Canada-Latin Trade is declining by the year, what can Latin America do to gain back interest?
By Santiago Gutierrez
Trade between Canada and Latin America declined in 2013. Total bilateral trade reached $51.4 billion from $52.1 billion in 2012, or a reduction of 1.3%. Exports from Canada to Latin America fell the most, to $11.7 billion in 2013,from $12.2 billion the previous year, a 4.1% dip. Canadian imports from Latin America, on the other hand, remained relatively unchanged. They reached $39.7 billion in 2013, from $39.9 billion in 2012, a 0.5% decline.
Over the last 38 years Canada has signed agreements with 17 countries in Latin America and the Caribbean to facilitate trade and investment. However, sales to the region only represent 2.6% of total Canadian exports and a larger section (8.7%) of its imports. Trade with Latin America is, of course, hindered by the extremely active commercial flow with its neighbor, the United States,making upfor 75% of all Canadian exports and 64% of its imports.
Canada sells to Latin America:cereals, machinery, paper products, and fuel, and in turn buys gold, silver, oil, fruits, mineral ores, and copper.
The decline in Canadian exports was seen in each of the five top Latin buyers. Mexico’s imports from Canada declined 6.4% to $5.1 billion during the year. Brazilian imports dropped 11.7% to $2.3 billion. Further reductions were registered amongtop-trade partners Chile (-4.8%), Venezuela (-0.9%), and Colombia (-19.2%).
In some cases …
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