All posts by Suzana Merchak

Do you know what International Trade means?

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International trade is an economic system that facilitates the exchange of goods, services, and resources between countries around the world. This large-scale economic interconnection is fundamental to global economic growth and fosters solid commercial relationships between several nations.

  • Trade Outlook: International trade carries many benefits. It allows nations to specialize in the production of goods and services in which they have comparative advantages, increasing efficiency and reducing costs. Furthermore, the diversity of products and services available in the global market provides consumers with more options and opportunities.
  • Innovation: Although international trade offers exciting opportunities, it also presents challenges. Tariff and non-tariff barriers can make access to certain markets difficult, and cultural and legal differences can create obstacles in trade relationships. However, overcoming these challenges can lead to sustainable growth and greater understanding between nations.

The outlook for global trade is constantly changing due to political, technological, and social factors. Emerging trends such as digitalization and automation are transforming the way international business is done. Staying informed about these trends is essential to anticipate future opportunities and challenges. And for that, innovation prospects are a fundamental driving force.

Our customized solutions and innovative geopolitical approach help our clients overcome challenges and make the most of opportunities internationally.

“South-South” Cooperation: China and LATAM

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Did you know that China is one of the main commercial partners of South America? As an important source of direct foreign investment and contributions to energy and infrastructure, China’s role in Latin America has grown rapidly.

For example, in 2013, Chinese President Xi Jinping launched the Belt and Road Initiative (BRI) which includes more than 15 Latin American countries. China has promoted the BRI as an opportunity for nations to develop infrastructure and create new commercial opportunities with Chinese companies.

In 2000, the Chinese market represented less than 2% of Latin American exports. In the following eight years, trade grew at an average annual rate of 31%. Through this “Sur-Sur” cooperation, a milestone centered on aid, investment, and commerce. The Global Trade Analysis Project (GTAP) suggests a return to the raw materials export model and a reduction in industrial activity in Latin America, particularly in high technology sectors.

On the other hand, between 2000 and 2018, China invested $73 billion in the raw materials sector in Latin America, including refineries and processing plants in countries with significant amounts of carbon, copper, natural gas, oil and uranium.

You shouldn’t miss this opportunity. Merchak completed 29 years of experience in March 2024, and as an innovative trading company, we launched our newest arm in Shanghai, China. Contact our experts to learn more about how we can boost your business through customized solutions.