COVID-19 / CORONAVIRUS MARKET UPDATE – LATIN AMERICA

General region overview

Latin America has become a global epicentre for the COVID-19 outbreak. As of early June, two-fifths of new confirmed Covid-19 cases and related deaths occurred in Latin America.

There is a high disparity in testing within Latin American countries. Chile and Peru have the highest rates of infection per capita, however this is partly because of their aggressive testing approach relative to other Latin American countries. The lowest levels of testing are in Brazil and Mexico, the largest and most populated countries. The Governments of Brazil and Mexico have also been relatively slow to acknowledge the gravity of the situation, and their severely stressed healthcare systems are at breaking point.

All countries in Latin America are applying border and travel, quarantine, health and mass gathering controls in an attempt to mitigate effects and control the spread of the virus – although this is happening at differing levels from country to country.

The consensus is that the worst is still to come for Latin America, and the outbreak is expected to spread further, according to a report by The Economist.

An increasing number of large tradeshows in Latin America have been cancelled. In light of increased mass gathering controls, NZTE expects the number of cancellations to increase in the short term. This is also flowing to individual companies instigating controls on their staff from travelling (both domestic and international) or attending meetings in person.

For more information on doing business in Latin America, visit myNZTE - our free online portal for curated, in-depth information and guidance. 

Useful links to media coverage:


Economy and trade

Many Latin American countries have already begun easing their COVID-19 restrictions, despite the growing pandemic experienced in many regions. This is in part due to a lack in fiscal and institutional capacity to provide sustained support to consumers and businesses in lock down, many of whom operate in the informal sector. Each country is looking at what sectors and industries they begin to open up, balancing the need to open up the economy while also trying to avoid increasing COVID-19 infection rates.

Latin American markets are relatively modest in terms of New Zealand food and beverage exports, outsourced manufacturing, and investment, compared to other global markets including those in Asia. Exports to Latin America and the Caribbean totalled NZ$1.27 billion in the year to June 2019.

However, there are some commercial sectors where Latin American markets are important for commercial sales or the supply of goods and raw materials to New Zealand businesses. There is potential for this trade to be impacted by the COVID-19 pandemic.

Latin America and the Caribbean have significant economic links to China, particularly through trade, foreign direct investment and loans. The flow-on effects from the impact of COVID-19 in China to Latin America and the Caribbean are hard to estimate. China mainly imports primary products such as minerals and metals, agricultural products, and fuels from Latin America. Not all countries in the region are equally exposed, but Brazil (28.1%), Argentina (11.5%) and Chile (32.4%) send significant proportions of their exports to China.

The World Bank has forecast a contraction of 4.6% in the regional GDP of Latin America and the Caribbean (excluding Venezuela). A return to growth of 2.6% is expected in 2021. The World Bank caveated these forecasts as it is based on latest country level data available as of 10 April 2020. Economic circumstances are fluid in the region and are changing on a day to day basis.

Travel

Travel to Latin America is getting more difficult by the day as airlines cease or alter their services.

Air New Zealand ceased its Auckland to Buenos Aires service on 18 March. LATAM has also ceased its service connecting Santiago, Chile to New Zealand and Australia as the airline announced 95% reduction in its services from early April. Air services to Mexico and Central America via the US are also being impacted by ceased or altered flight schedules.

Whilst some New Zealand companies travelled in early March to Latin American markets to maintain commercial links, this is no longer a viable option.

Given the varying travel restrictions in-market, and official New Zealand Government advisories about international travel, NZTE encourages companies to consider other communication options and channels to maintain commercial ties with partners in Latin America.

As of 20 March 2020, all travellers returning to New Zealand are subject to a mandatory 14-day self-isolation period, and must register with Healthline via 0800 358 5453.

Please refer to Safetravel for the latest official advice on travel to Latin American countries or other world locations: safetravel.govt.nz.

Tradeshow and event information

Numerous international tradeshows and events are being postponed or cancelled in response to the COVID-19 pandemic.

Make sure you proactively check with organisers for any tradeshow or event you're scheduled to attend – conditions and regulations are changing rapidly overseas, and events may be postponed or cancelled at short notice.

Below is the status of major tradeshows and events in Latin America that NZTE's teams are aware of.

If you have questions about an event not listed here, please contact the organisers in the first instance or get in touch with NZTE for further advice.

  • Colombia, Inter-American Development Bank (IDB) Conference - postponed to November 2020.

  • World Economic Forum, 28 April 2020 - postponed.


Market overviews

Argentina

Updates on COVID-19 impacts in Argentina.

Brazil

Updates on COVID-19 impacts in Brazil.

Chile

Updates on COVID-19 impacts in Chile.

Colombia

Updates on COVID-19 impacts in Colombia.

Ecuador

Updates on COVID-19 impacts in Ecuador.

Mexico

Updates on COVID-19 impacts in Mexico.

Additional resources

Below you can find information and contact details for other New Zealand government and international agencies regarding their response to COVID-19.

New Zealand Government agencies

Covid19.govt.nz
COVID-19 helpline for businesses
Business.govt.nz
New Zealand Customs
Ministry for Primary Industries (MPI)
New Zealand Export Credit (NZEC)
MFAT Export Helpline
MFAT Safetravel
Callaghan Innovation
Immigration
Ministry of Health
WorkSafe New Zealand
myNZTE

Global agencies

World Health Organization (WHO)
Centers for Disease Control and Prevention (CDC)

Contact NZTE

We're available to talk to you about any issues your export business is facing due to COVID-19.

For existing NZTE customers, please contact your New Zealand-based Customer Manager.

If you're unsure who to contact or haven't worked with us before, you can call NZTE on 0800 555 888 or email below and one of our Customer Advisors will help you.