U.S. Department of Commerce encourages exports to Latin America
Retail industry leaders know that finding diverse and lucrative markets for their goods is key to their success. To encourage more U.S. businesses to take advantage of fertile ground in Central and South America, the U.S. Department of Commerce announced its new "Look South" initiative.
According to the Department, 58 percent of U.S. companies export to a single market, relying heavily on Canada and Mexico, despite evidence that diversifying markets improves profits. In fact, Secretary of Commerce Penny Pritzker noted that exporting to two-to-four markets can triple the sales of exporting to only one.
In her speech at the World Affairs council in Los Angeles, where she unveiled the initiative, Pritzker tied the push for exports to Latin America to President Obama's larger National Export Initiative. While U.S. exports have increased, the LA Times reported that only one percent of U.S. companies sell to foreign markets. Pritzker said that many new export opportunities were within industries in which U.S. small and medium businesses excel.
The Commerce Department identified 11 Latin American countries with low tariffs, growing economies and good trade practices: Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama and Peru. Companies can use ecommerce software and retail business intelligence to strategically tap into these markets.
Business leaders can find more information about the initiative and actions the U.S. government is taking at www.export.gov/looksouth.
