"Latin America will be the new China in 5 to 10 years"
A delegation of 17 export-focused Queensland companies will visit Latin
America next month between the 9th and 20th of March.
The delegation will visit Mexico, Brazil, Colombia and Chile.
Many Australians would regard it bizarre that during the world’s worst
economic conditions for decades 17 Queensland companies and Queensland's Trade and Investment office in the Americas would be undertaking such a mission.
It is not insanity, it is strategic. Queensland is moving into these merging markets to get ahead of the pack just as it did in China and India. The world is rapidly changing and we have to keep up with the new markets.
The emerging business and investment opportunities in Brazil, Chile, Peru, Colombia and Mexico are often underestimated in Australia despite the economic facts. Queensland is now looking beyond the crude, out-of-date characterisations of Latin America to the hard realities and in doing so is encouraging our companies to do business there.
Austrade adds Argentina to form a six-pack of countries. With limited resources, Queensland has stayed with its Latin super-five which adds Peru. My commitment to the region is long standing. In 2004, as Premier of Queensland, I led an historic mission to Chile and Brazil, becoming the first Australian leader to meet Brazil’s President, Luis Inacio da Silva. By the end of my first year as Commissioner I will have visited each of these countries at least twice, some three times and Colombia 4 times.
These particular countries have generally stable political and economic environments and are increasingly looking to open up to the world with pro-foreign investment policies.
All of these countries are strong in mining and so compatible with Queensland and the expertise and skills of our companies. Further, as outward looking countries, they also have a desire for improved and expanded infrastructure – ports (land and sea), rail, road, air, tunnels, rapid transit systems and the latest ticketing technology.
There are also opportunities in energy and research collaboration. All of
these countries support public private partnerships.
My Prediction:
Notwithstanding the fact that the region may face declining capital inflows as a result of the current world economic crisis, if its enormous potential is combined with the fact that Latin America is not as intrinsically tied to the western capital markets as many other countries, in my view, Latin America will be the new China in 5 – 10 years. Commentators will then be saying, where did Colombia’s economic growth come from and how did Brazil, Chile and Peru grow their economies so quickly? Companies that didn’t twig earlier will then be hoping it’s not too late to get into the market.
As Queensland’s Trade and Investment Commissioner for the Americas, I am ensuring our companies know about these opportunities and Queensland will do everything it can to give Australian companies the first mover advantage.
Brazil is the largest of the Latin super–five. On my third visit to Brazil my
assessment of the opportunities for Australian companies are as follows:-
Key economic indicators and statistics for Brazil (2007)
• Population – 200 million
• GDP - US$1,295.4 billion
• GDP per capita - US$6,942
• Real GDP growth - 4.4 per cent
• Inflation - 3.6 per cent
The ‘B’ in BRIC, Brazil has undergone a significant move towards modernisation driven by a more liberal trade regime, deregulation and privatisation and Queensland is generally well known in Brazil as the premier mining State of Australia.
Brazil is interested in diversifying its sourcing of equipment and services
and Australia’s sound reputation in this area gives Queensland companies a good chance of winning business.
The need for new equipment and the development of new Brazilian mines and exploration is expected to increase significantly in the next few years. This means Australian opportunities from the increased mining activity, where there will be a tendency to outsource services and equipment.
Industry specialists I have read or met indicate the following areas are where the Brazilian mining industry will be investing:-
• Equipment – sample analysis mining laboratory equipment, trucks, shovels, drilling equipment, front loaders, wheel dozers, and environmental control equipment;
• Services – drilling, exploration, airborne geophysics, contract mining and engineering services, materials handling, and environmentalmanagement;
• Software – mining, exploration, and geophysics.
Through a special agreement with the State of Minas Gerais, which I signed as Premier, Queensland is uniquely placed to help our companies with access to this much prized market.
Minas Gerais, like the name says, is a mining state. It’s home to Vale, the world’s second largest mining company. It’s also prosperous with the third largest economy in Brazil, accounting for nearly 9% of national GDP.
I believe that opportunities exist in mining services and technology, but also infrastructure (air and sea ports, road, and rail) energy and research in partnership with the Federal University and the FDC Business School.
During my October 2008 visit to Brazil, a Memorandum of Understanding was signed between the Federal University of Minas Gerais and the University of Queensland (Professor Alan Lawson)
Best wishes,
Peter Beattie
Queensland’s Trade and Investment Commissioner to the Americas
America next month between the 9th and 20th of March.
The delegation will visit Mexico, Brazil, Colombia and Chile.
Many Australians would regard it bizarre that during the world’s worst
economic conditions for decades 17 Queensland companies and Queensland's Trade and Investment office in the Americas would be undertaking such a mission.
It is not insanity, it is strategic. Queensland is moving into these merging markets to get ahead of the pack just as it did in China and India. The world is rapidly changing and we have to keep up with the new markets.
The emerging business and investment opportunities in Brazil, Chile, Peru, Colombia and Mexico are often underestimated in Australia despite the economic facts. Queensland is now looking beyond the crude, out-of-date characterisations of Latin America to the hard realities and in doing so is encouraging our companies to do business there.
Austrade adds Argentina to form a six-pack of countries. With limited resources, Queensland has stayed with its Latin super-five which adds Peru. My commitment to the region is long standing. In 2004, as Premier of Queensland, I led an historic mission to Chile and Brazil, becoming the first Australian leader to meet Brazil’s President, Luis Inacio da Silva. By the end of my first year as Commissioner I will have visited each of these countries at least twice, some three times and Colombia 4 times.
These particular countries have generally stable political and economic environments and are increasingly looking to open up to the world with pro-foreign investment policies.
All of these countries are strong in mining and so compatible with Queensland and the expertise and skills of our companies. Further, as outward looking countries, they also have a desire for improved and expanded infrastructure – ports (land and sea), rail, road, air, tunnels, rapid transit systems and the latest ticketing technology.
There are also opportunities in energy and research collaboration. All of
these countries support public private partnerships.
My Prediction:
Notwithstanding the fact that the region may face declining capital inflows as a result of the current world economic crisis, if its enormous potential is combined with the fact that Latin America is not as intrinsically tied to the western capital markets as many other countries, in my view, Latin America will be the new China in 5 – 10 years. Commentators will then be saying, where did Colombia’s economic growth come from and how did Brazil, Chile and Peru grow their economies so quickly? Companies that didn’t twig earlier will then be hoping it’s not too late to get into the market.
As Queensland’s Trade and Investment Commissioner for the Americas, I am ensuring our companies know about these opportunities and Queensland will do everything it can to give Australian companies the first mover advantage.
Brazil is the largest of the Latin super–five. On my third visit to Brazil my
assessment of the opportunities for Australian companies are as follows:-
Key economic indicators and statistics for Brazil (2007)
• Population – 200 million
• GDP - US$1,295.4 billion
• GDP per capita - US$6,942
• Real GDP growth - 4.4 per cent
• Inflation - 3.6 per cent
The ‘B’ in BRIC, Brazil has undergone a significant move towards modernisation driven by a more liberal trade regime, deregulation and privatisation and Queensland is generally well known in Brazil as the premier mining State of Australia.
Brazil is interested in diversifying its sourcing of equipment and services
and Australia’s sound reputation in this area gives Queensland companies a good chance of winning business.
The need for new equipment and the development of new Brazilian mines and exploration is expected to increase significantly in the next few years. This means Australian opportunities from the increased mining activity, where there will be a tendency to outsource services and equipment.
Industry specialists I have read or met indicate the following areas are where the Brazilian mining industry will be investing:-
• Equipment – sample analysis mining laboratory equipment, trucks, shovels, drilling equipment, front loaders, wheel dozers, and environmental control equipment;
• Services – drilling, exploration, airborne geophysics, contract mining and engineering services, materials handling, and environmentalmanagement;
• Software – mining, exploration, and geophysics.
Through a special agreement with the State of Minas Gerais, which I signed as Premier, Queensland is uniquely placed to help our companies with access to this much prized market.
Minas Gerais, like the name says, is a mining state. It’s home to Vale, the world’s second largest mining company. It’s also prosperous with the third largest economy in Brazil, accounting for nearly 9% of national GDP.
I believe that opportunities exist in mining services and technology, but also infrastructure (air and sea ports, road, and rail) energy and research in partnership with the Federal University and the FDC Business School.
During my October 2008 visit to Brazil, a Memorandum of Understanding was signed between the Federal University of Minas Gerais and the University of Queensland (Professor Alan Lawson)
Best wishes,
Peter Beattie
Queensland’s Trade and Investment Commissioner to the Americas
