• Pacific Alliance have strengthened Latin America’s position to trade in the

global economy
• Elections took place in all 3 countries between 2016 and 2018, meaning
that this year should be clear of any major political instability.
• Chile and Peru 2016 Columbia2018
• The elections have led to the establishment of more conservative
governments willing to reform the public sector and to stimulate the
economy through long-term policies. Colombia, for instance, has reduced
corporate tax. In Chile, new laws are being introduced to speed up the
process of setting up new businesses
• Source: Pictet Asset Management CEIC Datastream; estimates for 2018 as at
03.01.2019
• Website: https://www.am.pictet/en/belgium/global-articles/2019/monthly-
market-views/emerging-markets/latin-american-economic-outlook-2019
• Before 2000, there was little trade between Asia and Latin America.
• Latin America is an appropriate market for India’s competitively priced goods, services
and technologies.
• India’s economic expansion requires large imports of raw materials and agricultural
goods, in which Latin America is abundant.
• “Indian companies are eager to strengthen their presence in Chile especially in IT,
pharma and automobile sector," Kovind said.
• Indo-Colombian export and import basket is getting more and more varied over the past
few years. For instance, major Indian imports from Colombia include mineral fuel,
minerals oils, natural or cultivated pearls, precious stones etc. Similarly, Indian exports to
Colombia is also a mix basket containing motorcycles in CKD form, vehicle parts, cotton
yarn and woven fabrics of cotton, organic chemicals.
• ‘Localization’ is the key when entering Latin America as each country has a different
history and cultural norms.
India and Chile
• India and Chile established formal trade relations in 2005 by signing
Preferential Trade Agreement
• India and Chile exchange a diverse range of export and import goods,
reflecting healthy trading channels and reach into each other’s consumer
markets.
• Roughly a third of India’s exports to Chile comprise only cars and other
vehicles
• India: key exports to Chile includes transport equipment, drugs and
pharmaceuticals, tyres and textiles.
• Chile: key exports to India includes copper ore, scrap metals, fruits and
nuts, fertilisers.
• India and Chile entered into Double Taxation Avoidance Agreement (DTAA)
which provide tax relief for people doing business in Chile and India.
Business Opportunities
• In Colombia, the country saw a record in August (2019) of 23,306
vehicles sold, up 8.7% compared to the same month last year.
• It also reduces the import tariff on natural gas vehicles to 5% from
35% and omits tariffs on all-electric vehicles (EV).
• In terms of sustainability, the country’s Ministry of Energy and Mining
is trying to push EV sales. The ministry is awarding bonuses to
individuals or companies acquiring these types of vehicles.
• There is a move toward being more sustainable and “green”
throughout South America.
• All these factors make Chile, Colombia and Peru and emerging market
for EV vehicles and Indian car manufacturers such as Tata Mototrs
should capitalize on such opportunity.
Articles
• Latin America And Asia Offer Great Potential For Business Connectivity By Team Latin
America | May 7, 2019
• Chile wants to expand India trade ties. By: Rishi Ranjan Kala | September 3, 2019
• Why Peru and Colombia Have a Higher Spread of Profitability than Emerging Markets
Globally By Surbhi Jain -21 May 2017
• WIKIFLEET: Chile, Colombia, and Peru market updates. By: Daniel Bland | Dee 8, 2019
• Emerging Market Monitor: Investing In Latin America In 2019 | January 2019

Reports
• 2019 Latin American Business Environment Report, 20th Edition