{"id":7062,"date":"2021-11-30T08:21:15","date_gmt":"2021-11-30T13:21:15","guid":{"rendered":"https:\/\/www.goexport.ca\/?p=7062"},"modified":"2021-12-22T15:22:53","modified_gmt":"2021-12-22T20:22:53","slug":"exporting-to-latin-america-our-8-tips-for-success","status":"publish","type":"post","link":"https:\/\/www.goexport.ca\/en\/exporting-to-latin-america-our-8-tips-for-success\/","title":{"rendered":"Exporting to Latin America: Our 8 Tips for Success"},"content":{"rendered":"[blank_spacer height=”30px” width=”1\/1″ el_position=”first last”] [spb_text_block pb_margin_bottom=”no” pb_border_bottom=”no” width=”1\/1″ el_position=”first last”]\n

From Mexico to Brazil to Panama to Colombia, companies around the world are curious about exploring Latin American markets. With such tantalizing growth rates, these markets attract business leaders from around the world who are ready to work hard to stand out.<\/h3>\n

In order to increase your chances of success when exporting to Latin America, GoExport\u2019s team shares 8 expert tips to help you on the ground.<\/h3>\n[\/spb_text_block] [blank_spacer height=”30px” width=”1\/1″ el_position=”first last”] [spb_text_block pb_margin_bottom=”no” pb_border_bottom=”no” width=”1\/1″ el_position=”first last”]\n

1. Analyze the region\u2019s potential <\/strong><\/span><\/h1>\n[\/spb_text_block] [spb_text_block pb_margin_bottom=”no” pb_border_bottom=”no” width=”1\/1″ el_position=”first last”]\n

Whether your company is Canadian or European, before expanding to Mexico or South America, you need to confirm that it makes sense at your company\u2019s stage of development.<\/h3>\n

\u201cIn Latin America, the availability of capital is different. For example, interest rates are much higher,\u201d says Mathieu Alarie, one of GoExport\u2019s founders. Since the market situation is different from what you are familiar with, it\u2019s in your best interest to verify if your project makes sense in this particular context.<\/h3>\n

A personalised market analysis will help you confirm whether or not it\u2019s worth the effort. \u00a0Exporting to Latin America can be very profitable, but you have to be properly prepared.\u00a0<\/strong><\/h3>\n

See our Seven Tips to Export to the United States<\/a><\/h3>\n[\/spb_text_block] [blank_spacer height=”30px” width=”1\/1″ el_position=”first last”] [spb_text_block pb_margin_bottom=”no” pb_border_bottom=”no” width=”1\/1″ el_position=”first last”]\n

2. Choose the best country for your success <\/strong><\/span><\/h1>\n[\/spb_text_block] [spb_text_block pb_margin_bottom=”no” pb_border_bottom=”no” width=”1\/1″ el_position=”first last”]\n

Before you take any concrete steps, you should focus your efforts on choosing a country or region where you want to begin. Latin America is anything but homogeneous, so consider the market potential, including the stability and size of the country you are interested in. Looking at profitability from this angle will help you decide on the right destination for you.<\/h3>\n

According to Mathieu Alarie, Chile and Colombia are amongst the easier countries to approach. Why? Their business practices greatly resemble those of Canada and the United States.<\/h3>\n

If you sell luxury goods, however, you may consider choosing areas of S\u00e3o Paulo,,<\/span> or Mexico City,<\/span> to take advantage of the local concentration of wealth.<\/h3>\n

Import taxes, which vary according to trade agreements between countries, are another factor to consider. In Peru and Colombia, Canadian goods are not subject to import taxes. However, in Brazil, it\u2019s completely different. Consider this right from the get-go to avoid unpleasant surprises.<\/h3>\n[\/spb_text_block] [blank_spacer height=”30px” width=”1\/1″ el_position=”first last”] [spb_text_block pb_margin_bottom=”no” pb_border_bottom=”no” width=”1\/1″ el_position=”first last”]\n

3. Think about compliance <\/strong><\/span><\/h1>\n[\/spb_text_block] [spb_text_block pb_margin_bottom=”no” pb_border_bottom=”no” width=”1\/1″ el_position=”first last”]\n

No matter where you wish to export your products or services, you need to know the steps to take, especially when it comes to compliance. Requirements can change radically depending on the target market and the sector of activity.<\/h3>\n[\/spb_text_block] [blank_spacer height=”30px” width=”1\/1″ el_position=”first last”] [spb_text_block pb_margin_bottom=”no” pb_border_bottom=”no” width=”1\/1″ el_position=”first last”]\n

Customs compliance<\/span><\/h2>\n[\/spb_text_block] [spb_text_block pb_margin_bottom=”no” pb_border_bottom=”no” width=”1\/1″ el_position=”first last”]\n

Customs compliance refers to the standards applied at a country\u2019s border. Which products can be imported? What are the legal requirements for entry?<\/h3>\n[\/spb_text_block] [blank_spacer height=”30px” width=”1\/1″ el_position=”first last”] [spb_text_block pb_margin_bottom=”no” pb_border_bottom=”no” width=”1\/1″ el_position=”first last”]\n

Regulatory compliance <\/span><\/h2>\n[\/spb_text_block] [spb_text_block pb_margin_bottom=”no” pb_border_bottom=”no” width=”1\/1″ el_position=”first last”]\n

This concerns the laws and regulations to respect in order to sell a given product or service in a given country. You must offer goods that comply with market regulations and obtain the permits necessary for your activities.<\/h3>\n

As Latin America is a vast territory with a variety of standards, always be on top of those which apply to your situation.<\/h3>\n[\/spb_text_block] [blank_spacer height=”30px” width=”1\/1″ el_position=”first last”] [spb_text_block pb_margin_bottom=”no” pb_border_bottom=”no” width=”1\/1″ el_position=”first last”]\n

4. Expect currency fluctuations <\/strong><\/span><\/h1>\n[\/spb_text_block] [spb_text_block pb_margin_bottom=”no” pb_border_bottom=”no” width=”1\/1″ el_position=”first last”]\n

When trying your luck in Latin America, keep in mind that there isn\u2019t a single currency as in the European Union. With several exchange rates to consider, you could find it difficult to keep track.\u00a0<\/strong><\/h3>\n

As well, this region is quite volatile. \u201cWe see more currency fluctuations than in either Canada or the United States,\u201d says Mathieu Alarie. This could prove disastrous, for example, if there is an unfavourable value fluctuation of a<\/span> currency between signing a contract and having to make payments.<\/h3>\n

Be careful! Not everyone is a born speculator. \u201cCompanies should work with their bank or a specialized company to develop a strategy that anticipates currency fluctuations and their impact on their business\u201d recommends the Latin American export specialist.<\/h3>\n[\/spb_text_block] [blank_spacer height=”30px” width=”1\/1″ el_position=”first last”] [spb_text_block pb_margin_bottom=”no” pb_border_bottom=”no” width=”1\/1″ el_position=”first last”]\n

5. Get to know your collaborators <\/strong><\/span><\/h1>\n[\/spb_text_block] [spb_text_block pb_margin_bottom=”no” pb_border_bottom=”no” width=”1\/1″ el_position=”first last”]\n

Our experience has convinced us that building relationships with business partners based on trust is essential in Latin America.<\/h3>\n[\/spb_text_block] [blank_spacer height=”30px” width=”1\/1″ el_position=”first last”] [spb_text_block pb_margin_bottom=”no” pb_border_bottom=”no” width=”1\/1″ el_position=”first last”]\n

Tips<\/span><\/h2>\n[\/spb_text_block] [spb_text_block pb_margin_bottom=”no” pb_border_bottom=”no” width=”1\/1″ el_position=”first last”]\n

– If possible, use your contacts to find trustworthy collaborators.<\/h3>\n

– Research your potential contacts and distributors.<\/h3>\n

– Start the relationship off on the right foot from the very first meeting.<\/h3>\n

– Emphasize the personal dimension of the professional relationship.<\/h3>\n

– Visit your partners\u2019 local operations \u00a0(according to COVID-19 restrictions in place).<\/h3>\n

– Demonstrate interest and respect for the local culture, history and food.<\/h3>\n

– Learn a few phrases in Spanish or Portuguese (depending on the country).<\/h3>\n

 <\/p>\n

We would suggest that you develop strong personal relationships with your business partners. In this way you can anticipate problems and minimize their impact over time. \u00a0Friendly business relationships can be very useful in countries where, for example, access to courts is complex.<\/h3>\n[\/spb_text_block] [blank_spacer height=”30px” width=”1\/1″ el_position=”first last”] [spb_text_block pb_margin_bottom=”no” pb_border_bottom=”no” width=”1\/1″ el_position=”first last”]\n

6. Use partnerships <\/strong><\/span><\/h1>\n[\/spb_text_block] [spb_text_block pb_margin_bottom=”no” pb_border_bottom=”no” width=”1\/1″ el_position=”first last”]\n

Depending on the target industry and country, the public sector might be both full of opportunities, and challenges.<\/h3>\n[\/spb_text_block] [blank_spacer height=”30px” width=”1\/1″ el_position=”first last”] [spb_text_block pb_margin_bottom=”no” pb_border_bottom=”no” width=”1\/1″ el_position=”first last”]\n

Example<\/span><\/h2>\n[\/spb_text_block] [spb_text_block pb_margin_bottom=”no” pb_border_bottom=”no” width=”1\/1″ el_position=”first last”]\n

In Mexico, oil exports are managed by Pemex, a state-owned company, and all industry-related business activity must take this into account.<\/h3>\n

Working with a state-owned or semi-state-owned company can be complicated for a foreign company. In order to respond to public tenders, you will benefit from surrounding yourself with local partners who are familiar with the process. What\u2019s more, if you are required to have local market experience, these partners can easily support you.<\/h3>\n[\/spb_text_block] [blank_spacer height=”30px” width=”1\/1″ el_position=”first last”] [spb_text_block pb_margin_bottom=”no” pb_border_bottom=”no” width=”1\/1″ el_position=”first last”]\n

7. Protect your investments<\/strong><\/span><\/h1>\n[\/spb_text_block] [spb_text_block pb_margin_bottom=”no” pb_border_bottom=”no” width=”1\/1″ el_position=”first last”]\n

Trying to crack a new market inevitably has inherent risks for a company. In our opinion, credit insurance is a very interesting tool to temper risk.<\/h3>\n

Offered by organizations such as Export Development Canada (EDC) and the Export-import Bank of the United States (EXIM Bank), this type of business insurance protects you \u00a0against payment defaults. By reimbursing you thousands or even millions of dollars, it can save your company if your clients do not make their payments.<\/h3>\n

Of course, you should also claim full payment from your customers before producing and shipping your products. No matter your choice, however, you will have peace of mind knowing that your customer account is insured.<\/h3>\n[\/spb_text_block] [blank_spacer height=”30px” width=”1\/1″ el_position=”first last”] [spb_text_block pb_margin_bottom=”no” pb_border_bottom=”no” width=”1\/1″ el_position=”first last”]\n

8. Make sure your company is mature enough<\/strong><\/span><\/h1>\n[\/spb_text_block] [spb_text_block pb_margin_bottom=”no” pb_border_bottom=”no” width=”1\/1″ el_position=”first last”]\n

\u201cBefore you start exporting to Latin America, you need to ask yourself if your company is mature enough in its local market,\u201d says Mathieu\u00a0Alarie. Latin American markets offer incredible opportunities, but first you have to make sure that you have a strong local base. Developing the Latin American market requires attention and money !<\/h3>\n

Sales cycles and processes take longer in Latin America, which requires greater financial stability than in Canadian, American or European markets.<\/h3>\n[\/spb_text_block] [blank_spacer height=”30px” width=”1\/1″ el_position=”first last”] [spb_text_block pb_margin_bottom=”no” pb_border_bottom=”no” width=”1\/1″ el_position=”first last”]\n

GoExport Question<\/span><\/h2>\n[\/spb_text_block] [spb_text_block pb_margin_bottom=”no” pb_border_bottom=”no” width=”1\/1″ el_position=”first last”]\n

If you decide to invest $100,000\u00a0to do business in Latin America, are you convinced that it will earn you more there than in your local market?<\/h3>\n

In other words, before jumping in, you should maximize your earnings in your local market and in those close by (for example, if your company is in Quebec, look to the rest of Canada and\/or the United States).<\/h3>\n[\/spb_text_block] [blank_spacer height=”30px” width=”1\/1″ el_position=”first last”] [spb_text_block pb_margin_bottom=”no” pb_border_bottom=”no” width=”1\/1″ el_position=”first last”]\n

\u2014<\/strong><\/h3>\n

Our team has been looking at the growing importance of Latin American markets for several years. With our support, companies such as Ver-Mac<\/a> have been very successful there.<\/h3>\n

Contact our Latin American export experts and get recognized strategic support to develop your new markets.<\/h3>\n[\/spb_text_block] [blank_spacer height=”30px” width=”1\/1″ el_position=”first last”] [spb_text_block pb_margin_bottom=”no” pb_border_bottom=”no” width=”1\/1″ el_position=”first last”]\n

\"GoExport_logo\"<\/a><\/p>\n[\/spb_text_block]\n","protected":false},"excerpt":{"rendered":"

[blank_spacer height=”30px” width=”1\/1″ el_position=”first last”] [spb_text_block pb_margin_bottom=”no” pb_border_bottom=”no” width=”1\/1″ el_position=”first last”] From Mexico to Brazil to Panama to Colombia, companies around the world are curious about exploring Latin American markets. With such tantalizing growth rates, these markets attract business leaders from around the world who are ready to work hard to stand out. In order to increase your chances of […]<\/p>\n","protected":false},"author":1,"featured_media":7064,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[95],"tags":[],"aioseo_notices":[],"jetpack_featured_media_url":"https:\/\/www.goexport.ca\/wp-content\/uploads\/2021\/11\/1170x635_EN-2.png","_links":{"self":[{"href":"https:\/\/www.goexport.ca\/en\/wp-json\/wp\/v2\/posts\/7062"}],"collection":[{"href":"https:\/\/www.goexport.ca\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.goexport.ca\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.goexport.ca\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.goexport.ca\/en\/wp-json\/wp\/v2\/comments?post=7062"}],"version-history":[{"count":8,"href":"https:\/\/www.goexport.ca\/en\/wp-json\/wp\/v2\/posts\/7062\/revisions"}],"predecessor-version":[{"id":7118,"href":"https:\/\/www.goexport.ca\/en\/wp-json\/wp\/v2\/posts\/7062\/revisions\/7118"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.goexport.ca\/en\/wp-json\/wp\/v2\/media\/7064"}],"wp:attachment":[{"href":"https:\/\/www.goexport.ca\/en\/wp-json\/wp\/v2\/media?parent=7062"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.goexport.ca\/en\/wp-json\/wp\/v2\/categories?post=7062"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.goexport.ca\/en\/wp-json\/wp\/v2\/tags?post=7062"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}