The growing interest in the American market, the free trade agreements in force, and those under negotiation were addressed at the last IMEX '04 round table. Under the slogan "Expanding Market, Free Trade in America," representatives from the different markets present analyzed the state of trade relations on both sides of the ocean.
The panel was introduced and moderated by Natalia Obregón, director of Radio Intereconomía, who gave a brief introduction to the American market. "In this market, Spain has a lot to offer," she asserted. "The relationships that Spain maintains with countries like Mexico, or even with Mercosur," Obregón said, "place us in a leading position within the European Union."
The influence Spain exerts in Latin America was also addressed by Gerardo Bugallo, Director General of Foreign Policy for the Americas at the Spanish Ministry of Foreign Affairs. This influence, he explained, stems from linguistic and cultural factors. "Throughout the history of Spanish companies' international activities, the attraction to the familiar has always prevailed," he added. The other point of his speech focused on the poor image of Spain in the United States, "bad news," according to Bugallo, "considering that there are currently 43 million Hispanics living in the United States."
The Vice President of the Port Authority of Valencia, Rafael Aznar, then took the floor, speaking about the importance of transoceanic transport in trade relations with the Americas. Aznar emphasized port interconnectivity, highlighting its role as a link between different areas of trade. He also focused on current needs, given the market situation. "The oversupply has driven down freight rates, forcing ports to add new capacity, which is related to increasing the critical mass of cargo for shipping lines," Aznar pointed out. He continued his presentation by analyzing the qualities a port must possess to be selected for transoceanic trade. "It needs to be well-located, have good infrastructure, and also achieve a balance between imports and exports—requirements that are met in the case of the Port of Valencia," he concluded. Regarding relations with Latin America, the Valencian representative proposed seeking symmetry and reciprocity with American ports, establishing alliances, and sharing technologies. "If we are able to do this, we will have a great chance of becoming true platforms for foreign trade." This message served to conclude his remarks.
Next, the various representatives from the countries attending the Congress shared their perspectives on both domestic and international trade in their respective markets. The first to speak was Marcel Lebleu, Commercial Counselor at the Canadian Embassy, who called for greater attention to be paid to his country. "We are the second largest economy in the Americas, and yet Canada receives little international attention." A key fact about the foundation of their economy is that approximately half of their Gross Domestic Product comes from exports. "Our quality of life depends on foreign markets," Lebleu pointed out.
He also commented on the impact of various trade agreements on Canada, particularly NAFTA. "What cannot be doubted is that NAFTA transformed the North American economic landscape." Regarding the presence of Canadian companies in Europe, he said that "they manage to sell more from the European continent than companies that export products from Canada." Finally, Lebleu spoke about the interest the Canadian market generates among Spanish businesses. The advisor concluded by saying that "Canada is a very interesting market for Spanish companies and can be the key to entering the North American market."
His counterpart at the Mexican Embassy and director of Bancomext, Carlos Ceceña, began by providing some data that underscores the importance of the Mexican market in the international economic context. "We are the second largest recipient of foreign investment, after China," he stated. As was evident in his remarks, foreign trade is the foundation of Mexico's economy. "To a large extent, our prosperity is due to our openness to foreign trade," Ceceña asserted, going on to mention the various agreements that facilitate Mexico's trade with other countries, highlighting NAFTA with North America and the Free Trade Agreement with Europe.
The director of Bancomext concluded by recommending Mexico through three lines of business: as an importing market, as a recipient of direct investment for the creation of companies in the country, and as a platform for doing business with other countries in its geographic environment.
One of the most anticipated speeches was that of Joel Sampaio, the commercial attaché at the Brazilian Embassy, who focused on the importance of the negotiations currently underway between Mercosur and the European Union, which are in the final stages of development. However, Sampaio emphasized that Brazil and Mercosur are also involved in two other negotiating forums: the FTAA and the WTO Development Round. "These forums influence each other, and the concessions made are closely watched by the others," he stated. In the immediate future, Sampaio identified the challenge of reaching tariff agreements between Mercosur and the European Union, "because that's where the offensive and defensive interests of each bloc converge, making them the most difficult to reconcile." As an example, he cited the high competitiveness of Brazilian agri-food products, against which there are strong defensive barriers within the EU.
Sampaio also emphasized the influence of foreign trade on the country's economic stability: "If we don't have access to markets, we can't balance our payments," and cited Brazil's economic recovery after Lula da Silva took office as a model. "During 2003, we had the highest international trade volume in our history. This allowed us to achieve a positive balance of 4.000 billion dollars, which helped us to stabilize the state's finances."
The Peruvian market and its trade integration with other markets was another topic discussed at this roundtable. Raúl Salazar, Counselor at the Peruvian Embassy, introduced the attendees to the country's economic situation, noting its growth rate of approximately 4,6%. Salazar raised the challenge of further strengthening intraregional trade with neighboring markets, as it currently accounts for only 6% of the country's exports. Regarding relations with Spain, Salazar recalled the period when the privatization program attracted Spanish multinationals, making Spain the leading foreign investor in the Andean market. However, he called for a second wave of investment, facilitated by preferential trade agreements. The Peruvian representative mentioned the country's main potential sectors, such as agribusiness and industrial fishing. In this regard, he stated that some Spanish companies are already establishing operations in the country to cultivate raw materials, which they then export to the North American market.
For his part, the head of the Commercial Office of the Venezuelan Embassy, Carlos Lli Torrabadella, focused on trade integration among the countries in its economic sphere. Regarding Spanish investors in Venezuela, Lli highlighted several business opportunities. First, he spoke of the burgeoning raw materials processing market. "In this sector, there is room for Spanish SMEs or large companies seeking to market their finished products," he stated. He also brought up the major infrastructure development projects that will connect various South American countries. Finally, he discussed the path being paved by these same infrastructure projects, such as the improved communication with northern Brazil, where goods and services are being supplied from Venezuela at very low costs.
The Colombian representative, Ricardo Lozano, spoke about the enormous potential of the country, given its wealth of raw materials and the competitiveness of its labor costs. Regarding the presence of Spanish companies in Colombia, he mentioned that there are currently more than 200 companies operating in the country, primarily in the infrastructure and financial services sectors. He concluded by encouraging the businesspeople present to attend the Business Roundtable to be held in Cartagena next May, where they will be able to explore various supplier options in the Andean nation.
After studying the various analyses of each market, Fernando Puerto, Director of International Relations at the Spanish Confederation of Chambers of Commerce, shared his perspective on the American market from a global economic standpoint. "Among emerging economies, Asia is the fastest-growing region, followed by Eastern Europe, and then Latin America," he explained. According to his view, we are about to witness an acceleration of global economic growth that will positively impact the Americas. He identified Brazil and Mexico as driving forces of the Latin American economy. "In 2003, the situation in these two countries hampered growth, but the major economic variables are stabilizing, which bodes well for 2004." Fernando Puerto noted that large Spanish companies are already well-represented in the Americas, but primarily in the service sector. "The next step would be the manufacturing sectors, and here, efforts should be made to support small and medium-sized enterprises," he concluded.
The role of banks in Latin American international trade was the central theme of the presentation by Pedro Sanz, Director of Corporate Banking for the Americas Division of Santander Central Hispano, the largest financial group in the region. The speaker emphasized the need to reject the misconception that these countries are lagging behind in banking and highlighted the progress made in the fields of banking and new technologies. "Currently, both businesses and customers have access to online banking. The internet has facilitated a significant leap forward in these countries. Although payment systems are already very efficient, incredibly fast payment management tools have been developed."
The importance of logistics in free trade with the Americas was a topic addressed by Miguel Osuna, in his capacity as president of the Ibero-American Logistics and Trade Network (RILCO) and as the State's special delegate to the Cádiz Free Trade Zone. Osuna spoke about strengthening Cádiz as the primary point of contact for American companies exporting to Europe. "To achieve this, we have reached agreements with various American ports and free trade zones." He also discussed the tools that RILCO makes available to exporters. "We are prepared so that all export procedures and related ancillary contracts, such as obtaining insurance or documentary credit, can be completed online," he concluded.
The closing speaker was Manuel Gala, president of the CIFF Foundation, who concluded by discussing risk and accounting in Latin America. "We are in a position of clarity for companies to invest in Latin America; however, more information is needed for business leaders to place their trust in the region," Gala stated, adding that, nevertheless, the current business outlook is positive.
The panel concluded with a lengthy discussion, addressing issues such as the competition posed by Asia to these countries, and the implementation of free trade in America.
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