Dueling is Still Legal in Paraguay.

Latin America Update: March 14, 2012

However, duels can only take place between two people, the duel must be registered with the authorities, there has to be medical staff on hand, and participants must be registered blood donors.

China Replaces the US as Peru’s Top Export Market

Two years after signing a bi-lateral free trade agreement with Peru, China replaces the United States as the top market for Peruvian exports (led by Mining and Fisheries). The US remains the leader for Peruvian imports, followed closely by China.

Inter-American Development Bank (IBD) Board of Governors to Converge on Montevideo

Murcadom President Jock Chamberlain will be in attendance when the Inter-American Development Bank (IDB) holds its annual meeting next week in Montevideo, Uruguay.

The largest source of development financing for Latin America and the Caribbean, the IDB is made up of 48 shareholders and includes 26 Latin American and Caribbean member states.

Peruvian Delegation to Ring Opening Bell at NYSE

Latin America Update: March 8, 2012

Peruvian Delegation to Ring Opening Bell at NYSE

The second annual Peru Day will be held tomorrow, March 9th at the New York Stock Exchange with the participation of senior officials of the Peruvian Government and leaders of the Peruvian private sector.  Peru’s robust growth makes it a leading investment option in Latin America.

Chinese Firm Kickstarts Dormant Mining Industry in Ecuador with $1.5 Billion USD

China’s Ecuacorriente S.A. signed a 25-year agreement to operate an open-pit copper mine and make a $1.5 billion USD investment in Ecuador.  Mining contracts in Ecuador require a 52% royalty on profits and this precedent-setting agreement includes a $100 Million USD advance royalty payment to the Government of Ecuador.   Kinross (Canada) and International Minerals Corporation (US) are currently negotiating similar agreements with Ecuador.

Chile to Invest $4.3 Billion USD in Copper Mining During 2012

Chile’s state-run mining company will invest a record $4.3 billion USD this year to expand copper mining operations.  The 16,000 employees of La Corporación de Cobre de Chile (Codelco) are expected to produce approximately 1.7 million tons of copper or 30% of Chile’s yearly output.

Mexican Carlos Slim Tops Forbes List of Billionaires

Carlos Slim, the chairman of Mexican telecommunications conglomerate Telmex is worth about $69 billion USD. Telmex and its associated companies are active throughout Latin America.

Mexico Prepares for G-20 Summit in June

Latin America Update: February 22, 2012
G20 Mexico

Mexico Prepares for the G-20 Summit in June

Mexican President Felipe Calderón met this week with representatives from G-20 nations in preparation for the annual summit to be hosted by Mexico in Los Cabos this June (the first G-20 summit in Latin America). The G-20 is potentially the most influential association of finance ministers from 19 major global economies plus the European Union. G-20 economies account for more than 80 percent of global trade and represent two thirds of the global population.

Construction of Subway in Lima, Peru

Peruvian President Ollanta Humala announced the construction of Lima’s first underground train system. Over 30 kilometers of construction is expected to cost $2 Billion USD. The system will be operational within 6 to 10 years.

Colombia to Triple Infrastructure Investments

Colombia has an immediate need of $20 Billion USD worth of highway infrastructure development to support economic expansion. The government has pledged to triple infrastructure investment to 3% of GDP by 2014.

US & Mexico Sign Deep Water Oil Deal

The agreement lifts the moratorium on oil and gas exploration in the 1.5 million acre trans-boundary region of the Gulf of Mexico.

 

Community of Latin American and Caribbean States CELAC

Latin America Update: January 4, 2012

CELAC

2012: Year of Regional Integration

Loosely based on the European model, the nations of Latin America continue an agenda of regional integration. The newly formed Community of Latin American and Caribbean States (Comunidad de Estados Latinoamericanos y Caribeños, CELAC) consists of 33 sovereign countries in the Americas, and totals roughly 600 million people (excluding the United States and Canada).  Chilean President Sebastián Piñera is the President pro tempore of CELAC and the 2012 conference will take place in Chile (July).  The Organization of American States (which does include the US and Canada) will hold its annual assembly this year in Cochabamba, Bolivia (June). I need to plan my flights.

Equity Markets in Latin America

Colombia, Chile, and Perú will operate a unified stock market starting in May of 2012.  Mexico has signed a letter of intent to join this integrated market called MILA (Mercado Integrado Latinoamericano).

Growth Expectations for 2012

Latin American economies will grow approximately 4% in 2012 led by Panama, Peru, Colombia, Uruguay, Chile, Brazil, and Mexico.

2012 Presidential Elections

Venezuela, Mexico, and the Dominican Republic will all choose new leaders this year.

Too bad the pilgrims didn’t drink wine

Chile has been making wine for over 490 years; 75 years before the Pilgrims landed at Plymouth Rock. Chile is the fifth largest exporting country in the world with 4.3% of the market share (ahead of the US).

Raining Fish in Honduras

 Latin America Update: December 21, 2011

It’s Raining Fish in Honduras

Raining Fish

Image: boingboing.net

Legend has it that it rains fish in Honduras. It’s rumored that this phenomenon has been occurring for more than a century on a yearly basis between May and July. Dark clouds appear followed by heavy rain and hundreds of living fish on the ground. Beats paying $27.95 at Red Lobster.

Peru Gets Ready for 2012

Seven (7) free trade agreements signed by Peru with the European Union, Japan, Thailand, Mexico, Panama, Guatemala and Costa Rica will take effect in 2012.

Paraguay Blocks Venezuela’s Acceptance into Mercosur

Paraguay (pop 6.4M) continues to block Venezuela’s acceptance into Mercosur citing anti-democratic policies of the nation led by Hugo Chavez. Mercosur (Southern Common Market) is an economic and political agreement promoting free trade among Argentina, Brazil, Paraguay and Uruguay.

Record Q3 Growth in Colombia

Internal consumption, mining, construction, private & public spending, and foreign investment are responsible for some of the best economic growth data seen in Colombia during the past 4 years.

 

Latin America and the Global Corruption Index

Latin America Update: December 7, 2011

Global Corruption Index

Chile is the least corrupt country in the Americas according to Transparency International’s 2011 Corruption Perception Index. Chile (Rank 22) is considered even less corrupt than the United States (Rank 24), Uruguay (Rank 25), and much less corrupt than Venezuela (Rank 172).

GDP Growth Rates

Latin America is expected to grow 4.4% for 2011. Peru experienced a 6.5% GDP growth rate in Q3 2011 vs. 2% in the United States.

Did you know?

Bolivia which boasts one of the smallest GDP’s in Latin America ($19.3 Billion USD) has the largest natural reserve of lithium in the world. Soon you’ll be seeing descendants of the Incas driving Rolls-Royces.

Ollanta Humala defeats Keiko Fujimori

Latin America Update: June 22, 2011

POLITICS:

(1) Ollanta Humala defeated Keiko Fujimori in Peru’s presidential elections. Although a close race, polls indicate a 70% approval rating for President-Elect Humala. Despite media headlines to the contrary, data indicates that Ollanta Humala will not follow the political path of Venezuela’s president Hugo Chavez. (2) Honduran President Porfirio Lobo accepted the return of exiled Honduran leader Manuel Zelaya days before the Organization of American States (OAS) voted to allow Honduras to resume its participation in the organization. (3) Cuban President Raul Castro turned 80 this month and publicly expressed his concern regarding the availability of a successor who will continue the socialist “revolution.”

ECONOMICS:

(1) China is aggressively locking down commodities around Latin America through large loans, investments and other financial arrangements. At the same time, Chinese companies have secured a decade’s worth of oil from Venezuela and Brazil, as well as steady supplies of wheat, soybeans and natural gas from Argentina. (2) The airline merger between TAM (Brazil) and LAN (Chile) could be delayed until March of 2012; the merger will create one of the world’s largest airlines. (3) Brazil celebrates that, “for the first time in history,” it’s risk of default within the Credit Default Swap (CDS) marketplace is less than the United States. (4) Claro, a unit of América Móvil owned by Mexican Carlos Slim (the world’s richest man), said that it will invest $1 billion in Peru over three years — the first major investment announced by a foreign firm since Ollanta Humala won the presidency.

Export to Peru

Peru Map

Population:  29.5 Million
Total Imports $20.3 Billion
US Imports $6.2 Billion (31%)

Peru is a Latin America county with a population of 29 Million, centrally located on the Western coast of South America.  Peru is among the economic stars of South America, and with a robust economy, shows good prospect for future economic growth and expansion.

 

Ideal Products for Export to Peru

  • Mining Industry Equipment
  • Plastic Materials and Resins
  • Construction Equipment
  • Industrial Chemicals
  • Oil and Gas Field Machinery
  • Pumps, Valves and Compressors
  • Pollution Control Equipment
  • Air Conditioning and Refrigeration Equipment
  • Computers and Peripherals
  • Security and Safety Equipment