Over the past two years, exporters from around the world have faced unprecedented challenges. The pandemic disrupted trade activity in a variety of ways, and the export situation in Latin America felt the effects.
As we enter 2022, many are left wondering what this year could bring for exporters in Latin America. The past two years have been a rollercoaster, so what will come next?
In this post, we will discuss the exporting landscape throughout Latin America. We’ll discuss how Latin America’s export market fared through the pandemic before we look at forecasts and analyses on the outlook of the market for this coming year. We’ll also review 6 essential exports that B2B businesses should consider in 2022.
To wrap things up, we will discuss how Latin American exporters can leverage Alibaba.com to expand their cross-border trade efforts.
Table of Contents
Like many regions of the world, Latin America’s export market struggled during the pandemic. In 2020, exports from this region dropped by 9%. The value of the Latin American export market began to rebound in 2021. However, this growth is due largely to the increase in prices of exported goods, not to an increased volume of exports.1
Since prices are continuing to inflate, we forecast that the value of the export market will likely remain on the up and up. A report by the Inter-American Development Bank (IDB) confirms this theory.2
Historically, the top exporters in Latin America include Brazil, Chile, Argentina, Peru, Colombia, Ecuador, Paraguay, and Bolivia.3 As you can see, the bulk of Latin America’s exports comes from South America.
The IDB’s analysis shows that of all the Latin American regions, the countries in South America continue to create the most growth in exporting, while the Central American countries are not growing as much.
As the world learns how to better deal with the COVID-19, we believe that the Latin American export market will continue to bounce back and possibly be propelled forward. This is because there are several influences in play that are opening doors for exporting from Latin America.
A variety of social and economic policies, including free trade agreements (FTAs), will continue to forge connections between Latin American exporters and global buyers.
The Latin American Integration Association (ALADI) continues to promote “internal exporting” in the region. This is a long-standing organization that facilitates peace and economic cooperation between around a dozen Latin American countries, and its headquarters is in Uruguay.4
Although less than half of the Latin American nations are part of this alliance, it still promotes healthy economic activity.
One policy that facilitates external trade from Latin America is the North American Free Trade Agreement (NAFTA).5 This policy ensures free trade between Mexico, Canada, and the United States. Of course, NAFTA doesn’t ensure free trade for all of Latin America, but it provides a gateway to one of the largest economies in the world.
Since Latin America includes over 30 countries and territories throughout Central America and South America, there is quite a variety in the exports that are sold from this region.
Latin America includes a vast collection of ecosystems, ranging from tropical rainforests to snowy mountains. That’s why the region offers such a wide variety of natural resources that can be harvested and exported.
With that in mind, here are some essential exports from Latin America that B2B businesses should consider offering in 2022.6
Plant products are a common export among many Latin American countries. Some of the top plant product exports from Latin America are fruits, soybeans, coffee, sugar, beans, corn, wheat, and fresh flowers.
Animal products are another major Latin American export. Latin America is known for its beef, but some countries export a decent amount of dairy, chicken, and pork, as well.
Latin America exports a variety of vehicles, especially from Mexico and Argentina.
These include both cars and delivery trucks. Car parts are also a popular Latin American export.
Metals are major exports from many countries throughout Latin America. They are especially popular in Peru. Some of the most essential Latin American metal exports include gold, zinc ore, copper ore, and iron ore.
There are many mineral fuels that can be found throughout Latin America, so naturally, these minerals are an essential export. Petroleum products, both crude and refined, are very popular Latin American exports.
Many countries throughout Latin America have coastal landscapes, so it is no surprise that seafood is among the top exports. Since Latin America spans from above the Equator to close to the Antarctic circle, Latin America exports both warm-water and cold-water seafood.
The top seafood exports from Latin America include fish and crustaceans. Latin American countries also export processed fish, fishmeal, and fish oils.
Venturing into cross-border trade and testing out new markets can seem like a daunting process. However, with the support of a B2B e-commerce marketplace, such as Alibaba.com, this venture is a lot more attainable.
Alibaba.com is equipped with a variety of tools to help sellers connect with global buyers. These include innovative communication management technology, auto-translations, automatic currency conversions, and more. We also have a unique marketplace, called Alibaba RFQ, that allows exporters to browser requests from prospective buyers to submit quotes.
You can access all of these features by becoming an Alibaba.com supplier today. Sign up for Alibaba.com to expand your Latin American export business in no time.