Latin America is a region with huge potential. It offers significant opportunities for Victorian businesses to diversify beyond traditional economic partners.

The Victorian Government has a long-standing commitment to diversification and growing its engagement with Latin America. Our Trade and Investment office in Santiago, Chile was established in 2016, and we continue to build on objectives outlined in Victoria’s Globally Connected Latin America Trade and Investment Strategy released in 2018.

Latin America is a middle-income, highly urbanised region with strong potential for experienced Victorian exporters. The region is a leader across key industries that are crucial to the global economy – it is rich in mineral resources and arable land and has huge renewable energy potential. Latin American businesses are dynamic and resilient and are always looking for innovative solutions to improve efficiency, productivity, and sustainability.

Latin America’s technology space has experienced a boom over the past few years. Emerging verticals such as Fintech, Agtech and Education Technology have received record investments and are transforming the way of doing business and learning in the region.

The push for a global energy transition has prompted significant investment flows into the mining and resources sectors, where Latin America ranks as a strategic supplier. With vast wind, solar and hydroelectric potential, the region is positioning itself as a clean energy powerhouse. Also, a fast-growing middle class has resulted in increased demand for premium products, including in the food and beauty sectors.

Australia has long-standing and growing ties with the region. The country has free trade agreements with Peru and Chile, and free trade links with Mexico were established recently with the adoption of the Comprehensive and Progressive Trans-Pacific Partnership

Australia and Latin America are connected through direct flights from Chile and North America.

Key industries of opportunity for Victorian exporters

Latin America is a traditional mining and resources market with world-class operations spanning across the continent.

The region is a global leader in the extraction of copper, gold, silver, lithium and other minerals of significance to the world’s economy. Over the past three decades, several world-leading Victorian-headquartered mining companies have established operations in Latin America (primarily Chile, Peru, and Ecuador).

With the support and in-market expertise of Global Victoria’s team in our Santiago office, a growing number of Victorian mining engineering, technology and services (METS) companies have secured business opportunities in the region, through trade programs and bespoke support.

Agribusiness in key Latin American markets, including Brazil, Argentina, Chile, Peru and Uruguay, is capital-intensive and operated by highly sophisticated and competitive corporate players, which have successfully integrated into global agri-food supply chains.

These operators are early technology adopters and are increasingly seeking to improve productivity, sustainable farmland management and traceability applications.

The impact of climate change on weather patterns and water availability has prompted significant investment in new technologies to ensure efficient management of water and environmental resources. Demand from European and Asian buyers are requiring Latin American agri-food exporters to improve sustainability and traceability standards by incorporating new technologies.

With a quarter of the region’s electricity coming from renewable sources, Latin America has historically been a leader in renewable energy. As global climate action picks up and the trend towards net-zero consolidates, the region is expected to become a hotspot for renewable energy investment.

A combination of vast renewable resources, disruption across global energy markets and domestic policy signals has resulted in the acceleration of the clean energy pipeline in the region. Countries such as Brazil and Chile have launched ambitious clean hydrogen strategies and several large-scale projects are currently in the pre-feasibility, feasibility and construction phases.

Latin American students are an important and vibrant contribution to Victoria’s classrooms and communities. The Victorian Government's Trade and Investment office (VGTI) in Santiago actively promotes Victoria’s world-class education opportunities, and Victorian institutions achieve joint research partnerships with Latin American counterparts, including in the areas of sustainability, climate change, agriculture, water management and energy.

Countries like Colombia and Brazil are major sources of international students in Victoria. Other markets of high potential include Mexico, Chile, Peru and Argentina.

Latin America’s digital landscape is transforming rapidly. The region has the highest rate of urbanisation in the world and fast-growing levels of connectivity.

The fintech sector is one example of a vertical that has experienced rapid growth in recent years, as millions gain access to banking services through new digital platforms. Brazil is a world-leading fintech market and Mexico and Chile are also growing at a rapid pace. In Chile, a new Fintech Law was approved by Congress in October 2022 creating greater clarity on the regulatory framework for the sector.

A sophisticated and social-media-savvy consumer market also presents opportunities for Victorian digital technology companies across a range of segments.

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