Opportunity beckons in Latin America

Latin America is firmly on Chinese companies’ mental map. But what will they find when they get there? China Business Law Journal offers an analysis of the latest state of play, followed by a unique country-by-country guide

By Alfred Romann

There is an old joke that Brazil is the country of the future, and always will be.

“For Brazil in particular and for many South American countries in general, the future has now arrived,” says Scott Schwind, a partner at Thompson & Knight in the US. “Brazil, Chile, Colombia and Peru are enjoying sustained periods of economic growth fuelled by political stability, domestic consumer demand, a growing middle class, an investor-friendly business environment, abundant natural resources, well-prepared attorneys, bankers and businessmen and sophisticated companies.”

It all sounds idyllic and profitable. Economic growth rates over the last couple of decades have not been anywhere near the levels seen in China, but that now seems to be changing. More widespread political stability, coupled with inflows of funds from places beyond the US and Europe, are giving many countries here a significant booster shot.

In 2008, the 20 countries in Latin America had a combined gross domestic product (GDP) of US$6.1 trillion, making it the second largest economy in the world. In 2010 economic growth across the region was expected to top 5%. The continent’s population is close to 600 million.