Member Article

British ambassadors encourage NW links with South America

South America-based British Ambassadors have encouraged firms from the North West to consider opportunities in Peru, Venezuela, Costa Rica, Nicaragua and Mexico.

Speaking at a conference in Manchester’s Ethiad Stadium, the Ambassadors emphasised that Brazil is not the only growth market in South America that has potential for links with British business.

The North West of England is already increasing its output to South America, as exports grew by 8% at the end of 2012 and beginning of 2013.

UK Trade and Investment regional director, Clive Drinkwater, introduced the event and urged companies to stay ahead of the game by investigating South American opportunities.

Ambassadors outlined the economic profiles of their respective countries, and highlighted key markets.

HE James Dauris from Peru told North West firms the country’s natural resources of oil, gas, hydrocarbons, and minerals such as gold, copper and zinc have already attracted 20 FTSE 100 companies.

Its GDP has also triple since 2000, over taking Brazil’s 40.3% growth rate, and China’s 39.5% growth rate.

Despite these impressive figures, UKTI said the UK still only accounts for less than 1% of exports to Peru.

Venezuela was hailed as a country of “surprising” prospects, with $372m worth of UK exports to the country last year, while it also has the largest oil reserves in the world after recently overtaking Saudi Arabia.

HE Catherine Nettleton highlighted Venezuela’s potential, with large fuel resource accounting for the majority of its economic successes, although the country does have a complex bureaucratic system which the British Embassy can assist businesses with.

Costa Rica was praised for its strengths in manufacturing,after increasing its exports from $1bn in 1985 to $9.6bn in 2008.

The UK currently has a vast trade deficit with Costa Rica as a result of the significant amount of fruit imported from there, with a huge majority of pineapples in the EU originating from the country.

HE Chris Campbell said, however, there is still great potential in food and drink, education, security and green energy in the country.

Nicaragua was also put forward for its growth potential in textiles, tourism, agribusiness and energy, although exports from the UK are currently very low at 5.5m.

Mexico was also fronted as a country with considerable potential, with some analysts predicting expansion in its economy by 2040.

Strengths in manufacturing and car exports were highlighted, while UKTI said British brands are becoming increasingly popular, especially creative goods and video games.

The Mexican government is also said to be highly committed to renewable energy, and it was hailed as the ‘one to watch’ for 2013 in the energy market.

Clive Drinkwater commented: “An ability to trade in high growth markets will be a defining characteristic of the most successful business of the future, and we would like to see as many businesses as possible attending this event to learn how they can make the most of opportunities in South America.”

“While the BRIC markets still provide great opportunities, businesses would be foolish not to take a long term view, and opportunities in the new growth markets such as South America should not be ignored.

“There is a wealth of help and advice available from UK Trade & Investment – both from our staff in the North West and from embassy contacts overseas, all of whom are waiting for businesses to give them a call, so if you are thinking of doing business in South America I would encourage you to pick up the phone, as there has never been a better time.”

This was posted in Bdaily's Members' News section by Miranda Dobson .