Member Article

Latin America is open for business, says UKTI

Political reforms are opening up Latin American countries for business, UK Trade & Investment (UKTI) experts told a London audience last week.

Dozens of London entrepreneurs and business representatives gathered in London to hear Latin America experts and UKTI representatives discuss doing business in the region. Sponsored by Santander and part of the Government’s Exporting is GREAT campaign, the full-day event was open to any London business looking for specific Latin America-based opportunities in healthcare, education, oil and gas, marine, infrastructure, financial services, automotive or mining.

Parveen Thornhill, UKTI’s Regional Director for London, said new business opportunities are emerging in Latin America. “It is a really exciting market for exporters to consider. We’ve seen political reforms open up a range of opportunities for London businesses. From Cuba’s newly restored diplomatic ties with the United States, to Equador’s free trade agreement with the European Union, it’s clear that Latin America is open for business.”

“We’ve also seen Mexico become a more attractive market for exports. Its economy is expanding and a new legal framework has improved the conditions for investment in oil and gas. The Argentine government has continued to liberalise trade and is pursuing major investment plans in infrastructure and natural resources. Even Colombia and Venezuela, with improved business confidence and new emerging opportunities, are increasingly opening up – and British goods and services are in particularly high demand.”

As a result, it’s getting easier to do business in Latin America. Pacific Alliance countries, for example, are in the top 30% in the World Bank Ease of Doing Business index. Brazil, Mexico, Chile, Colombia, Ecuador, Bolivia, Costa Rica, Dominican Republic and Guatemala have improved their safety indices in recent years, whilst corruption indices have remained steady or improved in a number of countries.

One of the companies that benefitted from greater access to the Latin American market, and from advice and introductions from UKTI, is the Hackney-based MLM. The construction business specialising in engineering and environmental consultancy started working with UKTI in 2010, when it joined a trade mission to Rio de Janeiro and São Paulo.

“With major projects such as the World Cup in 2014 and the Olympic Games in 2016, as well as significant government housing and infrastructure initiatives, we saw demand for our expertise, especially in sustainability. UKTI’s invitation came at exactly the right time, offering us the opportunity to put our feet on the ground, to research the country and local market, and to meet potential Brazilian partners and clients, with the support of UKTI’s teams in London and São Paulo,” said Chris Neeves, Director at MLM.

In the months following the trade mission MLM visited Brazil six times, frequently consulting with the UKTI team in São Paulo about its plans and participating in local networking events. The company learned more about the market, built a network of contacts and decided it was ready to expand into Brazil.

MLM reached an informal joint venture agreement in September 2011, which was formalised six months later, 15 months after first visiting Brazil. The joint venture formed by MLM and its local partner, soon secured its first contract for sustainability services in the construction sector. By 2014, the Brazilian subsidiary completed a number of similar projects and now has a growing pipeline of opportunities in the Brazilian property and construction sectors.

“Thanks to UKTI, we met our Brazilian partner and have an established joint venture in Brazil in time for our 50th year. We are now engaged in multi-billion dollar developments around the world that will help sustain our international aspirations for the foreseeable future,” Neeves continued.

Mauricio Munguia, Latin Desk Director at Santander Corporate and Commercial Banking, said: “Santander’s participation in the UKTI Roadshow event reflects its long-standing support for exports between the UK and Latin America. With an ever increasing openness to trade, we believe that the opportunities in Latin America for both London-based businesses and those further afield are vast. Despite the challenges, there are several innovative and dynamic markets worth considering and we have seen a lot of success stories.”

This was posted in Bdaily's Members' News section by UKTI London .