products Port of Rio de Janeiro, expertise and technology to help. and services across the entire supply chain. Brazil • Ports There is a current portfolio of more than 250 • River transport: there are several vessels Market Detail mining projects in Latin America at various under construction and new projects stages of development, from feasibility study being developed to support the exporting to construction. demands of the Agribusiness industry Latin American markets offering significant opportunities in mining are Argentina, • Defence sector – naval vessels Brazil, Bolivia, Chile, Colombia, Ecuador Opportunities • Leisure – various size vessels and and Peru. There are sizeable and growing for UK Companies components operations in the mining of copper, gold, iron ore, silver, molybdenum and recently lithium (the “lithium triangle” – Argentina, • Exploration & Resource Evaluation: project Bolivia and Chile – contains more than 50% management; geological consultancy; of global lithium deposits). A conservative engineering; environmental consultancy; estimate suggests that the world’s lithium community and stakeholder engagement; market is worth US$1.7b. Annual growth risk management; hydrology. of 25% has been seen due to demand in • Engineering & Development: procurement, electric vehicle production. cost control, construction and complex equipment. • Operation: blasting; drilling; haulage; grade control and surveys; processing; mineral extraction; waste management. • Water and energy conservation, desalination. • Efficiency; mine closure (site remediation). • Mining-related vocational training. 20 Opportunities for UK companies in Latin America and the Caribbean Opportunities for UK companies in Latin America and the Caribbean 21

Market Detail: Market Detail:

Oil & Gas Brazil Mexico Brazil is the largest energy market in South In 2013, historic energy reform took place in America and has the second largest oil Mexico with PEMEX, the national oil company, British companies with reserves in the region with 12.8 billion barrels opening the oil and gas market to the private of proven reserves. The sector accounts sector. Through recent decades, development expertise and technology in for 10% of GDP. Average oil production in had stagnated and the industry was very the Energy sector have seen November 2018 was 2.6 million bpd (barrels inefficient. However, since the reforms, Mexico significant progress in Latin per day). With the new Brazilian government has implemented ambitious changes to its in place, significant market development market operations, opening up fuel and natural America and the Caribbean in is expected this year with excellent gas activities and seeing sizeable projects being recent years. Opportunities opportunities for UK companies to engage. awarded to multinational companies. There is have opened up both in the continuing, significant, potential for industrial transformation, distribution, commercialisation, There are currently 31 operators in Brazil traditional industry of oil & environmental development and refinery with 493 fields in production (onshore and development to meet growing energy demand gas as well as in renewable offshore). Companies involved in offshore in Mexico, to enhance the country’s energy energy development. activity are: Petrobras, Shell, Equinor, BP, security and to enable Mexico to compete in the ExxonMobil, TOTAL, Repsol, Chevron, QGEP international market. Since 2015, Mexico has held and PetroRio. Brazil has taken steps to As markets such as Brazil and Mexico 9 E&P bidding rounds, awarding 107 contracts to improve the business environment in the oil continue to invest and open up their State- 73 companies, attracting estimated investment and gas sector. Brazil has recently reviewed owned industries, there is scope for UK of US$160 billion into shallow water, deep water its regulatory frameworks to attract more businesses to win an ever greater share of and onshore blocks. Investment in natural gas international investment by: the market. Markets such as Argentina, pipelines is set to grow by 40% by end 2019. the Caribbean and Colombia are also The fuel distribution market is at the threshold seeing significant growth. Companies with • Improving local content policies of opening up to overseas expertise: liberalised new technologies that upgrade existing • Reviewing and improving the natural gas prices and fuel imports offer new opportunities production sites or help increase efficiency regulatory framework in infrastructure, storage, distribution and are in particular demand. transportation of fuels to meet demand. This will • Establishing an agenda of bidding rounds attract an estimated investment of US$16 billion. in 2019 • Renewing its tax regime (REPETRO) Opportunities in Mexico: • Developing Petrobras’ divestment programme There is a broad range of technology demand in the Mexican energy market: Opportunities in Brazil: • Engineering – offshore and industrial transformation Brazilian companies look to the UK for technology and support in the following • Enhanced oil recovery areas: • Drilling and well capabilities

• Subsea infrastructure – FEED & • Health and safety development • Integrity management • Repair & maintenance of offshore assets • Maintenance and operation for onshore gas • Enhanced oil recovery pipelines • Decommissioning • Marine pipelines; subsea capabilities in deep and shallow water • Process industry supply chain (steel alloys, valves, automation) • Training equipment and taskforce training

Offshore oil rig, North Sea, UK, 22 Opportunities for UK companies in Latin America and the Caribbean Opportunities for UK companies in Latin America and the Caribbean 23

Opportunities in the Latin American & Caribbean Energy sector: Renewable Energy Argentina Colombia Opportunities are growing in the Argentinian Transition from a highly regulated economic market as the government continues to regime to an open market has developed liberalize market conditions to promote new well in Colombia, since 1990. Whilst The Latin America & the Caribbean region is one of the most exciting capital investment and to exploit Argentina’s struggling with security, Colombia has a vast natural resources. These opportunities rapidly developing oil sector with significant, global markets for UK renewable energy companies with over 25% of include the world’s 2nd largest recoverable untapped, natural gas reserves as well primary energy coming from renewable sources. Brazil and Mexico shale gas (802tcf), the 4th largest shale oil as good potential in renewable energy are at the forefront of this fast-growing development. (27bn bbl) reserves, and a well-established development. It has high reliance on hydro- hydrocarbons industry: oil production electric power and there are significant plans of 479,283 bpd (15% unconventional); to develop its electricity infrastructure. In 2016, renewable sources were responsible Market Detail gas production of 130 MMm3/day (37% for 43. 5% of installed energy capacity in unconventional). Brazil, or 125, 3 MTep. In 2016, the Brazilian DIT in Latin America and the Caribbean Ministry of Energy forecast that 81.7% of Brazil provides extensive support in the oil and gas the electric power matrix would come from A new offshore licensing round was launched sector; our teams have a lot of experience of renewable sources. In Mexico, in 2017, By 2026, the aim is for the breakdown of in late 2018, with bids for 31 shallow and working with local organisations at senior and 21.08% of national electricity was generated supply of power generation in Brazil to deepwater blocks due to be considered in technical levels and have excellent contacts by clean energy sources (69,396.16 be: Commercial 19.8%; Residential 29.7% March 2019. Annual investment across the and insight. GWh). Installed clean energy capacity was and Industrial 33.5%. In 2024, PV power oil & gas sector is around US$9bn, expected 22,327.40 MW, or 29.5% of national installed generation is expected to be over 7000 to rise to US$24bn by 2023 and with a MW. In a similar timeframe, biomethane They organise events and raise awareness of capacity. By 2024, the aim is to have 35% doubling oil & gas production within 5 years. production will reach 10.7 million m3 / day, the UK’s capabilities through a programme of national power in Mexico generated from Key operators and oilfield service companies highlighting the significant potential for of regular visits, inward to the UK and clean sources. include YPF, Pan American Energy (50% BP), biomass and biofuels partnerships. There is out to markets, in particular Brazil and Exxon Mobil, Total, Shell, Chevron, Equinor, also significant scope for energy efficiency Mexico. Working with operators and prime Wintershall, Halliburton, Schlumberger, Baker technologies in Brazil. The Brazilian contractors in the market, particularly on Hughes and Techint. Government has announced £100 billion supply chain development, and drawing on Inland Wind Turbines investment for the next 10 years in Electricity financial backing available through UK Export (Generation and Transmission); Natural Gas Finance has yielded a strong and growing The Caribbean and Biodiesel/Ethanol and Energy Efficiency level of business secured for UK companies. and Smart Grid solutions which creates The Southern Caribbean is rapidly strong demand for this kind of technology. emerging as a regional deepwater province, as evidenced by an increased level of exploration activity and discovery in Trinidad Mexico & Tobago, and Guyana. Trinidad and Tobago For more advice and support on Reforms in the energy sector have is the largest oil and natural gas producer in growing your overseas trade, encouraged the development of clean the Caribbean, with estimated gas reserves of please visit: www.great.gov.uk technologies in Mexico, achieving growth 43.7 trillion cubic feet. of 6.98%. In 2017, PV installed energy capacity saw growth of 73.73% (285.13 In Guyana, proven oil-equivalent recoverable MW). This is due to improved distribution reserves are 5 billion barrels, making it a systems. Potential for development of world-class hydrocarbon basin. While other wind power is expected to be 12,000 MW islands in the Caribbean are comparatively by 2020. Recent national power generation less focused on fossil fuels, there are bids are transforming Mexico into a globally significant opportunities to engage on competitive market. renewable projects, specifically solar, wind and geothermal.

For more advice and support on growing your overseas trade, please visit: www.great.gov.uk 24 Opportunities for UK companies in Latin America and the Caribbean Opportunities for UK companies in Latin America and the Caribbean 25

A focus on Latin America and the Caribbean markets

Latin America and the Caribbean is home to some of the world’s most rapidly developing economies and offers huge opportunities for UK companies that want to grow their business overseas.

Demand for quality UK products and We export over 3 times more to Ireland services has grown in Latin America than we do to the whole of Latin and the Caribbean in recent years but America. the UK has some catching up to do, to Political reform in Brazil and Mexico has take advantage of the growing trade and facilitated improved market conditions investment trends in the region. The for UK companies to trade in the region. big industries of Mining and Oil & Gas A thriving mining industry in Chile and continue to grow and open up to new Peru has enabled these countries to technologies and overseas investment. raise local standards of living. Long- New industries, such as Life Sciences, established relationships with the Renewable Energy and Marine, represent Caribbean have been strengthened by new opportunities. These are sectors growing trade between the UK and this where UK companies have a lot to offer. strategically located region. Where UK It’s worth highlighting: companies have unique technology or Mexico is forecast to join Brazil in world’s specialised services, they have seen top 10 economies by 2030 particular success. There is a huge potential for us to build from this base. Chile, Peru, Colombia and Mexico are ranked as easier places to do business With a team of 130 staff based in than India, South Africa, Vietnam and the region, DIT’s market experts can Indonesia provide advice on the potential for your company; they will advise on managing Forecast growth is 2.7% across the risk or challenges and they can help region until 2023 establish the route to market with In 2017 less than 1% of Latin America’s tailored solutions. imports of goods – and 3.4% of services – were from the UK

Colombia 26 Opportunities for UK companies in Latin America and the Caribbean Opportunities for UK companies in Latin America and the Caribbean 27

Argentina Hundreds of millions of pounds of UK goods Argentina is the second largest UK companies exporting to and services are economy in South America. Over Argentina will find: exported to Barbados 120 UK companies operate in • High level professional skills, including the and the Eastern Argentina, including over 20 highest English Proficiency Index in region FTSE 100 companies. Business Caribbean each year. • Second largest manufacturing capability in opportunities are increasing as South America Barbados Argentina returns to growth • Sophisticated market with European tastes and market conditions are • Member of the MERCOSUR trading bloc liberalised. • Two daily direct flights with the UK • Double Taxation and Investment Promotion Barbados & Market Detail and Protection Agreements with UK

Argentina has a natural resource base with the Eastern Caribbean high growth potential: it is the world’s 5th Opportunities for UK largest producer of agricultural commodities, companies: such as soy and maize; it has the world’s 3rd largest deposits of shale gas and 4th • Agribusiness Barbados and the Eastern Caribbean are ideal markets for British Small largest deposits of shale oil and it has under exploited reserves of lithium, copper, gold • Creative Industries and Medium Enterprises (SMEs) to pursue business. These countries enjoy and silver. • Energy a warm, summer climate throughout the year with excellent connections to major airports in London, Manchester and Glasgow facilitated by UK • Financial Services Politically and economically, Argentina is airlines British Airways and Virgin Atlantic. re-engaging with the global economy and • Food & Drink reforming the business environment. In 2018 • Infrastructure (rail/aiports) it successfully held the G20 Presidency and is The business systems and processes in these for Overseas Development Aid (ODA) from seeking accession to the OECD. • Mining markets will be familiar to UK firms as legal donor institutions like the DFID, EU Aid, Inter- • Technology systems are based on the English rule of law. American Development Bank (the World Bank) Since 2016 there has been a marked In addition, local buyers in these markets are and others. improvement in the UK-Argentina bilateral familiar with UK products as the UK has been relationship, including a landmark Joint ranked in the top 5 most significant trading UK businesses exporting to Communiqué that provides a framework for partners for many years in these markets. enhanced trade and investment. Barbados and the Eastern Argentina is the Caribbean will find: second largest Market Detail • UK oriented culture and business practices economy in Barbados is the strongest business destination in the English Caribbean with • Similar legal and political systems South America, extensive links and shared history with the • Excellent connectivity to the UK and UK. Over 200,000 UK citizens visit Barbados European markets with over 120 each year with hundreds of millions of UK companies pounds of UK goods and services exported • Preferential market access granted through to Barbados and the Eastern Caribbean the CARIFORUM-EU agreement operating here. each year. Barbados and the wider Eastern • Politically stable economies ranked high in Caribbean(Antigua, Dominica, Grenada, rule of law and corruption perception indices St. Kitts, St. Lucia and St. Vincent) is rich with commercial opportunities in the • Strong and globally integrated business base Aid-Funded Business (AFB) sector with • Well-established property rights and rule of Casa Rosada in Buenos Aires, several countries continuing to be eligible law Argentina 28 Opportunities for UK companies in Latin America and the Caribbean Opportunities for UK companies in Latin America and the Caribbean 29

Brazil Chile

Brazil is currently the 8th economy in the world and the largest in Latin Chile, a commercially like- UK companies exporting to America & Caribbean with a Gross Domestic Product (GDP) of USD 2.3 minded and open partner, is Chile will find: trillion. It is a gateway for business in neighbouring countries. 400 of the one of only two OECD member world’s 500 largest companies operate in Brazil. These include many UK countries in Latin America and • Over 100 UK companies have direct operations in Chile, with many more companies, such as Rolls Royce, Shell, BP, JCB, Rexam and Experian. The the Caribbean. It has the highest working through local partners, UK ranks as 14th most significant trading partner in Brazil. Gross Domestic Product (GDP) demonstrating a strong British commercial per capita in the region. community. • A strong association with British products, Market Detail Opportunities It is an ideal place to develop and explore new and a notable cultural alignment with the in Brazil for UK companies: opportunities thanks to its natural riches and UK. Brazil is the largest economy in South America, demand for innovative solutions. The Chilean • Excellent relations with the UK – Chile is the accounting for about 50% of the continent’s GDP. • Advanced Engineering and Automotive people are amongst the best educated in first country in the world with which the UK Brazil and the UK have long historical ties in trade the region with a skilled workforce. They are • Agritech signed a trade continuity agreement. and investment. Trade between Brazil and the UK keen followers of global trends and consider increased by 5% between January and October • Creative Industries themselves at the forefront of innovation in 2018, reaching US$4.4 billion compared to the same • Defence and Security the region. Opportunities in Chile for UK period in 2017. This was mainly driven by a 9.7% • Education companies: increase in Brazil’s exports to the UK, to US$2.4 • Energy billion. The UK is currently the second largest Market Detail investor in Brazil. The sectors which attract UK firms • Financial Services Chilean companies are keen on solutions that are: business services, mining, metals and ICT. The • Food & Drink Chile is the fifth largest economy in South improve efficiency in the following sectors: political environment should stabilise. The recently • Infrastructure America and a key player in regional and elected government of Jair Bolsonaro is prioritising • Mining (Copper and Lithium projects, • Life Sciences international collaborative initiatives, having the improvement of Brazil’s business environment, signed 26 Free Trade Agreements covering cybersecurity, insurance and green mining) • Marine reducing barriers to trade and increasing Brazil’s 64 countries. This gives them preferential • Life Sciences/Healthcare/Energy engagement in global value chains. • Mining market access to more than 4 billion • Smart Cities and Technology consumers. It is also a founding member of • Infrastructure (US$9bn Infrastructure the Pacific Alliance and the CPTPP, making Fund, 2023 Pan-American Games, Digital UK companies exporting to Brazil Infrastructure, water management) will find: it an ideal launch pad for the whole region. Chile is ranked the highest in South America • Financial Services (new insurance law, new for ease of doing business (Source: World FinTech law, new pension law) • European oriented culture and business practices Bank) due to its political and economic • Food and Drink • Political stability stability. It ranks 27th globally in the Corruption Perception Index as the 2nd least • Expanding consumer market • Technology corrupt country in Latin America (Source: • Creative Industries • Strong and globally integrated business base Transparency International). • Solid and modern banking system, with presence of • Defence and Security World’s largest investment banks As a strong commodity economy • Expanding labour force (mining, agriculture) with growing service • A gradual trend towards deregulation and reducing sectors, there are many opportunities in red tape modernisation, digital and eco-friendly initiatives. This is also true of the consumer goods, infrastructure and healthcare sectors.

Sao Paulo, Brazil 30 Opportunities for UK companies in Latin America and the Caribbean Opportunities for UK companies in Latin America and the Caribbean 31

Bogota, Colombia Costa Rica Colombia is the UK’s fourth largest export market in Costa Rica is one of the most UK businesses exporting to stable countries in Latin Costa Rica will find: Latin America. America. It has an open economy and well-diversified economy • Political stability focused on services, tourism and • Excellent business climate advanced technology. Many top • San Jose was ranked as the best hub for UK businesses are established electronics manufacturing, IT, Life Sciences in Costa Rica, including: and Financial services in Latin America • Steady Gross Domestic Product (GDP) AstraZeneca, Smith & Nephew, growth of approximately 4% since 2010 VITEC Group, BAT and GSK. • Highly educated and efficient workforce, with a top quality education system Colombia Market Detail Opportunities in Costa Rica for In 2017, Costa Rica received around £2 billion in Foreign Direct Investment (FDI). It is the UK companies: Colombia is the fourth largest economy in Latin America and the second highest recipient of FDI in Latin Caribbean. Over 100 UK business operate in the Colombia, including well America per capita. • Environment and water: green known companies like BT, Diageo, Jaguar/Land Rover, GSK and Shell, as technologies, water treatment plants, water dispensers and technologies well as some small and medium sized companies. In 2017 UK exports to Costa Rica totalled £67 million. Top products were pharmaceuticals, • Food & Drink : frozen, gourmet, gluten-free chemicals, vehicles and spare parts, spirits, products, organic drinks, healthy snacks, Colombia has improved its business • A developing location as a regional hub with liquers and beverages, machinery as well sweets, jams and alcoholic beverages environment in recent years, opening up duty free access to the other Andean nations, as essential oils, perfumery and cosmetic the market to international companies. Mercosur and Chile preparations. • Healthcare and medical devices : The UK has been the third largest investor modernising hospitals, medical disposables, • A ‘top reformer’ in 5 of the last 8 years in Colombia over the past 10 years, with diagnostic imaging according to the World Bank During the same period, UK imports recorded investments of USD 15.6 billion • Security : Training, electronic security, between 2000 and 2013. • A tradition of stable economic growth from Costa Rica were worth £243 million including roots and tubers, flowers, surgical physical security, banking security • The top country in Latin America (and sixth instruments and fresh fruit and vegetables. • Infrastructure : construction equipment, Market Detail in the world) for investor protection Total trade in goods and services between rail feasibility study, projects for highway, the UK and Costa Rica totalled £310.7m in Colombia has 15 trade agreements in force • Skilled workers and the second most flexible bridges and port expansion plans 2017, a 12.6% increase from 2016. and 7 investment treaties (including the UK); labour market in Latin America it is a member of the Pacific Alliance and Andean Community of Nations. Colombia Opportunities in Colombia for has an open economy, with foreign trade worth 29% of GDP. In May 2018, Colombia UK companies: signed the Accession Agreement with the In 2017 UK Organisation for Economic Co-operation and • Advanced Engineering and Automotive Development (OECD). exports to Costa The night skyline of San Jose, • Education Rica totalled £67 Costa Rica UK companies exporting to • Financial Services Colombia will find: • Infrastructure million. • Defence and Security • The UK’s fourth largest export market in Latin America • One of the most open markets in Latin America with 15 Free Trade Agreements 32 Opportunities for UK companies in Latin America and the Caribbean Opportunities for UK companies in Latin America and the Caribbean 33

El Capitolio, the National Capitol Building Havana, Cuba Dominican Republic Cuba imports 80% of the market needs. The Dominican Republic has UK businesses exporting to the the largest economy in the Dominican Republic will find: Caribbean and central American region. It has a Gross Domestic • English widely spoken as a business Product (GDP) of USD 76.03 language billion. It’s a developing country • No exchange controls primarily dependent on tourism, • Largest consumer market in the Caribbean free zones manufacturing, • Excellent port and airport connectivity trade and agriculture. UK • Open economy with strong appetite for companies operating in the imported goods and technology Dominican Republic include • Stable political and economic environment BT, Bupa International, De La • Currency stability Cuba Rue, Deloitte, Diageo, Ernst & • Modern transportation infrastructure Young, G4S, Pinewood Studios and Unilever. Opportunities in the Dominican Cuba is a unique market with one of the world’s few remaining centrally Republic for UK companies: Market Detail planned economies. The state controls the economy and employs over 7₀% • Food and Drink of the total workforce. Cuba is going through significant economic reform. The Dominican Republic’s strategic • Consumer retail This has led to more interest from international companies due to the geographic position, ports and airports allow reduced risk of doing business in Cuba. just in time access to the United States, Latin • Infrastructure America and the Caribbean. The Dominican • Energy (Renewable and Conventional) Republic is a member of the World Trade Organization (WTO) and the Caribbean • Agriculture The Cuban markets offers growing UK business exporting to Cuba opportunities across 16 sectors with more Community (CARICOM). than 500 business projects in the business will find: portfolio. Now with a new Constitutional Agreement in place, there are positive • Low labour costs changes to the country’s regulatory • One sole customer: government Architecture in Santo Domingo framework, facilitating a better business Dominican Republic • English is accepted as a business language environment. • Strategic position in the Caribbean • Highly educated and skilled workforce Market Detail • Low crime and pollution rates • Stable political environment Cuba imports 80% of its market needs. Its The Dominican main export earnings come from medical products & pharmaceuticals, tourism, nickel, Opportunities in Cuba for UK Republic has a tobacco, shellfish, citrus, coffee and sugar. companies: GDP of USD 76.03

Cuba-UK trade has continued to develop • Renewable Energy billion. and has remained stable in difficult • Oil and Gas circumstances, whilst significant volumes of products/services are often re-routed via • Healthcare/ Biotech & Pharma third countries to overcome US Embargo • Tourism Infrastructure restrictions, which means trade figures are • Manufacturing Industry not representative. • Financial services 34 Opportunities for UK companies in Latin America and the Caribbean Opportunities for UK companies in Latin America and the Caribbean 35

Ecuador Guyana

Ecuador is the ninth largest economy for UK exports in Latin America. Guyana is the fastest growing economy in the Caribbean Community Many UK companies are already doing business in Ecuador, including (CARICOM) and the newest Oil & Gas frontier market. It is gearing up for BUPA, Unilever, AngloAmerican, GSK, Diageo, G4S and AON Risk first oil in 2020 with an estimated production of 120,000 barrels of oil per Services. UK goods exports more than doubled in 2017. day (bopd), and this is expected to reach well over 500,000 bopd by 2025 all through just one Oil operator. Market Detail UK companies exporting to Ecuador will find: Companies such as the UK’s Tullow and Spain’s Repsol are already actively exploring Guyana One of Latin America’s largest crude oil and start drilling this year. Beyond 2020 exporters, Ecuador has extensive natural government oil revenues are expected to resources – oil, gas, and minerals. Mining is a • Improving market conditions for average US$365 million annually. relatively underdeveloped sector in Ecuador, international companies but the country’s potential is drawing a lot of international attention. There are growing • Dollarised economy Market Detail supply chain opportunities. Guyana maintains a consistent economic UK goods exports to Ecuador have more than Opportunities in Ecuador for UK growth rate, with an economy that is centred doubled since January 2017. companies: on agriculture, mainly rice and mining, mainly gold and bauxite. Leading UK exports are currently: pharmaceutical products, spirits, machinery • Mining and chemical products. Guyana has averaged 4.0% per annum • Security growth for the last decade, helped by political • Oil & Gas stability, a commodity boom, significant FDI and prudent macroeconomic management. • Infrastructure • Renewable energy UK businesses exporting to UK goods exports • Tourism to Ecuador more Guyana will find: than doubled in • Low-cost and flexible workforce • Unrestricted repatriation of profits, capital 2017. and dividends • Double taxation agreement with the UK Opportunities in Guyana for UK • A signed Treaty for the Promotion and Protection of Investments. companies: • Competitive fiscal incentives for investors in key sectors • Oil & Gas • Legislation based on UK common law • Infrastructure • Direct sea-freight link to the UK • Donor Funded projects • Well-organised, regulated financial system • Renewable energy • English established as official language • Security • Established property rights and rule of law

Historic Quito Ecuador 36 Opportunities for UK companies in Latin America and the Caribbean Opportunities for UK companies in Latin America and the Caribbean 37

Ocho Rios City, Jamaica Mexico In 2016 the UK market share in Jamaica was £55.2 million, with Mexico is the world’s 14th largest UK businesses exporting to economy, according to the Mexico will find: trade continuing to International Monetary Fund flourish. (IMF) and World Bank analysts • Market about the same size as western predict that its economy will Europe with a population of over 120 million be the world’s 9th largest by • Largest economy in Latin America, after Brazil 2030. In 2017, bilateral trade • Free trade access to the US market through between the UK and Mexico was the revised NAFTA (the USMCA) worth US $4.7 billion. Many • First Latin American member of the Jamaica large UK companies operate Organisation for Economic Co-operation in Mexico, including HSBC, and Development (OECD) GSK, AstraZeneca, BAT and the • More free trade agreements than any Intercontinental Hotel Group. other country – 11 agreements covering 44 Jamaica is one of the fastest growing economies in the western hemisphere markets with a potential market access of and ended 2016 with a Gross Domestic Product (GDP) of £10.7 billion. up to 60% of the world’s Gross Domestic Jamaica is also the largest English speaking country in the Caribbean and Market Detail Product (GDP) serves as a gateway to the rest of the countries in the region. Mexico is member of the OECD and Opportunities in Mexico for UK increasingly vocal in defence of free trade. The Jamaican government is keen on UK companies exporting to The previous Mexican Government’s decision companies: encouraging the participation of international Jamaica will find: to open up its energy industry has generated players in the island’s business landscape huge opportunities for British businesses. • Advanced Engineering and Automotive which paves the way for additional British There are many areas of shared opportunity • Infrastructure investors. In just 10 years, the country has • Robust telecommunications network and across a range of sectors. They are the most attracted an estimated £5 billion in foreign infrastructure likeminded of all Latin American countries. • Financial and Professional Services direct investments. This has seen many UK • Political stability • Food & Drink firms doing business in Jamaica such as Kier, • Direct sea-freight link to the UK Shell, Mott McDonald and De La Rue. Global • Oil and Gas investment interest will continue to increase • Significant demand for overseas goods and as the government pursues their robust services growth agenda; Vision 2030. • English spoken broadly • Low operational costs Market Detail • Abundance of natural resources and raw materials World Bank • Laws and systems that are similar to those Zocalo, Jamaica’s growth has been attributed to in the UK analysts predict Mexico major investments in the tourism, logistics and Business Process Outsourcing (BPO) that Mexico’s sectors.The country ranked 1st in the Opportunities in Jamaica for Caribbean and improved its ranking to 70th UK companies: economy will be place in the Ease of Doing Business index, as a result of strategic business reforms, the world’s 9th enhanced management of all ports and • Infrastructure largest by 2030. improved fiscal consolidation. The country • Agribusiness also wields considerable influence over • Renewable Energy multilateral trade negations within the region. • Food and Drink / Manufactured Goods UK exports to Jamaica were £55.2 million in 2016 and bilateral trade relations continue to • Creative Industries flourish. • Health Tourism / Nutraceuticals 38 Opportunities for UK companies in Latin America and the Caribbean Opportunities for UK companies in Latin America and the Caribbean 39

Machu Picchu, Panama Peru

Panama’s economy is based on a UK companies exporting to large service sector. The service Panama will find: sector accounts for 80% of its Gross Domestic Product (GDP). • 100% foreign ownership is allowed Panama is Latin America’s • No restrictions on the transfer and repatriation of capital and profits leading recipient of Foreign • Panama became a member of the World Direct Investment (FDI) as a Trade Organization (WTO) in 1997 and is percentage of GDP. a beneficiary of the General System of Preference (GSP) programmes and the Caribbean Basin Initiative (CBI) Many UK companies operate from Panama, including well-known companies such as • Panama uses the US dollar and there are no Aggreko, Biwater, Diageo, GSK, Solar Century foreign exchange controls Peru and Unilever. The UK is the fourth largest • Legislation guaranteeing juridical security, investor in Panama with more than US$ fiscal and tax incentives for investors 3.3 billion holdings. Exports of UK goods to • Economic stability, with record low inflation Panama were £262 million in services and and sustained economic growth £134 million in 2016. Peru is a growing market of opportunity for UK companies across a wide • Strategically located on the major world range of sectors. It is the world’s third largest producer of copper, zinc and shipping route provided by the Panama Canal Market Detail • A hub for air travel silver and whilst, historically, its development has lagged behind other • One of the best countries for regional markets, GDP is set to grow by 3.8% in 2019; growth is currently Panama has experienced tremendous telecommunications connectivity in the world 2.5%. The UK is the second largest foreign investor in Peru. economic growth for the past decade. • Low unemployment rate of under 6% The economy grew by an average of 8.3% annually from 2004 to 2013. During 2009 Market Detail • The EU-Peru Free Trade Agreement and despite the global downturn, the Opportunities in Panama for UK currently enables most UK products to economy continued to grow at 3.9%. GDP companies: enter the country duty free Over the past decade, Peru has been the growth for 2017 was 5.4%. • A stable democratic political system fastest growing economy in Latin America • Infrastructure with a 5.5% average annual growth rate, • a young growing middle class • Energy exhibiting the region’s second lowest inflation • A huge pipeline of over £120 billion in rate at 3.6%. • Agriculture infrastructure projects up to 2025 • Education • Host to the largest mining companies in the Peru is the third largest market in Latin • Marine world due to its significant copper mines America. Favourable external market • Security and related industry conditions such as commodity prices, prudent macroeconomic policies and • A tradition of stability, prudent economic effective structural reforms have boosted policies and structural reforms. Peru into middle-income country status. Panama City, Panama Opportunities in Peru for UK UK businesses exporting to companies: Peru will find: • Mining • One of the fastest growing economies in • Infrastructure the region • Strong free trade policy 40 Opportunities for UK companies in Latin America and the Caribbean Opportunities for UK companies in Latin America and the Caribbean 41

Trinidad & Tobago Uruguay

Uruguay is one of the most In 2017, the UK exported £136 million worth of Trinidad and Tobago has one of the highest Foreign Direct Investment goods to Uruguay. The main exported products (FDI) rates in Latin America and the Caribbean. It is the largest market politically stable countries in to Uruguay were crude oil, alcoholic beverages, in the Caribbean Community (CARICOM). About 400 multinational Latin America. It is known for vehicles, chemical products and machinery. organisations have physical offices in Trinidad and Tobago. This includes its egalitarian society, for its over 50 British companies. high income per capita and for UK companies exporting to the steady economic growth it Uruguay will find: has enjoyed in the last 15 years, Market Detail which has averaged 4.5%. • European oriented culture and business Trinidad & Tobago practices More than 150 years in oil and gas Uruguay was categorized as a high-income • Hub assets has helped establish Trinidad and country by the World Bank in 2013 and in • High complementarity trade index with the UK Tobago as a strong economy. 2017 its GDP reached US$56.157 billion. The country is positioned at the top of the • Electronic and user friendly trade platforms The country’s economic policies favour trade Prosperity, Political Stability, Transparency • Incentives for Foreign Direct Investment liberalisation and foreign investment. Trinidad and Low Corruption Rankings in Latin & Tobago has bilateral agreements and America. • English spoken broadly Memoranda of Understanding (MOU) between Trinidad & Tobago and the UK, these are: • Political, economic and social stability Market Detail • Gateway to the region • Double taxation agreement • Investment treaty for the promotion Uruguay is a small and yet reliable and Opportunities in Uruguay for UK and protection of investments pilot-prone base; often a regional base • Information and Communications facilitating the entry of foreign goods and companies: Technology (ICT) MOU services to the wider region. Its continued • Healthcare sector MOU growth performance has been driven by the • Agritech • Security co-operation MOU increase in private consumption and growing international trade. Its largest trading • Pharmaceutical industry partners are China, Brazil and the EU. • Food & Drink UK companies exporting to • Information and Communication Technology Trinidad & Tobago will find: The country is a founding member of Mercosur and supports international • Financial and Business support services • Regional manufacturing hub and a integration through the promotion of trade • Infrastructure gateway to South and North America agreements. • Educated and skilled, English speaking workforce • Legislation is based on UK common law • Regulated financial system In 2017 the UK • Largest Gross Domestic Product (GDP) in the English speaking Caribbean and second exported £136 largest in Latin America and the Caribbean million to Uruguay. • Ranked first for FDI cost-effectiveness amongst Caribbean and Central Opportunities in Trinidad & American countries in its peer group (out of 29 countries) Tobago for UK companies: • Good transportation and communication links • Energy • Low energy costs • Healthcare Historic architecture in Montevideo, • Highly developed industrial, • Security & Defence Uruguay energy and steel sectors 42 Opportunities for UK companies in Latin America and the Caribbean

In 2015 the UK exported £337 million in goods and services to Venezuela.

Santiago de León de Caracas, Venezuela

Venezuela

Venezuela is the 6th largest Market Detail country in Latin America and the 7th largest economy in Latin Oil and gas is one of the most significant sectors in Venezuela. It has the world’s largest America & the Caribbean with a oil reserves and the largest proven natural gas nominal GDP of $US210.1 billion. reserves in Latin America. Due to its geology, The UK exported £337 million in Venezuela is rich in mineral deposits (especially in the south of the country). Key factors for goods and services to Venezuela UK business to factor in when considering in 2015. exporting to Venezuela: most goods attract low import tariffs and there is demand for high Several major UK companies do business in quality goods and services. Manufacturing in Venezuela including Aggreko, AstraZeneca, Venezuela benefits from low energy costs. It British American Tobacco, De La Rue, Diageo, has highly developed industrial, energy and GSK, Norton Rose Fulbright, PWC and Shell. steel sectors.

Recognising that the political crisis has made it difficult for some companies to invest and operate in Venezuela, in the longer term, the market will offer significant potential to UK businesses. 44

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DIT The UK’s Department for International Trade (DIT) helps businesses export, drives inward and outward investment, negotiates market access and trade deals, and champions free trade. Disclaimer Whereas every effort has been made to ensure that the information in this document is accurate the Department for International Trade does not accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Production The paper in this document is made from 50 per cent recycled waste pulp with 50 per cent pulp from well-managed forests. This is a combination of totally chlorine free and elemental chlorine free. The inks are vegetable oil-based and contain resins from plants/trees and the laminate on the cover is sustainable, compostable and can be recycled. © Crown copyright 2019 You may re-use this publication (not including logos) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence visit: www.nationalarchives.gov.uk/doc/open-government-licence or e-mail: [email protected] Where we have identified any third party copyright information in the material that you wish to use, you will need to obtain permission from the copyright holder(s) concerned.

Published March 2019 by Department for International Trade.