Florida expands Latin American trade ties

Latin Trade, Sept, 1999

When more than 300 Florida business executives headed for Mexico in July on the state's largest-ever trade mission, it wasn't surprising that Jeb Bush, the state's governor, headed the delegation. For more than a decade, Florida has cultivated its trading ties with Latin America and the Caribbean. Today, Florida is the dominant U.S. trading partner with Brazil, Venezuela, Colombia, Argentina and the nations of Central America.

While Florida exports to Mexico have been on a smaller scale, Bush said the recent trip would result in millions of dollars in increased sales. President Ernesto Zedillo of Mexico, who met with Bush and the business delegation, cited an "enormous potential" for increased Florida-Mexico trade.

Bush isn't the only Florida leader focused on expanding the state's commercial ties with the region. Secretary of State Katherine Harris also called for an expansion of trade at a recent Florida International Business Forum sponsored by the Florida Chamber of Commerce.

As Steve Liner, vice president of communications for the Tallahassee-based chamber, explains, "Over the years, Florida's economic growth and prosperity has become more and more interwoven with that of our Latin American trading partners. Florida business and government leaders remain committed to fostering our relationships with the people of Central and South America. Located at a geographic crossroads, Florida's ports, financial centers and expertise put us in a perfect position to help develop Latin markets."

Florida's natural international ties have spelled opportunities for all sectors of business. For example, professional services firms, universities, real estate developments and retailers throughout the state often benefit from Florida's Latin American visitors.

In addition, Latin Americans traveling to the United States many times combine business with vacations, taking their families to Disney World in Orlando or to Miami for shopping and entertainment. While the kids go clubbing on South Beach or ride the latest attraction at Universal Studios, the adults can fit in financial and legal errands.

Another Florida-Latin link is medical tourism. Many Latin Americans come to the United States for advanced treatment at South Florida's modern hospitals or for second opinions from leading physicians.

During the 1990s, Florida's trade to Latin America and the Caribbean grew at double-digit rates, according to Manny Mencia, vice president of international trade for Enterprise Florida, the state's public-private economic development organization. Latin America accounts for about 75 percent of the state's total exports, which include computers and other office supplies, automobile parts, medical equipment and apparel.

The state's export growth rate slowed to just 2.2 percent in 1998, primarily because of financial difficulties in major Latin nations. On the other hand, relatively lower prices for Latin American goods have sparked an increase in imports from the region, including apparel, machinery and seafood. In 1998, imports rose by 17.9 percent, as Florida's overall trade grew by 8.8 percent to $48.5 billion.

"I expect 1999 will be another challenging year," says Mencia, "but there is some reason to be optimistic. I don't think the slowdown will be as protracted as many pundits had originally forecast. The open-market policies and emphasis on private sector initiatives have made Latin economies more resilient than in the past."

SunTrust

Helping international clients manage their investments

Many international clients turn to SunTrust for their banking and investment needs. Our customers are looking for confidentiality in the handling of their affairs, reasonable return on investment and excellent service," says Alex Herrera, senior vice president and manager of the international private banking group of SunTrust Bank, Miami, N.A. "Our bankers build strong relationships with each of our clients. In fact, 90% of our growth comes from clients who refer their friends and family to us."

International business transactions originating from the Miami office have more than doubled over the past six years, to over US$1 billion assets under management. Currently, over 950/0 of SunTrust Miami's International Private Banking customers are from Latin America and the Caribbean.

Among products popular with SunTrust's clients are an offshore annuity that invests in equity markets but guarantees the principal. Other services include brokerage, discretionary investment management accounts, depository and loan services. In addition, the bank offers investment in offshore trusts through its Cayman Islands-based SunTrust Banks Trust Company (Cayman) Ltd.

"We travel to Latin America regularly to visit our clients and prospects," Herrera says; "We also serve them in our downtown Miami office, which is located at I SE 3rd Avenue. Our business is highly personalized with great attention to detail. That means if an individual client has a daughter or son studying in Boston or Los Angeles, they count on us to see that they are well taken care of."