Trade Winds - Resources

Market Overviews and Best Prospects

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Learn about each of the Trade Winds markets by reading information compiled by our in-country Commercial specialists on best prospects and actionable opportunities for your products and services.

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Government: Presidential Republic
Major Cities: Buenos Aires (capital), Córdoba (second largest city), Rosario (third largest city), La Rural (major convention center)
Population: 47 million
Currency: Peso Argentino (ARS)

Market Overview

Argentina is the third-largest economy in Latin America, one of the most urbanized nations worldwide, and a resource-rich country with enormous potential for further development. It has a talented and educated workforce with a 98% literacy rate according to OECD, and the highest level of English proficiency in LATAM.

Despite economic turbulence throughout the last few years, Argentina remains a major leader in international markets, presenting great business opportunities for U.S. companies in critical sectors of the economy, such as energy, mining, information & communications technology, healthcare, and agriculture, among others.

In December 2023, President Javier Milei took office and began taking measures to liberalize trade and bring about economic stability in the midst of hyperinflation and soaring debt. Thus far, the government has simplified import regulations and procedures, diminished public spending, reduced inflation, and principally, reduced the fiscal deficit.

Best Prospects and Actionable Opportunities

Aerospace & Defense
Argentina is one of the main regional leaders in the aerospace industry, with 500+ companies actively operating between aeronautical and space SMEs and repair shops. The country has designed and launched satellites, allocated nearly $1 billion for aerospace projects, and subscribed to the Artemis Accords, a series of principles with which NASA seeks to establish a basis for international cooperation in the peaceful exploration and civilian use of the Moon, Mars, comets, and asteroids. Argentina’s domestic defense industry is relatively well established. Nevertheless, the country’s Navy and Air Force are in severe need of investment to modernize and improve capabilities.

Agribusiness
Argentina’s economy has historically been dominated by agriculture and consequently has a well-established manufacturing industry for farm machinery. The sector is composed of approximately 730 companies. Although domestic production of agricultural equipment accounts for around 80% of the total, there is still potential for U.S. companies in ag-tech, particularly in genetic materials to improve yields, packing and irrigation systems, process efficiency, and cold chain technology.

Energy
Argentina possesses the world’s second-largest shale gas and fourth-largest shale oil reserves, as well as abundant solar and wind energy resources. The government is keen to attract foreign direct investment to spur economic growth by providing greater market certainty and establishing a strong regulatory framework. U.S. expertise, technology, and equipment are needed to further develop critical sectors, such as clean energy (hydro, hydrogen).

Healthcare
Argentina’s healthcare expenditures are among the highest in the region, traditionally accounting for approximately 8 to 10 percent of its GDP. Imports account for 65 to 80 percent of the total medical equipment and device market. The U.S. is a leading supplier, particularly in high-end technology products, which represent the best prospect opportunities.

Information & Communication Technology (ICT)
ICT is a mature sector in which major communication networks are digital but still have limited competition. There are over 37 million internet users, with high internet penetration and smartphone use. Current challenges include connecting an unequally distributed population in distant, remote, and low-density areas, replacing copper cables with fiber, and the rollout of 5G services.

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Government: Federal Republic
Major Cities: São Paulo, Rio de Janeiro, Brasilia (capital), Belo Horizonte, Porto Alegre, Recife
Population: 215 million
Currency: Brazilian Real (BRL)

Market Overview

With the largest consumer market and GDP in Latin America, Brazil is an excellent market for experienced U.S. exporters seeking to tap into its diversified economy. Bilateral trade in goods and services between the United States and Brazil is approximately USD 110B per year. Brazil is the top export market in South America for U.S. companies. Having a local partner with in-depth knowledge of local market trends and regulations is critical to achieving export success. U.S. exporters across a wide range of industries continue to achieve results due to Brazil’s diversified domestic market and demand for international products, as well as a favorable view of technology and brands coming from the United States.

While Brazil may have it’s challenges for some U.S. exporters at the outset, there is high potential for success for those willing to invest the time and resources necessary to understand how to do business within this geographically diverse, resource-rich, and economically dynamic country. Progress in the bilateral commercial relationship has been gradual but continuous over the last decade, given multiple channels for dialogue between U.S. and Brazilian government officials as well as the private sector. In February 2022, the commercial relationship took an important step forward when the U.S.-Brazil Protocol Relating to Trade Rules and Transparency entered into force, which includes new commitments on Customs Administration and Trade Facilitation, Good Regulatory Practices, and Anticorruption.

Best Prospects and Actionable Opportunities

Aviation
Brazil has the third largest aviation system in the world. The most important OEM in Brazil, Embraer, imports from the United States more than 50 percent of the parts that go into its commercial aircraft. There is also high demand for helicopters and parts, executive aircraft, and agricultural aviation. Additionally, Brazil has a robust Maintenance, Repair, and Operations sub-sector that could lead to opportunities. There is also a need for aeromedical equipment due to the country´s geography.

Energy
Brazil is Latin America’s top oil producer with more than 3 million barrels per day. Opportunities include equipment and services as well as decarbonization technologies. Renewable energy accounts for 83 percent of Brazil’s electricity matrix. Solar and wind energy projects have increased exponentially in recent years. Offshore wind, clean hydrogen, and storage are newer areas that will be developed in the coming years. New technologies to help with the energy transition, including smart grid solutions, are of great interest to Brazilian companies.

Healthcare
Brazil is the largest healthcare market in Latin America. The United States is the top source of medical device imports to Brazil with approximately USD 1.25 B, 19 percent of the import market. Brazil is an important market for U.S. pharmaceutical firms as well, and opportunities exist in areas such as chronic disease, rare disease, and generic medicines. Digital Health products/services are also growing significantly, with increases in telemedicine and other technology usage.

Information Technology (ICT)
Brazil’s IT market is valued at over USD 45 billion. There are myriad opportunities for U.S. products and services in artificial intelligence, cybersecurity, internet of things, cloud computing, devices, and wearables, among others. Brazil’s telecommunications sector is also large, valued at USD 30B, and expected to grow by 30 percent in the next five years. 5G and mobile are the areas of greatest opportunity.

Safety and Security
Brazil has an extensive and well-developed safety/security market. Opportunities are available in several areas including video surveillance, access control, intrusion alarms, electronic surveillance, body cameras, digital security, non-lethal weapons, port and airport security, among others.

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Government: Representative democratic republic, whereby the President is both head of state and head of government, and of a formal multi-party system.
Major Cities: Santiago
Population: 19.6 million
Currency: Chilean Peso (CLP)

Market Overview

Chile is the wealthiest country in Latin America, boasting a GDP of $301 billion. Chile’s relatively stable economy, open market policies, zero tariffs, strong business practices, and rule of law make it an attractive export market for U.S. companies. The U.S.-Chile Free Trade Agreement (U.S.-Chile FTA), the only free trade agreement with the United States in the Southern Cone of South America, has been a cornerstone of this relationship: bilateral trade in goods and services quintupled over the past two decades since its signing. In 2023 alone, trade in goods between the two nations totaled nearly $34 billion, and services trade in 2023 reached nearly $11 billion. In December 2023, the U.S.-Chile Bilateral Tax Treaty entered into force further strengthening opportunities for trade and investment between the two countries. Overall, bilateral trade flows between the United States and Chile are well-balanced, with the United States exporting mineral fuels and machinery in exchange for Chile’s copper and agricultural products. 

With all U.S.-origin products entering Chile tariff-free, except for some alcoholic and non-alcoholic products and some luxury goods, which are subject to excise-taxes, the U.S.-Chile economic partnership continues to offer robust opportunities for American businesses.

Best Prospects and Actionable Opportunities

Agricultural Machinery
Agriculture plays a vital role to the Chilean economy. Since 2017, Chile’s agricultural and related GDP increased significantly, reaching an estimated $28.9 billion in 2023. Chile’s agricultural sector employs approximately 10 percent of its work force, and salmon is Chile’s top export behind only copper. Chile’s agribusiness sector is under pressure to increase sustainable productivity due to challenges like climate change and a prolonged drought. With agriculture consuming 72% of Chile’s water resources, there is growing demand for efficient irrigation systems and water-saving technologies. Chile’s agricultural sector offers significant opportunities for U.S. businesses, particularly in providing advanced machinery and sustainable technologies.

Information Technologies
Chile’s focus on cybersecurity underscores the need for advanced solutions that U.S. companies with digital solutions and expertise in cybersecurity, AI and IT services can provide. In March 2024, President Gabriel Boric enacted Chile’s Cybersecurity Framework Law, making Chile the first country in Latin America to establish a cybersecurity agency and regulatory framework. Chile’s information technology (IT) sector is rapidly expanding, with the market projected to grow by $3.9 billion from 2022 to 2027, driven by increased adoption of AI, digital services, and cloud computing. Chile is also emerging as a data center hub for Latin America, driven by increased digitalization and e-commerce, offering further potential for U.S. businesses in digital infrastructure.

Safety and Security
Chile’s rising security challenges have intensified demand for advanced safety solutions. With violent crimes such as homicides and vehicle thefts on the rise, there’s an increased need for cutting-edge security equipment and technologies to strength public safety and disrupt organized crime. This has led to a growing market for crime prevention and detection equipment, bodycams, municipal monitoring systems, access control devices, and related security services. In addition to addressing crime, Chile also faces significant natural disaster risks, particularly from wildfires. The National Forestry Corporation (CONAF) frequently seeks suppliers for firefighting equipment and resources, presenting further opportunities for firms specializing in emergency response solutions.

Clean Energy Technology
Taking measure to address climate change is a priority for the current Chilean administration in part due to the country’s heightened climate vulnerability. Chile is a global leader in terms of renewable energy production and is working to greatly expand production as well as energy storage capacity as part of its ambitious national plan to mitigate pollution and climate threats. Chile’s Climate Change Law, published in 2022, sets a goal of achieving 65% renewable energy by 2025 and 80% by 2030. Along with energy storage and renewable energy generation, Chile is interested in developing a smart grid to improve energy efficiency and becoming a global leader in clean hydrogen production.

Mining
Chile, the world’s leading copper producer and the second-largest producer of lithium, offers substantial opportunities for U.S. businesses in the mining sector. Chile’s mining industry remains a key contributor to its economy, accounting for 13.6% of GDP in 2022 and 58% of the country’s exports. This sector is also investing in sustainable practices, such as incorporating desalination and renewable energy, and adopting automation to improve efficiency and safety. For U.S. companies, this translates to opportunities in supplying technologies that enhance operational efficiency, reduce costs, and support sustainable mining practices.

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Government: Unitary republic with a presidential system. The President serves as both head of state and government, alongside a multi-party legislative assembly known as the Congress of Colombia.
Major Cities: Bogotá (the capitol), Medellín, Cali, Barranquilla, Cartagena.
Population: 51 million people
Currency: Colombian Peso (COP)

Market Overview

Colombia has the fourth largest economy in Latin America and the third largest population with approximately 51.5 million inhabitants. The country boasts five major commercial hubs: Bogota, Medellin, Cali, Barranquilla, and Cartagena offering U.S exporters access to multiple commercial centers. While these cities offer unique market opportunities, they are close enough via air routes that it is common for U.S. firms to have one partner cover the entire country.

Colombia became a member of the Organization for Economic Cooperation and Development (OECD) in April 2020. In 2022, Colombia was designated by the United States as a major non-NATO ally, the third country in Latin America with this distinction. These developments increased opportunities for security assistance and trade in the country.

Colombia’s extensive ongoing infrastructure projects will generate demand for project financing, design, logistics, as well as equipment for construction of public roads and airports, water treatment, water supply, electric power generation, pollution control technologies, port security, railway construction, transportation, security and defense items and services, and mass transit systems. New Infrastructure initiatives will bolster demand for these services in addition to creating demand for services related to river dredging, airport master plans, urban planning, and other construction and design services.

Best Prospects and Actionable Opportunities

Defense and Security
The Defense sector in Colombia offers opportunities for U.S. companies in both public and private procurement. Despite the current Petro Administration’s efforts to implement its strategic plan for Total Peace, Colombia’s persistent security problems continue to shape the country’s agenda. Colombia continues to be a defense equipment importer via state-owned entities and the United States continues to enjoy a privileged relationship with Colombia for military equipment and security-related acquisitions. Colombia’s defense landscape provides opportunities for advanced technologies for UAV and counter-UAV technologies, cyber, communication and other advanced technologies. Government-owned defense firms partner with foreign firms presenting lucrative opportunities for U.S. companies to expand their market presence.

Education
U.S. colleges and universities are the preferred destinations for Colombian students. Colombia is ranked second in South America for total students studying in the U.S. with STEM and business-related programs being most popular. Intensive English programs have also seen year-over-year growth.

Environmental Technologies
Opportunities exist in the water and wastewater sectors. While access to potable water and sanitary system infrastructure has improved, coverage remains uneven, primarily in rural areas. The Colombian government has prioritized water and sanitation investments allocating $1.8 billion to expand water and sewerage networks.

Information and Communications Technology (ICT)
Colombia’s ICT industry is concentrated on software and services providing opportunities in hardware and software solutions for both the public and private sectors. Cloud service adoption will drive market development in Colombia over the medium-term providing opportunities to companies who can increase connectivity and affordability in this sector.

Renewable Energy
Colombia is a renewable energy powerhouse, generating approximately 75% of its electricity from renewable sources, primarily hydropower. To further diversify its energy mix Colombia is actively promoting solar, wind, and biomass projects. There is a growing demand for advanced technologies to optimize energy storage, grid integration, and the overall efficiency of renewable energy systems.

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Government: Presidential Republic
Major Cities: Montevideo
Population: 3.5 million
Currency: Uruguayan Peso

Market Overview
Uruguay is a small high-income country of 3.5 million people and is a primarily agricultural-export driven economy. The Uruguayan economy has grown robustly over the past 20 years, weathering regional economic downturns, led by goods exports and private consumption, which was in turn driven by low unemployment, rising wages, and a strong peso. A positive international environment – comprised of high commodity prices, low interest rates, and strong capital inflows – has been a cornerstone of strong and sustained growth.

Uruguay can function as a test market for those international companies that have no previous experience in the region. Uruguay is notable for its political stability and ease of doing business. Uruguay has a strong welfare state, with the most equal income distribution, largest middle class, and lowest percentage of the population in poverty in South America. In April 2022, Standard & Poor’s affirmed Uruguay’s investment-grade BBB rating and stable outlook. The U.S.-Uruguay bilateral relationship is strong, and Uruguay’s government and business sectors have a favorable view of U.S. business. 

Uruguay has the highest GDP per capita in South America and is a first mover in several critical and emerging technologies, including ICT and renewable energy. In 2024, the U.S. and Uruguay signed a Memorandum of Understanding for Cooperation on Select Critical and Emerging Technologies, including commercial cooperation on AI, data, clean energy, telecommunications, biotechnology, semiconductors, and cyber security.

Best Prospects and Actionable Opportunities

Healthcare
Uruguay boasts a universal healthcare system, with 9% of GDP allocated to health spending. As the nation modernizes its healthcare infrastructure, opportunities arise to export medical equipment and devices, advanced pharmaceuticals, medical instruments, and products for clinical labs. Procurement by the public sector follows a competitive tendering process, with all offers published online at the state’s procurement agency platform called “SICE.” and tend to favor the lowest-cost offer.

Information & Communication Technology (ICT)
Uruguay has evolved into a technology hub in Latin America. With a strong emphasis on political stability, innovation, and STEM education, the country is a leader in software exports and ranks first in Latin America in the E-Government Development Index, with nearly universal high speed internet access. Ongoing collaborations with major tech players like Microsoft and Google, coupled with investments in infrastructure and 5G, position Uruguay as a key player in the next-generation technology realm. Best opportunities are in cybersecurity, 5G telecom technologies and equipment, cloud computing, and AI.

Ports and Logistics
Uruguay serves as a vital logistics hub for Latin America, particularly with its transformative projects at the Port of Montevideo. Comprehensive dredging projects have deepened the port’s channels, allowing larger vessels to dock, making it a key player in regional trade and transshipment. The Government has extended the concession of Montevideo’s port container terminal (Terminal Cuenca del Plata) to the Belgian logistics company, Katoen Natie, until the year 2080. Katoen Natie, which will invest USD $455 million in the expansion of its specialized container terminal over the next 10 years. Once the project is completed, the Port of Montevideo will have a specialized state-of-the-art terminal which will double its current capacity be able to service some of the largest container ships. The revitalization of the cargo rail network and investment in updated rolling stock, is another crucial component, improving connectivity between ports and inland areas.

Renewable Energy
Uruguay has positioned itself as a leader in renewable energy within Latin America through strategic investments in wind, solar, and biomass energy. The country has decarbonized its grid and is now focusing on decarbonizing transportation and industrial processes, aiming for full carbon neutrality by 2050. Uruguay is also pursuing green hydrogen production and offshore wind energy, attracting international investments and partnerships. The commitment to renewable energy is also reflected in its energy matrix, with nearly 98% of electricity coming from renewable sources.

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