Opportunities inLatin America

Engagement WebinarBrazil & Mexico

The new Latin America

• Political changes in many key markets are opening up Latin America for business.

• The Latin American market is 500 million people. There are attractive export opportunities in sectors such as Oil & Gas, Mining, Healthcare, Education, Financial Services & more.

• Positive progress in, ‘ease of doing business’. Key countries are evolving their business environment

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Political changes are boosting opportunities3

• Stable and expanding MEXICAN economy and a new legal framework for investment in the massive Oil & Gas and related sectors.

• New ARGENTINE government, liberalising trade and pursuing major investment plans in infrastructure and natural resources.

• New business confidence and emerging opportunities in COLOMBIA following conclusion of the peace process

• Major structural reforms in VENEZUELA will present opportunities in natural resources, healthcare, education, infrastructure and utilities

• US restoration of diplomatic ties with CUBA boosting international business activity and strengthening market reforms

• Conclusion of an EU Free Trade Agreement with ECUADOR will generate new UK export opportunities

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Attractive Export Opportunities 4

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Attractive Export Opportunities- Healthcare

• Verified pipeline of £77bn of healthcare trade opportunities in Latin America including Brazil and Mexico

• Bi-lateral government to government agreements that provide the inside track on government projects

•Infrastructure, medical devices and equipment and PPP opportunities (including facilities management, clinical service design and provision of shared services)

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Attractive Export Opportunities- Financial ServicesBrazil & Mexico•With an estimated export potential of £4bn over the next 5 years the key subsectors are: Fintech, Asset Management, Insurance & Reinsurance, M&A, Infrastructure Finance and public listings.

• Key demands: Foreign investment & pensions management; innovative FinTech; Infrastructure Finance for PPPs; UK IPOs and bond issues; private equity services; insurance & reinsurance.

• UK government is engaging in high level lobbying on further opening the Financial Services market, led by the Lord Mayor, HMG ministers and Trade Envoys.

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Attractive Export Opportunities- Education

• With a market estimated at £46bn per year, 49.8m students currently enrolled in K-12 (9m in private schools) and more than 7m students in Higher Education (5.3m in private universities), Brazil is the second biggest private education market in the world. Mexico has the second largest Education System in Latin America, with 38 million students across all levels. •The key sectors for TVET and Higher Education in the region are mining, oil & gas, rail and automotive, tourism and hospitality, agriculture, science and research.

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Attractive Export Opportunities- Oil and Gas

• Oil & Gas represent significant opportunities in both Brazil and Mexico.

•Government tenders for private partners to state oil giants Pemex and Petrobras in exploration and extraction ventures.

•19bn barrel reserve and increasingly productive pre-salt fields in Brazil, 12.6bn USD investment in Mexico per annum in round 1 exploration/extraction open tender.

•Key demands for deep water and subsea expertise/ technologies; EOR / Repair and Maintenance; industry training.

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Attractive Export Opportunities- Airports• Mexico City airport - £9 billion

• Set of 21 tender packages to be launched between Sept 2015 and April 2017 • First stage of MC airport to begin operations in 20th October 2020

• In Brazil, new concession round announced worth £1.5 billion in private sector investment from for 4 airports:

1)Porto Alegre 2)Florianopolis 3) Salvador 4) RecifeOpportunities in: Master Planning; Project and Cost Management;Feasibility & Demand Studies; Structural Design & Engineering; Security;

Cargo Handling Services & Lean Operations;Design & Use of Sustainable Technologies; Real Estate; Operation

Technologies.

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The demand is out here in Brazil….you could be too!!10

Defence and Security : pursuing three Campaigns in Brazil related to its Maritime, Aerospace and Cyber Security components to win the largest slice possible of potentially £100bi (2035) and £6bi (2025) defence programmes respectively, and a security market that has enjoyed 9% annual growth and a £15bi turnover.  The Brazilian cyber security market, difficult to penetrate but potentially rewarding, is expected to grow to £5.2bi by 2019. Marine : The critical needs are: paints, antifouling and anti-corrosion; ballast water treatment; flooring systems; HVAC/ AC systems; valves; propellers; marine service equipment; fire safety systems; electrical equipment: switchgear, switchboard and related; winches; pumps and dynamic positioning.

The demand is out here in Brazil….you could be too!!11

Water and waste: Water supply and sewage improvements in Sao Paulo, Rio, Minas Gerais and the Northeast; Cleaning up the Doce river in Minas Gerais; New PPPs on municipal solid waste.Demanding UK expertise in: advisory and engineering services; quality water delivery; water treatment; desalination processes; storage and distribution; leakage detection.

High tech and innovative products: Are always in demand in all of the above sectors but also in agriculture, aerospace, automotive and mining.

Food & Drink/Retail: Due to high import tariffs luxury segment products are most likely to sell well.

The Demand is out here in Mexico….you could be too!!12

Luxury retail; Mexico is Latin Americas largest/fastest growing luxury market, there are large scale retail projects planned for the next five years across the country. 2015 saw the arrival of UK icons such as Ted Baker, Karen Millen and Hamleys and expansion of Thomas Pink, Hackett, Ben Sherman, Burberry, Phase Eight, Pepe Jeans, Whittards of Chelsea, Twinings.

Food & Drink:Food and drink imports into Mexico have a strong forecast growth rate.Mexico is North America’s second largest market for Scotch Whisky valued at £110 million. Main UK exports to Mexico include: Spirits, confectionary, beer & cider, tea, condiments and conserves. Mining; Largest silver producer in the world; top 10 producer of gold, fluorite, bismuth, sodium, copper and zinc; 20 large scale active mining projects. Average annual investment of around USD $6 billion; opportunities in: construction and mining equipment, power generators, engineering and environmental services.

The Demand is out here in Mexico….you could be too!!13

Automotive; This sector is a UKTI priority in Mexico; 7th largest light vehicle producer, 6th heavy vehicle manufacturer and 4th largest auto-part manufacturer; highest growth rate from the top 10 largest vehicle manufacturing nations. Opportunities in; low carbon & leading edge technologies, low emission buses, manufacturing technologies (machine tools, press tools, machinery, power generation, metrology and instrumentation), automation equipment, specialized metals and alloys, composites, steel casings and stainless steel.Defence & Security; The need for innovative, specialised and sustainable security and defence equipment and systems is a large expanding area reflected in the Mexican Federal Public Security and Defence Strategy. Opportunities in; cyber security/defence solutions for the public and private sectors; Refurbishment of various defence fleets/maintenance contracts; Surveillance, Counter Intelligence, Forensics; New Mexico City Airport security package; High security prisons refurbishments; New Defence Ballistics Forensics Centre

How to succeed in the mega markets

• Mega markets should form part of your long term strategy for exports growth.• Invest in:

Relationships- with partners, distributors, key customers

Expert advice- tax, legal, customs• Build the higher cost of doing business into your planning.

- Think about marketing and after sales care. • The pace and ease of doing business is different to other markets, however perseverance and persistence pay off.

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Exporting is GREAT – Opportunities in Latin America

The demand is out here in Latin America….. …..you could be too

Latin America will go to:  Chester Le Street Friday 13 MayCambridge Monday 16 MayLondon Tuesday 17 MayReading Wednesday 18 MayBristol Thursday 19 May Hinckley Friday 20 May

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Register or Contact us

• Register here: Exporting is GREAT – Opportunities in Latin America

•Contact us here:Lauren Frater, Regional Director São Paulo, UKTI BrazilTel: +55 11 3094 2721 | Mobile: +55 11 98451 4888 | E-mail: lauren.frater@fco.gov.uk

Stephen Cartwright, Director UK Trade & Investment MexicoTel: +52 (55) 1670 3249 | Mobile:+52 (1) 55 5419 8737 | E-mail: Stephen.Cartwright2@fco.gsi.gov.uk

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