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latin america is the hottest market in the world. it is becoming the world's fastest growing region. A lot of this is due to the economic boom and falling trade barriers which have brought an overwhelming demand for all types of services and products. (table 1 is a detailed list of commodities and their distribution throughout Latin America) Latin America has been called "one of the worlds most dynamic emerging markets." It has a GDP of $1.3 trillion and a population of over 500 million - this combined with a more successful economic collaboration among countries in the region has made it possible for it to become a significant global force. The U.S. considers trade with Latin America and the Caribbean to be one of the bright spots in their global trade relations, especially as a 20 percent increase in 1995 of U.S. exports to Latin America and the Caribbean conclusively disproved the ideas of some that the Mexican Peso crisis would cause a decline in trade growth in the Americas and hinder their developing economies. In 1995 the U.S. increased its trade surplus to Latin America to a $7.5 billion surplus, an increase of 152 percent from its 1994 $3 billion trade surplus. Creation of a Free Trade Area of the Americas (FTAA) by the year 2005, which was a major goal of the Summit of the Americas held in Miami in 1994, has enhanced interest throughout the Americas in open markets and accelerated the momentum for expanded free trade. 1995 was a record year for exports to Latin America and the Caribbean. Exports to South America increased by 23 percent, to the Caribbean by 15 percent, and to Central America by 12 percent. In 1995, leading U.S. exports to Latin America and the Caribbean included high-value products such as parts for derricks, fork lifts, cranes etc. (machinery parts) and these have shown consistent, strong increases in the past four years. Florida accounts for approximately 50 percent of all U.S. trade with Central America and the Caribbean and 28 percent of all U.S. trade with South America. Hundreds of U.S. and foreign multinationals with Latin American interests are headquartered in Florida. Multinationals are also in Florida to monitor, manage, and market their products or services. Latin America and the Caribbean represent a market of more than 500 million people. These areas have a growing middle class whose rising incomes are being spent on imported goods and outside services -- despite high tariffs or other trade barriers which will eventually be reduced with the increase in trade agreements and open markets. All these factors together will bring the Western Hemisphere as a whole closer than ever before to regional economic integration. The building of strong and productive hemispheric ties relies on each nation's success in expanding their economic productivity and growth. Every country will benefit from more cooperative hemispheric relations. By integrating their economies, the nations of the Americas can more rapidly expand trade and investment flows, build more competitive business sectors, and achieve higher rates of sustained growth. Tables 2 and 3 show the exports and imports between Latin America and the Caribbean and the U.S., while Table 4 shows the trade balance between them. These charts show that the trade balance is almost equal showing that there is reciprocal interest in an open trade. |
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