CPTPP

Ongoing reduction of Mexican tariffs on beef and lamb under the CPTPP will provide opportunities for Australian exporters to grow the existing USD25 million share of the USD885 million Mexican red meat market.

Shipbuilding

Although two-way trade between Australia and the Caribbean has historically been small, Australian shipbuilders Incat and Austal demonstrate that niche diversification opportunities exist for Australian companies across the Latin America and Caribbean region. Austal has recently dispatched two cape-class Patrol Boats to the Trinidad & Tobago Coast Guard, which follows an earlier sale of ferries by both Incat and Austal to link the two islands.

Infrastructure

The Colombian government is supporting foreign investment for priority infrastructure development. Both Macquarie Capital and IFM are increasing their infrastructure holdings in Colombia, with Macquarie having recently finalised the acquisition of a highway near the capital Bogota. There is also an emerging opportunity in hydrogen and distributed energy systems, in particular microgrids, to meet the post-peace commitment to power regional and remote areas of Colombia.

Peru-Australia Free Trade Agreement (PAFTA)

Prior to the commencement of the Peru-Australia FTA in 2020, two-way trade with Peru was worth AUD656 million. With the agreement now in force, a range of Australian products such as sugar, dairy and Coopers beer now have enhanced access to the Peruvian market, one of the fastest growing economies in Latin America.

Green energy

Through its December 2020 National Energy Plan, Brazil has signalled an intent to develop a green hydrogen industry and significantly expand the use of wind and solar energy. Australian companies Fortescue Future Industries and Enegix Energy have both entered into arrangements with Brazilian partners to explore the potential for a green hydrogen powered future.

Education

Australian cloud-based education provider Matific is providing mathematics tutoring and lessons for students in Chile. Companies such as Matific demonstrate that opportunities exist in the education sector despite the pandemic, particularly when they combine Australia’s reputation for high-quality course delivery, with innovative solutions to student engagement.

Health

With pre-pandemic growth in health spending of around 3.6 per cent per year and an increasing share of GDP dedicated to health, Latin America and the Caribbean region present opportunities for Australian companies to deliver health services or products. Two examples are CSL, which has an Argentine laboratory to produce blood plasma and influenza vaccines; and Amcor, which has a large Argentine workforce to package pharmaceutical products.

Mining

Latin America’s wealth of mineral resources presents many greenfield opportunities for Australian companies. Chile has the world’s largest reserves of copper and lithium, both key resources as the world transitions to renewables. Brazil’s reserves of iron ore are second only to Australia, and in Argentina, Australian companies are leading the way in developing substantial lithium resources. Ecuador, Mexico and Colombia all have substantial mineral reserves but remain under-explored. Regional diversification opportunities exist for Australian companies prepared to look to the medium and long term; particularly when they leverage Australia’s positive reputation for project sustainability, technological expertise, and social licence.