A surge in trade with Latin America - includes related articles

Nation's Business, Feb, 1993 by Rosemary Werrett

Establishing good rapport with agents, representatives, and distributors is a must.

Trade fairs are cited as important vehicles for entering Latin American markets. These have traditionally been a part of the business scene, but executives attach greater importance to them now than ever. They say that more and more Latin American executives are attending them to obtain contacts and ideas. "Many Latin American executives now have greater [financial] ability to visit trade shows," says Stern, who advises getting lists of those who attend and contacting them by direct mail and by fax.

Acevedo recommends strong direct marketing: "You sell as you do in the U.S. You identify customers and send brochures and videos and sales representatives. Written material should be in Spanish."

Stern advises hiring at least one experienced person who can train other staff members in the particular requirements of exporting to Latin America.

Getting paid, of course, is the crucial detail of trading. And although that is less of a problem now than it was a few years ago, when the region was engulfed in a debt crisis, all Latin American countries still present the payment risks associated with relatively high inflation rates and frequent currency devaluations and revaluations.

Cash in advance is the safest means of doing business, of course, but that usually is not feasible. Many U.S. companies export through confirmed letters of credit.

One veteran exporter of training systems suggests that companies also look into sight drafts, which means that the purchaser instructs his foreign bank to pay for products before they are picked up at customs. This is less costly than letters of credit, "but you have to know with whom you are dealing," the executive warns.

However, his credo is: "If a customer needs the product, you can always find a way for it to be paid for."

Rosemary Werrett is president of New York-based Latin American Information Services, Inc. She writes frequently on business and financial affairs in the region.

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Climbing The Learning Curve

Many sources of information in both the public and the private sectors can help you evaluate your firm's business potential in Latin America. Following are several of the most prominent organizations and publications in the field.

The U.S. Department of Commerce's Trade Information Center can guide you to many information sources, contacts in each market, market studies, and other useful information for seasoned as well as first-time exporters. Call 1-800-USA-Trade.

The Commerce Department's "World Trade Week 1992" edition of its monthly Business America magazine is an excellent primer for novice exporters. Also, the March 23, 1992, issue is full of facts and advice on doing business in Latin America. Both are available from the U.S. Government Printing Office's Superintendent of Documents. Fax your request to (202) 512-2250.

The commercial attaches at U.S. embassies in Latin America are generally knowledgeable about local business practices and often can provide guidance on making contacts as well.