Latin America is increasing its imports in 2017
Renuka sugar mill in Brazil auctioned by court 4 September 2017
Renuka's sugar plant in Sao Paulo called as revathi Mill is being auctioned by a Brazilian court to settle the debts of the company. Renuka has been struggling in Brazil financially for the last few years, unable to repay its debts.
India' trade with Latin America in 2016-17
The collapse of TransPacific Partnership (TPP) following the withdrawal of US by the Trump administration is good for India. The TPP had extra clauses for patent protection going beyond the WTO standards and this would have affected India’s generic medicine exports to Latin America.
Mexican Grupo Bimbo invests in India- June 2017.
Grupo Bimbo announced in June 2017 a joint venture agreement with Ready Roti India Private Limited (“Ready Roti”), in which Grupo Bimbo will hold a 65% stake. Ready Roti, generates annual sales of approximately US$ 48 million, with four plants and more than 500 associates. Grupo Bimbois one of the biggest Mexican MNC and a global leader in bread business. They have operations in 24 countrie sincluding in USA
India and Chile expanded PTA operative from 16 May
Under the expanded PTA, signed in September 2016, Chile has offered concessions to India on 1798 tariff lines with Margin of Preference (MoP) ranging from 30%-100% and India has offered concessions to Chile on 1031 tariff lines at 8-digit level with MoP ranging from 10%-100%.
In the original PTA concluded in March 2006, India’s offer list to Chile consisted of 178 tariff lines the Margin of Preference (MoP) ranging from 10%-50% at 8-digit level and Chile’s offer list to India consisted of 296 tariff lines with MoP ranging from 10% - 100% at 8-digit level.
Brazilian steel maker Gerdau selling its India plant - May 2017
According to news reports Gerdau is in advanced negotiations to sell the control or create a joint venture for SJK Steel Plant in India. Gerdau holds 91.3% of the mill, which can produce up to 300,000 tonnes a year. The plant is located in AndhraPradesh
India beats China in Pharma exports to Latin America
India exported 651 million dollars of pharmaceutical products to Latin America as against China's 404 million in 2016. India has consistently beaten China in the last five years in pharma exports to Latin America
India's global export of pharmaceuticals are double that of China. In 2016, India's exports were 13 billion dollars, as against Chinese exports of 7 billion. India is the tenth largest pharma exporter in the world while China's rank is 16th. billion dollars while Chinese exports to US were just 1.1 bn in 2016.
India is the fourth largest supplier of pharma to US with 5.1 India leads China in exports to European Union as well. In 2016, India's exports were 1.56 billion dollars as against China's 1.36 billion. Even in Africa, where the Chinese have spoiled the market with massive credit and some non-transparent practices, India's exports to Africa were 2.8 billion dollars as against 618 million of China in 2016.
The success of the pharma exports should be an inspiration for Indian exporters of other manufactured products who complain about and suffer from Chinese competition.
India-Peru FTA negotiations to start in July in Lima
It has been agreed that the first round of negotiations would be held in Lima in July. Indian companies can give their inputs for promotion or protection of their interests can submit them to the Commerce Ministry.
ZeeTV enters Latin America - April 2017
Zee TV has started a new Spanish channel ZeeMundo with Bollywood movies for Latin American viewers. To start with, it will be available in Mexico and Ecuador. Coverage will be expanded to other Latin American countries soon. ZeeMundo is already available in US for the hispanic audience.
Zindagi channel shows Brazilian soap opera- April 2017
Zindagi channel of India has started telecasting in April 2017 a Brazilian soap opera" Total Dreamer" ( totalmente demais) which runs into 175 episodes. This is a Globo TV production telecast in Brazil in 2015-16
Latin American GDP to grow by 1.1% in 2017
Latin America is projected to have a GDP growth of 1.1% in 2017, according to the 24 April report of the UN Economic Commission for Latin America and Caribbean (ECLAC). This latest growth estimate is less than the prediction of 1.3% in ECLAC's December 2016 report.
South America is expected to have a low growth of 0.6% while Central America will have a higher rate of 3.6%. Dominican Republic will be the region's growth champion in 2017 with 5.3%, followed by Panama at 5.2%, Nicaragua at 4.6% and Bolivia-4%.Venezuela is likely to suffer yet another economic contraction at 7.2% in 2017. Brazil , the biggest economy faces internal problems while Mexico, the second biggest faces external challenges.
Peru and Colombia are the countries which show promise of higher growth. Being a larger market, Colombia should be considered as the best opportunity for business in the region.
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Wipro has acquired a Brazilian company InfoServer (in April 2017)
InfoServer provides custom application development and software deployment services especially for banks. Approximate cost of this acquisition 9 million dollars.
Lenin's Ecuador victory lifts the Leftist spirit in Latin America
Lenin Moreno (popularly called as Lenin), the leftist candidate has won the Presidential run-off elections of Ecuador on 2 April, beating his rightist rival Guillermo Lasso, a wealthy banker.
Moreno's victory is being celebrated by the Latin American Left which had lost power to the right in Argentina and Peru in the recent elections. In Brazil and Paraguay, the rightists have brought down the leftist Presidents through constitutional coups. There is talk of 'retreat of the left' and 'fading of the pink tide' in the region. Against this background, the victory in Ecuador has come as a moral boost to the Left in the region and a relief and hope for those frustrated with the rise of the right-wing extremism in Europe, US and some other parts of the world.
The credit for the victory goes to the the exemplary performance of the leftist Rafael Correa's government in the last ten years. Correa has pulled the country out of its economic mess and chronic political instability of the past and strengthened the democracy with inclusive economic growth.
More in the article published today in The Wire..
Trump triggers greater Latin American interest in India.
" So far…. from God but so closetoTrump", is the cry of the Mexicans these days to their patron saint, Virgin of Guadalupe, affronted by Trump's racist comments and accusation of Mexican immigrants as 'criminals, rapists and drug dealers'. Not since the American annexation of Mexican territories and the US-Mexico war in the 19th century that the Mexicans are so outraged with the Big Brother.
The Latin Americans cannot believe that the US, which preached and forced Latin American governments to open up their markets and liberalize imports in the name of "Washington Consensus", is doing exactly the opposite by resorting to protectionism.
Caught between the bullying Trump, indifferent Europe and the suspect Chinese, the Latin Americans have started looking more seriously at India, attracted by its huge and growing market as well as its vibrant and diverse democracy. This is, therefore, the right time and an unmissable opportunity for India to intensify its win-win economic partnership with Latin America.
Essar sells off its BPO arm Aegis which had centres in Argentina and Costa Rica - April 2017
Aegis had the largest Indian BPO in Argentina employing 5000 staff, besides a smaller one in Costa Rica. Essar has announced that it was selling Aegis for 300 million dollars to a private equity firm from Singapore and exit the BPO business
Peru allows visa-free entry for Indian business visitors
The government of Peru announced in March 2017 that Indian business visitors holding US visas or a permanent resident status in the United States, Canada, the United Kingdom, Australia or any Schengen Statecan, can enter Peru and stay for 180 days during each visit. Mexico and some Central American countries have a similiar policy.
Portal for b2b between Indian and Latin American companies
A young " passionate about Latin America" Indian living in Peru Utsav Sharan has started a portal http://www.negociomundo.com to connect Indian and Latin American companies. Companies can make use of this commendable initiative.
Another useful website is http://www.latmeco.com run from Panama
Indian hero in Latin American film.
Prabhakar from Motihari in Bihar, settled in Costa Rica since 1997 has become the hero in the Costa Rican film " Enredados: la confusion" ( Entangled: the confusion)