Latin American Trade and South-South Cooperation

During 2016, Colombia exported a total of US$30.2 billion and imported US$42.9 billion, for a trade deficit of US$12.6 billion. However, the great majority of Colombia’s trade was with countries in the Western Hemisphere and in the Asia Pacific region. Throughout most of Latin America, there is still a long way to go as it relates to south-south integration within the region, with South Asia, and with Africa. Only US$227 million of Colombia’s exports in 2016 were destined towards Africa, mainly the Ivory Coast, Ghana, and South Africa. Similarly, merely US$108 million in imports from Africa made it into Colombia during 2016, mainly from Morocco, South Africa, and Egypt. In the case of Colombian exports towards the Ivory Coast, these consist principally of crude oil. Meanwhile, Colombian imports from Morocco mainly consist of calcium phosphates and other phosphates.

Latin American Trade and South-South Cooperation

Nevertheless, the case of Colombia is not isolated. Even a major Latin American trading hub like Panama only exported US$3.2 million, less than 1% of its total exports during 2016, towards Africa. Likewise, in 2016, Panama merely imported US$11.1 million from Africa, less than 1% of the country’s aggregate imports that year. In the case of Panama, most African imports came from Egypt, South Africa, and the Mauritius Islands, while most exports went to South Africa, Benin, Ethiopia, and the Ivory Coast.

Chile is yet another example of this trend. The South American nation imported US$57 billion in 2016, yet only US$119 million came from Africa. Furthermore, that same year, Chile exported US$58.5 billion, but merely US$245 million went to Africa. Chile’s main export destinations in Africa are South Africa, Namibia, and Egypt, while the main origins of African imports are South Africa, Equatorial Guinea, and Morocco. During 2016, Chile’s main imports from South Africa were fruit juice, ferroalloys, and excavation machinery. That year, Chile principal exports towards South Africa were chemical products, such as nitrates, nitrites, and fertilizers.

In the case of Latin America’s largest economy, Brazil, the country exported a total of US$182 billion in 2016 as well as imported US$135 billion, resulting in a trade surplus of US$46.4 billion. However, that same year, Brazil only exported US$7.8 billion towards Africa, mainly to Egypt, South Africa, Algeria, and Nigeria. Simultaneously, in 2016, Brazil imported US$4.6 billion from Africa, mainly from Algeria, Nigeria, Morocco, and South Africa. Interestingly, Brazil’s main imports from Algeria are refined and crude petroleum.

Lastly, during 2016, Latin America’s second largest economy, Mexico, exported a total of US$373 billion and imported US$380 billion, for a trade deficit of US$6.6 billion. Nevertheless, Mexico’s imports from Africa in 2016 accounted for US$953 million and exports towards Africa totaled US$857 million. In terms of exports, Mexico’s main African partners are South Africa, Algeria, Egypt, and Zimbabwe. Meanwhile, in terms of imports, Mexico’s main African partners are Morocco, South Africa, Nigeria, and the Ivory Coast.

(Read more about The Consumer Class and Coffee Markets in Colombia)