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South America
South America has experienced growth in the last two decades, with tourism a significant source of its income.
Twelve countries make up South America: Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Guyana, Paraguay, Peru, Suriname, Uruguay, and Venezuela.
Brazil is the largest country in South America and has the largest economy.
South America exports coffee, sugar cane, bananas and cocoa. It’s main imports are machinery and construction materials. Its largest trading partners are the US and China, and it is a member of the following treaties: NAFTA (Colombia), proposed FTAA (Free Trade Area of the Americas), Mercosur, and Chile-US Free Trade Agreement.
The markets of South America are attractive, but, in our experience difficult - despite the Mercosur economic and political agreement. Brazil has a population of more than 200 million, but their gross domestic product per capita averages at $10,800 - so the individuals don't have a lot to spend on imported consumer goods. Most people know that, unlike most of Central and South America, Brazilians speak Portuguese and not Spanish, but did you know that Brazilian television series and movies are often shown with sub-titles in Portugal?
The big challenge for a UK SME is from where to address the markets of South America. A business executive from Buenos Aires will almost certainly not travel to meet you in Santiago. And you might even have trouble getting a Cariocan (inhabitant of Rio de Janeiro) to make a trip to Sao Paulo to talk business with you. In our experience, one place no South American will mind visiting (it costs the same for you to pay their fare as it would for you to travel to them - less actually because you save the travel time) is Florida.
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