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VOUJME EI.EYE/Y NUMBER FOUR· APRIl. 199~ EXPORT TODAYsourH AMERICA BUlLDlNG ON THE TRADE BLOCS CHILE: KING COPPERBRAZIL AO STRATEGIES • FINANCE/PAYMENTSASSET-BASED LENDlNG COLLECTlONS •BEST WAYS INTO AFRICA . •EUROPEAN MARKETS WHICH SEAL DF APPROVAL? • TRANSPORTARABIAN CROSSROADS. THE NEW INTERMODAL STEW • ASIAINOONESIA INVESTMENT OISCOUNT JAPANKOREA: 7 BEST SECTORS • CANADA MANUFACTURING II
in Argentina, and has purchased one of Venezuelas two main breweries. Mercosur ai Work • Sancor, Argentinas leading dairy, has annonnced plans to invest $200 million over the bji Erica Aoki next three years to eÀ-pandcapacity in Brazil. • Tintas Reuner, a Braziliall paint company, The recent progress made by Mercosm"at a meeting at now makes paint in Argentina and UrUcouay. Omo Preto, Brazilmarks a new and important phase for the • Unisur, 1068-mile fiber opric cable that con- nine-year old common market agreement. nects Brazil, Argentina, and Uruguay, can handle The Ouro Preto Protocot wlúch was signed by the presi- 25,000 simultaneous conversarions and data dents of Argentina, Brazil, Paraguay and Uruguay, empow- transmissions. ered the organizarion to act on behalf of members in u"ade • General Motors Ís building a $100 million negotiations with other countries or groups of conntJ;es. plant to make 25,000 pick-up trucks per year for The protocol, which must still be approved by the congress the Mercosur region. of each counu:y, also made it easier for the plivate sectors of Man) companies are even beginning to make the four countries to take part in discussions, ",ith the cre- acquisirions across trade bloc bOTders. ation of the Social Economic Advisorv Forum. Chilean businesses have been particularly Mercosur has already had a huge effect ou trade in the active, especially in Argentina. For example, last region. lu the past three years, trade among the cormnon year, Banco OHiggins, a major Chilean bank, markets members grew by 150%. Brazils Mercosur trade bought 50% of Banco Popular AJ:gentino, and figures, for instance, l"Osefrom $4 billion in 1990 to $10 bil- Embotelladora Andina, Chiles Coca-Cola bottler, lion Ín 1994. Going back to 1986, when the first steps were paid $120 million for Brazils second largest bot- taken towards the common market, trade among the four tler. This activity should accelerate once Chile countIies has grown at an annual rate of 22%. reaches a formal agreement with Mercosur. Stilt much needs to be completed if Mercosur is to meet its For U.S. companies, Latin American integra- 1999 goal of fully free uade" E ven though some 7,500 prod- tion offers good opportnnities, particularly for ucts are uaded free of tariffs among the four members, intel- firms planning to mak.e direct investments. The lectual property codes need to be unified, free competition new trading blocs allow foreign firms to more eas- protected, consumer protection enacted, taxes and monetary ily plan on a regional basis. policies harmonized, legislation for foreign investments Also, should Mexico resume its grmvth, U.S. (hawn up and export incentives prepared. politicians may once again consider the expansion of NAFTA, which would lock in these advantages l.·ica Aoki ll/orks at the Washington offiees 0/ the for the future. ET Mill/zeapolis laU)jirm Dorsey & Whitney. $154.36 .S. Pop. Major Latin American Trade Agreements FromU.S. FromU.S. 141 toImports 97 to%ImpoTts 395Trade 41% 36% 17% 67% 62% 43% 45% $52.72 23% GNP $14.54 .S. 80% 67% $$65.04 372 8676 $141.81 198 $10.21 $22.72 $2.37 $49.46 $406 $66.63 $2.94 $142 $1162 $296.57 $6,960 $9.65 $9.35 $10.59 Intragroup $ Eúorts % ExJ0rts Notes:Population is in millions;G)Ij-P, intragroup trade, imports and exports are in $hillions;Import and export data for NAFTA are for both Canada and Mexico. Sources: World Bank, IMF, Technology Marketing Analysís22 EXPORT TOOAY APRIL 1995