Business environment & trade Food-producing powerhouse Latin America is a global food-producing powerhouse with sourcing opportunities for almost every food and drink category. By 2028, the region will account for more than 25% of global exports in agricultural and fisheries products, according to the Food and Agriculture Organization (FAO).26 During the COVID-19 pandemic, efforts focused on ensuring business as usual. Agriculture ministers across Latin America pledged to reactivate food production in the post-pandemic period27 and industry experts praised Brazil for maintaining production and exports during the worst of the COVID-19 pandemic. Andy Duff, head of food and agribusiness research for Rabobank South America, said:
“Global perception of Brazil as a reliable supplier should receive a boost given its strong performance as a producer, processor, and exporter during the crisis. Farmers and companies have had their business models severely tested and have learned valuable lessons that will lead to greater strength and resilience in the future.” 28
Harmonisation on the horizon There are three main trade blocs in South America. Mercosur is composed of Argentina, Brazil, Paraguay, and Uruguay (Bolivia’s membership is pending while Venezuela has been suspended since 2017); the Pacific Alliance is composed of Chile, Colombia, Mexico, and Peru; and the Andean Community (CAN) is composed of Bolivia, Colombia, Ecuador, and Peru. These trade alliances have introduced some levels of harmonization for food and beverage companies operating in the region. Mercosur, for instance, has harmonized its food additives and general food and nutrition labelling regulations for foods and beverages, with these regulations currently under review. When approved, Mercosur countries will be required to implement the bloc’s harmonized regulations at a national level.29 Today, organic food producers in Argentina, Chile and Costa Rica can export their produce to the EU without the need for third-party certification as their organic standards are considered equivalent to those in the EU. 30
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