The US is attempting to reassert its influence in the region in order to counter China’s massive engagement. The impact this will have on European companies remains to be seen.
Brussels has initiated the ratification process for the trade agreements with Mercosur and Mexico. The chances are good that this will be completed before the end of this year.
It is still unclear where the US customs policy toward the region will ultimately lead. The future of the EU’s free trade agreements with Latin America also remains open.
The port of Chancay in Peru could become a key driver for the development of cross-border infrastructure. Chinese investment is playing an important role in this.
Trump has “only” imposed the reciprocal minimum tariff of 10 percent on almost all South American countries. What is the reason for this and what consequences could it have for the region?
Even if he will still change his customs policy, the damage has already been done: Investors are unsettled and will reduce their investments in the country. This will affect German companies in particular.
Because of Trump, the region will seek to expand relations with other partners. China in particular will benefit from this, but Europe also has the opportunity to strengthen cooperation.
President Milei has stabilized the country in a serious crisis. Now he must continue his reform course. A further recovery of the continent’s second largest economy would be important for South America.
Investors are showing a surprisingly high level of interest in new concessions. The government now wants to increase the proportion of private participation in them.
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