Latin American foreign trade analysis

Due to the shrinking trend of orders from Europe and the United States, emerging markets in South America have become the focus of Chinese export and foreign trade companies in recent years. Many Chinese suppliers have already extended their tentacles to South America, trying to find new support for business growth outside the traditional European and American markets. However, the South American market is dominated by developing countries. The business environment, national characteristics, trade convenience, and even language, etc., may become obstacles for suppliers to develop this market. At the Shantou Station of "Successful Future Export Forum", Ms. Adriana Marcela Rey Sanchez, Business Consulting Co., Ltd. of the Latin American Department of Hong Kong Chen Huang Zhong Cai Accounting Firm, gave a speech titled "Latin America Market Analysis and Market Strategy".

Ms. Adriana Marcela Rey Sanchez, originally from Colombia, manages all aspects of the Latin Division and provides consulting services to Latin American companies to help them develop their businesses in Hong Kong and China. She understands the development needs of Latin American companies and provides professional advice to different clients. In recent years, as the trade between China and Latin American countries has gradually increased, the Latin Department is committed to assisting international companies to go global, especially in emerging markets in Latin America.

Adriana Marcela Rey Sanchez: What I'm going to tell you today is the situation in countries like the Pacific Alliance and Brazil. In today's speech, I will introduce you to the concept of the Pacific Alliance, as well as the data of various countries included in the Pacific Alliance and Brazil, as well as the customs and consumption characteristics of these countries, so as to help you formulate a market development aspect. Strategy.

Maybe you are not familiar with the concept of Latin America. In fact, it is not a country or a state, but a collection of countries in this region. The De River is located in Mexico and extends directly to the country of Chile. It is also located between the Pacific Ocean and the Atlantic Ocean. The Pacific Ocean and the Atlantic Ocean are very important to us, especially the Pacific Ocean is very close to Asia. The Asia-Pacific region is our very important target. market.

In order to give you a conceptual introduction, we can introduce the GDP of these countries. In the GDP comparison, we see that Chile, Brazil, Mexico, and Panama are in the top four. Chile stands out because Chile is a country There is a lot of investment in many industries, such as the mining industry and R&D investment. Its R&D investment accounts for a very high proportion like Brazil and Mexico. At the same time, Chile also attaches great importance to education. Because they focus on education, their production efficiency is quite high. At the same time, Colombia and Peru are also two places that many investors are very concerned about, because the agricultural and textile industries in these two places are very strong.

Next, let's look at data such as GNI, which shows the country's potential level of internationalization. In this data, we see Chile in the first place, followed by Panama. In this chart we see that the consumption level in Brazil is very high, the reason is because Brazil has very high income, so they have considerable purchasing power, and the domestic market demand is also quite large.

Next, I would like to introduce the Pacific Alliance. The Pacific Alliance was established on June 6, 2012 and consists of four countries: Mexico, Colombia, Peru and Chile. The aim is to circulate freely within these countries, allowing the circulation of our products, services, talent and capital, while integrating economic and political aspects of the region. As we can see on the PPT, this region accounts for 36% of Latin America's population, and has a GDP of more than 2 billion US dollars, accounting for 50% of Latin America's trade with the world. At the same time, it is located in the Pacific region, so with the The Asia-Pacific region and the Asian region can achieve more trade exchanges. We see that this area is visa-free for 180 days, so people can travel freely in this area, and we are also committed to developing e-commerce, and we are also committed to investing in negotiating cross-border trade services, financial services, telecommunications, air transportation and shipping services, It is also committed to market integration in this region and other third parties, especially with the Asia Pacific region.

Next we discuss the characteristics of each country.

The first country is Mexico, which is the fifth largest economy in the world and the second largest consumer Signed a free trade agreement, such as Canada, the United States, Israel, and it is also negotiating the signing of a free trade agreement with China, and has an agreement with China to exempt bilateral taxation. In terms of the distribution of consumption levels in Mexico, we can see that the northern region is an agglomeration of wealthy people, while the south is an agglomeration of poor people. The middle part is Mexico City, where the capital is located. This place has a population of 23 million, accounting for 30% of global GDP, has the most saturated market. Mexico, because of its geographical location is very close to the United States, more often follows the American way of life, so they are more consistent with the United States and are more sensitive to prices.

Then I will introduce that the country I come from is Colombia. First of all, I would like to ask you a small question, do you know how Colombia is spelled? First of all, I emphasize that everyone must spell the name of our country correctly. It is CLO instead of CLU. Some people have different impressions of Colombia. For example, it is rich in coffee, and the crime rate of drugs is relatively high. There is more information I would like to introduce to you. There are several major characteristics in Colombia: First, it is classified as one of the six emerging civet countries, namely Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa. Why are these countries listed as emerging civet countries? With a high growth rate, it is ranked second in Latin America and sixth in the Investor Protection Index, after New Zealand, Singapore and Hong Kong, which are ranked first, second and third respectively; at the same time, we also We have signed 12 free trade agreements with the following countries, including Canada, South Korea, etc. At the same time, we also hope to sign free trade agreements with China. During the 2008 financial crisis in Latin America, the GDP of developed countries was in a downward trend, but in 2009 Chile's GDP growth rate was 2%. Our largest trading partner is the United States, which accounts for 27.8% of our imports, ranking No. 1 In second place is China with 16% of the data. This country has strong economic, political, and trade integration capabilities, so we can give priority to reaching 1.5 billion consumer groups, and in the future Colombia will hopefully become the second most attractive investment destination in Latin America.

Our country has a high percentage of upper-income people, so the population is 45 million consumers who are looking for more innovative and high-tech products. Why do they go after such a product? Because there are many leading retailers in our country who have access to local traders and foreign traders, they have a lot of options.

Our consumption characteristics in Colombia are like this, most of our income is spent on food and beverages, occupying the first place; second is housing, Colombia tends to have their own home; third Transportation accounts for a larger proportion of consumption. Because our public transportation system is not particularly good, we are more inclined to buy our own cars.

The following three countries are our important partners, namely China, Mexico and the United States, exporting consumer goods from China this year accounted for 19.5% of all Colombian imports.

Next, I will introduce the situation of Chile. The country's GDP growth rate has remained at 5.2%, which has been the case for the past ten years. The country's GDP growth rate is very stable, and it is one of the most prosperous countries in South America. It is also the seventh largest economy in the world and the freest country in Latin America. It has signed free trade agreements with 12 countries. It is also the first country in Latin America to sign a free trade agreement with China. We see that there are three very important rankings. The first ranking is that its business environment index is 37th, and its corruption perception index is 20th. The ranking is also quite good, because we know that Chile is the freest economy in the world. body country. We see that it has free trade agreements with 60 countries covering 63% of the global population.

A brief introduction to the trade agreement signed between Chile and China, which was signed in 2005. The main goal is to increase trade exchanges between the two countries and strengthen exchanges in economy, SME, culture, investment, education, science and technology, and environmental protection. . We signed a free trade agreement with Hong Kong in 2012. Our main results are that 88% of these products from Hong Kong are tax-free, and Hong Kong can also freely obtain these products exported from Chile.

Next, I will introduce to you what kind of products Chilean consumers want to buy. They have a high demand for electronic products, such as IT products, tablet and telecommunications related products, and mobile phones. They not only focus on Good quality and at the same time they are very concerned about good value for money. Because of their increasing income, they are more inclined to spend, and they are very willing to spend on fashion products. 78% of toys come from China.

Next, let's discuss the situation in Peru. In 2012, Peru's GDP reached the highest level, at 6.3%, indicating that they were the country with the best recovery in the global economic crisis. The country's main economic activities are agriculture, fishing, mining and textile manufacturing. They have also signed free trade agreements with 15 countries, and in 2009 signed a free trade agreement with China. Their consumption expenditure is similar to Colombia. The largest expenditure is still on food and beverages, the second largest expenditure is transportation, and the third largest expenditure is education. They are also very willing to spend on non-essentials, they are very familiar with global brands, and they are very concerned about quality. People in this country are very focused on their textile and service industries, where they are very demanding. Peru is a country with a large culture. The capital Lima has the second largest Japanese settlement in the country, after Sao Paulo. It is also influenced by Chinese and Japanese culture, so they have a great demand for seafood and oriental spice ingredients. We can see a graph of monthly income in this country, 36% of people earn $250 a month, and then 10% earn more than $960.

The last country is Brazil. Brazil is the sixth largest economy in the world. It is also one of the five BRIC countries. The other countries are Russia, China, India and South Africa. In the past year, its GDP growth rate has declined, mainly due to the decrease in dependence on exports, the decrease in domestic demand, and the slowdown in the inflow of foreign capital. But our expectations for Brazil for the next few years and next year are relatively good, and growth will pick up, in 2016 Brazil will host the Summer Olympics, and the middle-income middle class in this country accounts for 55% of the entire population. The consumption characteristics of this country are like this. Ferrari has the highest sales in Brazil in the world, especially in Sao Paulo. I also said that Sao Paulo is a very important city, and the most profitable Louis Vuitton store in the world is also in Sao Paulo. Sao Paulo is the world's largest. The only city in the world with 4 Tiffany stores.

Next, I'll show you how to do business with people in Latin America. The first one is that we build trust, which is based on knowing each other. Next, we are not so fast in making decisions, especially when doing major business transactions, we need to analyze, and we need to communicate more before we can make a decision. When doing business, we should pay attention to contact with the highest level of the other party. At the same time, there are many family businesses in this country, so this kind of business has the characteristics of being passed down from generation to generation. In order to avoid language barriers, it is necessary to communicate effectively as soon as possible, and we can cooperate with import agents. We also pay special attention to service and mutual connection in our personal communication, so we are also more inclined to professional and personal contact. Then everyone should also remember that we will bargain, so it is best to be mentally prepared after your first quotation, and prepare a variety of options, so as to help you reach such a deal.

Next, I will introduce the comparison of the ease of cross-border trade, and analyze it from the perspective of market access, border relations, transportation and communication, and business environment. Chile ranks first among these countries, and it ranks very high in the markets of Chile and Peru, Mexico is making great improvements in the business environment, and Brazil has a very large market with a lot of diversity, so Entering this market may be different from other markets. In Colombia we are improving our border management and our transport and communications infrastructure.

The next PPT will introduce data on the documents required for import, the number of days required, etc. Here you will see that the number of days is relatively average. For example, the number of days required for import is 16 days, and the number of documents required in these countries does not exceed 10. The cost of importing in Mexico, Colombia, and Brazil is relatively high. . In Latin America we have very large retailers located in these countries, and we see Carrefour, Wal-Mart, and some retail giants like electrical stores and Mexican home appliance chains. The situation of these countries that I just introduced to you, you can make strategic formulations based on these situations.

The next situation of CWCC is the situation of Chen Huang Zhong Cai Accounting Firm. Our company has a history of 27 years, mainly located in major cities in mainland China, providing business consulting, audit accounting, taxation and company secretarial services. In 2006, Mr. Huang Huasheng (voice), one of our CWCC partners, established the Latin Department and is the founder of the Latin Department. At the same time we expanded our business in Latin America, including the Spanish and Italian markets, while also helping to expand in similar countries in Europe. Our company helps to expand our business in China, and also expands the business of other countries' trade with China. We also manage risks. Although it is a Chinese company, it also has a lot of Latino employees. He can help us reduce The language barrier helps us communicate further. Everyone should know that we are the only accounting firm in Hong Kong and the only professional accounting firm with a Latin department.

In recent years, the trade between China and Latin America has become stronger and stronger, so I believe that people who have such needs will need more professional guidance and help, which is why we established the Latin Department. Here we see our company team, we have some team members from Mexico, Brazil, as well as colleagues from Peru, Spain, I am from Colombia, we also have three colleagues from China, they can also speak Spanish, Our network also covers trade promotion associations, banks, and law firms in many countries, so that we can help you and related countries to conduct trade and business transactions.