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Six Reasons to Look South to Mexico and Central America’s Infrastructure Build-Out

August 21, 2015

Erin Aucar recently completed an internship with the International Trade Administration’s Office of the Western Hemisphere

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Infrastructure is the buzzword for companies looking for new business opportunities in Latin America.  The region is undergoing a major infrastructure build-out as economies and populations grow.  Large scale public-private partnership projects in the transportation sector abound, particularly in roadways, airports, and ports.  Numerous opportunities exist in related industries as well, such as renewable energy, water resources, environmental technologies, rural development, aircraft parts, building parts, and more.  If your company works in or supplies the infrastructure sector and its many related industries, this is an opportunity not to be missed!

This September 9th ITA’s Commercial Service Office in Denver is hosting an event to introduce your company to the latest infrastructure opportunities in Mexico and Central America as part of ITA’s Look South initiative. Here’s why you should attend:

  1. Mexico is committed to investing in infrastructure. The Government of Mexico has initiated a series of major reforms known as the National Infrastructure Program (PNI) which includes major projects intended for execution through 2018. For example, the PNI identifies 84 discrete projects in the water sector and 118 electricity sector projects. They are also in the midst of mega transportation projects such as expanding the Metrorail systems and the Mexico City airport. Read more in the U.S. Trade and Development Agency’s Mexico Project Resource Guide.
  2. El Salvador is modernizing its infrastructure with help from multilateral development banks. El Salvador has numerous ports, roads, and airports under expansion, upgrade, or development. Most projects are financed by multilateral development banks such as Inter-American Development Bank, Central American Bank for Economic Integration, as well as foreign development agencies or assistance programs including Millennium Challenge Corporation. Representatives from the Inter-American Development bank will be on hand at the event to discuss the $2.4 billion in approved projects the Bank is financing in El Salvador.
  3. Honduras is a renewable energy star! Honduras is ranked 20th worldwide in ITA’s Top Markets Report for renewable energy exports, and 7th for wind energy exports. The Honduran government is promoting renewable energy projects and offering various incentives for its development.
  4. Guatemala is a team player, working with other Central American nations to advance regional infrastructure. In April 2014, Guatemala signed an agreement with Mexico to build a natural gas pipeline linking both nations and enabling distribution of fuel throughout Central America. Honduras has also signed on to help develop the project which is valued at approximately $1billion and will be bid on in 2016.
  5. Our Free Trade Agreements (FTAs) with each of these markets give your company a leg-up. FTAs offer benefits, like zero tariffs, to exporters and protections for investors in partner countries. Our FTAs have transformed Mexico and the group of six Central American countries that form CAFTA-DR into some of our principal trading partners. Together CAFTA-DR ranked 13th largest among U.S. export markets in the world in 2014, and the 3rd largest in Latin America behind Mexico and Brazil.

CS Denver’s September 9th event will introduce your company to the latest projects in each of these markets.  Experts will discuss procurement opportunities, bidding requirements, how to qualify, sources of financing, and more!  Participants will have the chance to meet one-on-one with representatives from the Inter-American Development Bank, Minority Business Development Agency, the U.S. Trade and Development Agency, and Commercial Service in Mexico and Central America to discuss opportunities for their company and get their questions answered.  Sign up today!

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