In China, when it comes to Latin America, people would first think of enthusiastic samba, developed football sport and the rich oil resources. In fact, there are a lot of Chinese well-known commodity is made in Latin America. Especially in recent years, there are many high-quality Latin American commodity entering China market and successfully win the consumers, especially the young people's heart. The trade between China and Latin American countries is gradually rising in recent years and more and more exporters want to develop the Latin American emerging market. But because of the geographical and cultural differences, we know little about it. Today, I will get to know more about the Latin American market together with you.

Latin America

Latin America is not a state or a state but a collection of the region countries and the major economies are Chile, Brazil, Panama, Mexico, Colombia and Peru. Latin America is located in the area between the Atlantic and Pacific oceans, especially near the Pacific Ocean and close to Asia, so the Asian-Pacific region is its important trade market.

Pacific Alliance

Pacific Alliance was established in June 6, 2012 by Mexico, Colombia, Peru and Chile. The Alliance population accounts for 36% of Latin America with the GDP over $2 billion which accounted for 50% of Latin America foreign trade amount. It is located in the Pacific area which can achieve more trade with the Asian-Pacific region. The region within the Alliance can get the visa-free 180 days. Moscow is Latin America's second largest consumer market. It is forecasted that in 2050, it will become the world's fifth-largest economy. China is Colombia’s second largest suppliers which exports many innovative high-tech products to Colombia. Chile is the world's seventh largest economy and the world's most liberal economies, which has signed the free trade agreement with 60 countries. It is one of the most prosperous countries in South America. Peru's economic growth rate has reached 5.2% in 2013 and its main consumer market is electronics and home entertainment devices. Brazil is a member of the BRICs, the world's sixth largest economy. It is a large volume country with high consumption.

In the trade extent of each country in Latin America, the "International Finance Corporation Report in 2013" issued by the World Bank shows that the trade degree in Mexico is relatively loose and their import documents processing period is four days while Chile and Colombia are 6 days and Peru and Brazil are longer.

The Economic Commission for Latin America (CEPAL) pointed out that China’s trade volume with Latin America grew 22 times from 2000-2012 which has become one of the most important trading partners for Latin American countries in the nearly 10 years. The executive secretary of CEPAL, Alicia Barcena said that because of the increasingly close relationship between Latin America and China, how to increase the trade with China mainland has become a more important issue for Latin American countries.

With China's economic development, China’s connection with the world’s economy continues to strengthen. The degree of China’s participation of the world economic integration continues to deepen and China’s trade relations with Latin America will also continue to expand.

As China's economy continues to develop, the demand for energy and raw materials continues to expand. Latin America is an important exporter of the world’s soybean, copper, iron ore, timber and petroleum, and it will undoubtedly provides the conditions for the expansion of bilateral trade.

How to do business with Latin American?

1. Get to know each other first and build the trust. Establish the business environment with faith.

2. Slow decision-making. For the important business, make the decision through full business communication and analysis.

3. Many family business and complex hierarchical relationships. Contact the other party’s leader when doing business.

4. In order to avoid language barriers and get more effective communication, you can cooperate with the import agent.

5. During the personal communication, pay special attention to the service and mutual contact. The profession and personalization contact is more preferable.

6. Bargain. Get well prepare before quoting, preparing more choices to make the deal easily.

No matter you are a newcomer or an old foreign trade man, if you want to sell out your product, you must know each country’s market economy and commercial circumstances, knowing the enemy and yourself, you can fight a hundred battles and win them all.. Do the right thing in the right occasion so that you can get half the work with double results. Friends, have you learned it?