Latin America Reaffirms Its Openness to Trade: Stability and Opportunities for Global Investors

Over the last decade, Latin America has consolidated a network of treaties and bilateral agreements that strengthen its position as a strategic partner for the United States, Europe, and Asia. Countries such as Colombia, Chile, Peru, and Brazil have maintained a pro-trade stance, reinforcing their role as reliable destinations for foreign investment and as expansion platforms to the rest of the continent. 

The recent case of Colombia simply reaffirms what is already evident across the region: Latin America remains an open, competitive, and stable market, even in the face of external tensions or political fluctuations. This institutional consistency sends a clear signal to investors that the region continues to be ready to grow alongside international partners. 

Latin America: competitive tariffs and a favorable environment for expansion  

Currently, while economies in other regions are moving toward more protectionist policies, Latin America stands out for maintaining moderate tariff levels and increasing economic integration. 

To understand why, it is worth taking a moment to explain a key concept: the average tariff rate. This indicator shows how much imported products increase in price, on average, due to the taxes or tariffs applied by each country. In simple terms, it reflects how easy or costly it is to trade with a region. A low rate means greater openness and international competitiveness, while a high rate indicates more barriers and higher costs for companies. 

According to the World Bank (WITS) and the World Trade Organization (WTO), the average tariff rate in the region is around 3.6%, making it one of the most open areas to global trade. This facilitates the flow of goods, reduces import costs, and improves competitiveness for companies that operate from or toward Latin American countries, where infrastructure and regulatory frameworks are advancing toward greater regional convergence. 

Latin America as a strategic hub for nearshoring and relocation

In this context, Latin America is consolidating its position as a key region for international expansion and nearshoring models, supported by competitive advantages that generate direct value for global companies. Among these advantages are: 

• Geographic proximity and shared time zones with the United States and Canada, which allow companies to coordinate operations in real time, accelerate decision-making processes, and improve the efficiency of distributed teams. These conditions foster collaboration and reduce costs associated with managing remote projects (Auxis, 2024). 

• Competitive operational and labor costs, which represent savings of between 30% and 40% compared to traditional offshore models. The region combines affordable costs with a highly skilled workforce, offering greater budget flexibility and sustainable scalability (4Geeks, 2024). 

• Expanding logistics and technology networks. Latin America has strategic hubs in Lima, Bogotá, Santiago, and São Paulo that strengthen air, maritime, and digital connectivity. According to J.P. Morgan Private Bank (2024), advances in logistics infrastructure are positioning the region as a natural bridge between North America and southern markets. 

• More predictable regulatory environments and investment-friendly policies, driven by free trade agreements and reforms that facilitate the establishment and operation of foreign companies. Countries such as Chile, Peru, Colombia, and Brazil lead these efforts, prioritizing macroeconomic stability and legal security (White & Case, 2023). 
• Qualified talent and cultural affinity, with professionals who combine technical expertise, English proficiency, and knowledge of the North American business environment. This human factor makes the region an ideal setting for hybrid teams and collaborative global projects. 
  

The conditions mentioned above position Latin America as a strong and reliable alternative for companies seeking to diversify their supply chains, reduce dependence on Asia or Europe, and bring their operations closer to key consumer markets. 

Final reflection: stability that translates into real benefits

The recent trade episode between the United States and Colombia left a lesson that goes beyond borders: the institutional stability and regional commitment of Latin America generate confidence and tangible results for international companies. 

In practice, this means: 

• More predictable import costs, allowing companies to plan budgets with greater certainty. 

• Better supply chain planning, supported by stable tariff frameworks and reduced risk of disruptions. 

• Greater viability for nearshoring and regional expansion models, enabling more agile and sustainable operations. 

In other words, Latin America’s commercial stability not only strengthens investor confidence but also translates into operational efficiency, risk reduction, and sustainable growth. However, for these benefits to materialize, it is essential to understand the local regulations, foreign trade policies, and labor and tax frameworks of each country. 

Having this knowledge allows companies to anticipate regulatory changes, optimize import and export costs, plan their supply chains more accurately, and take advantage of the incentives each market offers. In this way, stability stops being merely a macroeconomic context and becomes a real, measurable competitive advantage. 

At Ongresso, we help international companies leverage the potential of Latin America with clarity, compliance, and long-term vision. 
With over 20 years of experience in the region, we support our clients every step of the way, from strategic planning to local operations. Because at Ongresso, we don’t just open markets; we open possibilities. 

Do you want to understand how the recent trade announcements could impact your strategy in the region?  Schedule a session with one of Ongresso’s experts and discover how to leverage Latin America’s competitive advantages to drive your global growth.