UK businesses are currently facing a critical time, particularly those that trade overseas, as they are looking to new markets to combat the challenges of Brexit. Many proactive companies are turning to the high growth markets of Asia, Latin America, and India, where there is a growing demand for new technologies, unique brands, and innovative solutions.
There has been a considerable effort to strengthen the trading relationship between the UK and Latin America. Historically, there were close economic ties between the two regions in the mid-1800s, evidenced by the involvement of British miners in the development of mines and the infrastructure and railways that crossed the continent. However, trade between the UK and Latin America declined after the First World War, and UK companies focused on US and European markets. In recent years, there have been concerted efforts to reverse this trend, with Ministerial visits and high-level Trade Missions. The appointment of the UK’s Trade Commissioner to Latin America and the Caribbean in 2017 further emphasized the commitment to enhancing trade relationships.
UK companies often have outdated perceptions of trading in Latin America. Many businesses, experienced in trading overseas, may have avoided Latin America due to concerns about security or a lack of knowledge about the opportunities. However, those who visit the region are often impressed by the economic development and the demand for British products and services. While it may take some time to see a return on investment, companies that persistently follow up on their meetings usually see results. It’s important to note that one size does not fit all when it comes to doing business in Latin America, as each market has its own unique characteristics and culture.
Latin America presents various business opportunities across traditional industries such as mining, oil and gas, as well as newer sectors like life sciences, renewable energy, and the marine industry. UK companies have expertise in areas such as offshore energy development and advanced engineering, which are in high demand in the region. Additionally, there is potential for the aerospace industry to grow in Latin America, requiring training and quality control for higher-tech components.
The future of trade relations between the UK and Latin America looks promising. The appointment of the UK’s Trade Commissioner and improved market conditions have contributed to the growing interest and trade between the two regions. However, there are still challenges and trade policy barriers that need to be addressed. UK companies with distinctive brands, unique technology, or specialized services have seen significant success in Latin America, and there is a vast potential for international companies to establish themselves in the region.
Overall, businesses looking to enter the Latin American market can benefit from the support and services provided by organizations like Business West and Biz Latin Hub, which offer market entry and back-office support. It’s important to consult professionals and stay updated on the evolving regulatory landscape to ensure long-term success in the region.
