With the strong bond between Trump and Milei as a backdrop, a trade agreement between the United States and Argentina may be on the horizon. On January 20, Donald J. Trump will assume the presidency of the United States for the second time.

This event is historic: only Grover Cleveland had previously served two non-consecutive presidential terms (1885–1889 and 1893–1897). Trump’s victory was remarkable, not only for the number of votes but also for enabling the Republican Party to win the popular vote while in opposition for the first time since 1980, when Ronald Reagan defeated the incumbent, Jimmy Carter.

For Argentina, Trump’s new administration signifies a phase with more local implications than usual. The relationship between the United States and Argentina is crucial in four major areas.

Key Areas of Bilateral Relations

First, the two nations share significant bilateral trade in goods. The United States is Argentina’s third-largest trading partner, close behind China. In 2024, the United States received $6.8 billion in Argentine exports (7.7% of Argentina’s total exports) and accounted for $7 billion in Argentine imports (10.5% of total imports). Argentina’s exports to the United States mainly consist of minerals, metals, and food industry products, while imports from the United States primarily include chemicals, machinery, equipment, and minerals.

Second, the global economy increasingly emphasizes the importance of trade in services. The United States is the largest destination for Argentina’s service exports, followed by Brazil and Uruguay. In 2023, Argentina’s service exports to the United States amounted to $4.5 billion, representing over 25% of total service exports.

Third, the United States leads Argentina’s foreign direct investment (FDI), focusing on minerals, manufacturing, and communications sectors. The U.S. investments in Argentina are approximately $28 billion, accounting for 19% of all foreign investment.

Fourth, the United States is a critical source of financial decisions and ratings for Argentina, influencing access to global financing.

Opportunities for Strengthening the Relationship Between the United States and Argentina

The intensity of the bilateral relationship could improve significantly. The potential is vast. Argentina ranks among the five countries globally with the lowest share of international trade in its economy and the lowest ratio of foreign investment to GDP in the region. Meanwhile, the United States is the world’s largest importer, the top global investor, the leading financier, and the main voting power in the International Monetary Fund (IMF), holding 16% of votes.

Under Trump’s second administration, Argentina may face various scenarios. On the one hand, the incoming Republican administration is expected to support Argentina in securing a new IMF agreement. Trump’s victory has altered the tone of Argentina’s negotiations with the IMF. On the other hand, the strong personal rapport between Trump and Milei establishes a significant political foundation. This relationship bolsters the Argentine government’s domestic position, enhances the financial world’s perception of Argentina, and improves prospects for real-economy investors.

Geopolitical Implications of Trump-Milei Relations

From a geopolitical standpoint, Trump’s and Milei’s alliance is poised to be influential, especially given the lack of other strong U.S. allies in Latin America. The incoming Secretary of State, Marco Rubio, will be the first Latino (of Cuban heritage) in this role, bringing a heightened sensitivity to regional issues.

A recent World Economic Forum study, Geopolitical Rivalry, and Business reveals that businesses now prioritize geopolitical conditions over other concerns, such as environmental or ESG standards. Similarly, a UNCTAD report shows that in the past two years, global trade grew by 6.2% among geopolitically aligned nations while declining by 5.7% among those with distant relations.

In this context, President Javier Milei has expressed interest in negotiating a Free Trade Agreement (FTA) with the United States, though this ambition faces significant challenges.

Challenges to a Trade Agreement

Formal constraints imposed by Mercosur present a significant hurdle. Holding Mercosur’s pro tempore presidency, Argentina is set to push for this initiative, likely sparking intense debates within the bloc. Furthermore, Trump’s historical stance on trade does not favor open markets, complicating the pursuit of an FTA.

While Trump may advocate for preferential relations favoring allies over adversaries, an intermediate solution might emerge, such as an economic cooperation agreement. This approach could enhance bilateral trade conditions in areas of mutual interest, such as technological services, energy, or minerals.

Potential Risks in the Relation Between the United States and Argentina

Despite opportunities, potential risks remain. Trump has publicly expressed his intent to impose tariffs on imports, which could negatively affect Argentina’s trade with the United States. Such measures could also exacerbate global economic conditions, leading to higher inflation in the U.S., increased interest rates, a stronger dollar, and disruptions to global supply chains.

However, Trump’s unpredictability and his administration’s diverse composition—featuring both proponents of higher tariffs and advocates of freer trade—leave the medium-term policy direction uncertain. Recent reports from The Washington Post suggest that tariff plans may only target critical imports, aligning with analysts’ views that these policies are negotiation tools rather than definitive ideological stances.

At the same time, the Trump administration’s intention to significantly reduce internal regulations and taxes may lower operational costs in the U.S., creating international ripple effects. This shift could present challenges and opportunities for the relationship between the United States and Argentina.

Conclusion: A Complex Yet Promising Bilateral Future

As this new chapter unfolds, the relationship between the United States and Argentina is poised to enter a complex and dynamic phase. While opportunities abound, they come with risks. Success will depend on Argentina’s ability to navigate these complexities, forging a comprehensive and mutually beneficial partnership.

Significant challenges and opportunities have marked the transformation of foreign direct investment in Colombia. By the end of 2024, the foreign direct investment (FDI) landscape reflected global economic headwinds, geopolitical tensions, and elevated interest rates. These factors contributed to a notable contraction of 18.32% in FDI inflows, with Colombia receiving USD 9.979 billion compared to USD 12.217 billion in 2023. Despite this downturn, Colombia remains an attractive destination for investors in Latin America, ranking fifth in the region according to the OECD. Emerging opportunities in 2025 and strategic actions are poised to position Colombia as a regional leader in attracting foreign capital.

Resilient Sectors and Emerging Opportunities

While 2024 saw an overall decline in FDI, specific sectors demonstrated remarkable resilience. The mining and energy sector accounted for 71.8% of total investment, amounting to USD 7.143 billion. However, regulatory uncertainty and declining natural gas production impacted investor confidence. With improved regulatory clarity, this sector is expected to regain its appeal. Additionally, emerging industries such as technology, sustainable manufacturing, and strategic minerals for the energy transition present significant growth prospects for the future.

These evolving dynamics heavily influence the transformation of foreign direct investment in Colombia. Ricardo Triana, the Executive Director of the Council of American Enterprises (CEA), emphasized the critical need for legal security, removing bureaucratic barriers, and fostering effective dialogue between the government and the private sector. These measures are indispensable for enhancing Colombia’s attractiveness, especially in the context of nearshoring—a regional trend gaining traction across Latin America.

Nearshoring: A Key Strategy for Growth

Nearshoring represents a unique and transformative opportunity for Colombia. This strategy, which involves relocating operations closer to primary markets such as the United States, positions the country as an ideal destination. Colombia’s strategic location, with access to the Atlantic and Pacific Oceans and its youthful, skilled workforce, makes it a preferred choice for investors. Cities like Bogotá and Medellín are already emerging as leaders in competitive logistics infrastructure, creating favorable conditions for the arrival of new investments.

Technology is another sector with immense potential. International investors are increasingly drawn to Colombia’s tech hubs and burgeoning startup ecosystem, recognizing the country as a rising center of digital innovation in the region. These developments complement the expansion of renewable energy projects and advanced manufacturing initiatives, aligning Colombia with global sustainability goals.

The growing interest in these forward-looking sectors further underscores the transformation of foreign direct investment in Colombia. With the right strategies and infrastructure, the country is well-positioned to leverage these opportunities and achieve long-term economic growth.

Challenges and Strategies for a Competitive Environment

Despite its advantages, Colombia faces significant challenges that could hinder its ability to attract foreign investment. Political and economic uncertainties and excessive bureaucracy continue to deter potential investors. The Colombian government is implementing initiatives to improve infrastructure, strengthen the judicial system, and simplify regulatory processes. These measures are designed not only to increase capital inflows but also to solidify international investor confidence.

Economic projections for 2025 provide further reasons for optimism. Colombia’s GDP is expected to grow between 2.4% and 3%, driven by a recovery in private consumption and increased investment in infrastructure projects. These factors could stimulate significant growth in traditional and emerging sectors, reinforcing the transformation of foreign direct investment in Colombia.

Collaboration between the public and private sectors is essential to sustain this momentum. By working together, these stakeholders can address persistent barriers and ensure Colombia remains competitive globally.

Collaboration and a Sustainable Future

The Council of American Enterprises (CEA) stresses the importance of close collaboration between public and private entities in fostering a favorable investment climate. Ricardo Triana highlighted that regulatory clarity and a renewed focus on innovation are critical to turning challenges into opportunities. Nearshoring, digital transformation, and sustainability initiatives offer a clear pathway to attract high-impact investments.

Moreover, the transformation of foreign direct investment in Colombia depends on creating a balanced approach that leverages the country’s natural resources, strategic location, and emerging industries. By embracing these strengths, Colombia can solidify its position as a regional leader in FDI attraction.

Although 2024 was a challenging year for foreign direct investment in Colombia, the country remains a top choice for investors due to its geographic advantages, abundant natural resources, and high potential emerging sectors. With targeted strategies and enhanced collaboration among key stakeholders, Colombia has the potential to achieve a prosperous and competitive future, becoming a benchmark for foreign investment in Latin America.

Conclusion

The transformation of foreign direct investment in Colombia is a multifaceted journey shaped by resilience, innovation, and strategic planning. By addressing existing challenges and capitalizing on emerging opportunities, Colombia can unlock its full potential as a regional leader in attracting foreign capital. As the country looks ahead to 2025, the foundation for sustained growth and competitiveness is firmly within reach, ensuring a brighter future for domestic and international stakeholders.

According to data from the country’s Investment and Export Promotion Agency (Invest in El Salvador), eight out of ten investors interested in El Salvador during the first nine months of 2024 represented new capital. These figures highlight the growing international interest in exploring opportunities in this Central American nation, driven by governmental strategies and the promotion of key sectors.

Growth in Interest in El Salvador

According to statistics from Invest El Salvador, 161 investment opportunities were generated from January to September 2024. Of these, 80.7% corresponded to new capital, 15.5% were aimed at expanding existing businesses, and 3.7% focused on diversifying production. This landscape reflects significant efforts to attract new projects, positioning El Salvador as an attractive destination for foreign investment.

Companies from countries such as Spain, France, Honduras, Uruguay, Singapore, South Korea, and Japan expressed interest in exploring the country’s competitive advantages. These include tax incentives, improvements in infrastructure, and a favorable regulatory environment in key sectors such as technology, tourism, and manufacturing.

The Diaspora as a Driver of Investment

A notable aspect of the data from Invest in El Salvador is the contribution of the Salvadoran diaspora, particularly in strategic sectors like aeronautics and technology. Between January and September 2024, 72 investment opportunities were channeled through Salvadorans abroad. This phenomenon strengthens the economic ties between the diaspora and their home country and expands El Salvador’s economic diversification.

Within these opportunities, the tourism sector occupied a prominent position, attracting 27.8% of the investments proposed by the diaspora. Infrastructure and construction represented 23.6%, while commerce captured 18.1%. Additionally, 11.1% of these initiatives focused on emerging areas such as Bitcoin, technology, and services.

This focus on diverse sectors demonstrates how Invest in El Salvador is working to attract interest in areas that can offer high-added value, leveraging the diaspora’s experience and resources.

Key Sectors for Investment

Beyond tourism and technology, El Salvador has successfully attracted investment in a wide range of economic sectors. These include agro-industry, logistics, manufacturing, energy, real estate, and healthcare. This comprehensive approach enables the country to diversify its economy and create opportunities across multiple areas.

For instance, the agro-industry has gained prominence due to the growing demand for high-quality agricultural products in international markets. Meanwhile, El Salvador’s strategic location has boosted the logistics sector as a bridge between North and South America and improved port and transportation infrastructure.

The energy sector is also receiving attention thanks to the country’s efforts to implement renewable and sustainable solutions. This reinforces El Salvador’s image as a destination committed to environmental preservation and opens new doors for investors interested in clean energy.

Challenges and Opportunities

Despite the notable interest in these sectors, Invest in El Salvador has not provided details on how many generated opportunities materialized. Specific figures regarding the funds ultimately allocated or the physical progress of the projects have also not been disclosed. This presents a challenge, as the practical realization of investments is crucial for measuring the success of the promoted initiatives.

According to the Central Reserve Bank (BCR), net foreign direct investment (FDI) registered during the first three quarters of 2024 reached $387.44 million. However, this figure represented a 27.2% decrease compared to the same period in 2023. More than $390.9 million of these investment flows came from Europe, with the remainder originating from capital in Central America, the rest of the Americas, Asia, and other countries.

This decline in FDI underscores the need for El Salvador to continue improving its business environment to attract and retain significant investments. Invest in El Salvador plays a fundamental role in this process by strengthening investor confidence and maximizing the impact of the identified projects.

Future Projections

In the medium and long term, El Salvador has a unique opportunity to solidify its position as an attractive destination for international investment. Emerging sectors such as Bitcoin and technology, which have already captured considerable interest, could catalyze sustained growth. At the same time, the Salvadoran diaspora will continue to play a key role, not only as a source of capital but also as a promoter of innovative projects.

Finally, for the country to fully capitalize on these opportunities, Invest in El Salvador must implement mechanisms to track and measure the impact of investments. This will ensure that initiatives are announced and become real economic and social development engines.

In summary, the 2024 report from Invest in El Salvador highlights the growing interest in investing in the country, emphasizing new capital and strategic sectors. Although challenges remain in project realization and increasing FDI, the outlook remains optimistic for the country’s future as a competitive investment destination in the region.

Costa Rica has emerged as a hub for manufacturing in Central America, offering an ideal combination of strategic location, skilled workforce, and business-friendly incentives. Manufacturing in Costa Rica has become attractive for companies across various industries seeking operational efficiency and access to global markets. This blog post explores why Costa Rica is well-suited for manufacturing, the primary industries and companies operating there, the country’s infrastructure, and the incentives available to manufacturers.

Why Choose Costa Rica for Manufacturing?

Costa Rica’s stability, strategic location, and commitment to sustainability make it a prime destination for manufacturers. Here are some of the key factors contributing to its appeal:

Strategic Location

In the heart of the Americas, Costa Rica provides easy access to North and South American markets. Thanks to its well-developed ports, such as Puerto Limon and Caldera, the country is well-positioned to ship goods to Europe and Asia through the Atlantic and Pacific Oceans.

Political and Economic Stability

Costa Rica is known for its stable political environment and robust economy. As one of the most democratic nations in Latin America, it provides businesses with a predictable and secure operating environment.

Commitment to Sustainability

Costa Rica’s focus on environmental sustainability aligns with global trends in responsible manufacturing. Many companies are drawn to the country’s commitment to renewable energy, eco-friendly practices, and biodiversity preservation.

Highly Skilled Workforce

Costa Rica boasts a well-educated and skilled workforce. The country’s emphasis on education, particularly in STEM fields, ensures manufacturers can access talent capable of supporting advanced manufacturing processes.

Key Industries and Major Companies in Costa Rica

Manufacturing in Costa Rica spans several high-value industries, including medical devices, electronics, automotive parts, and food processing. Below, we highlight some of the most prominent sectors:

1. Medical Devices

Costa Rica is a global leader in the production of medical devices. With over 90 medical device companies operating in the country, this sector accounts for a significant portion of Costa Rica’s exports.

Major Players: Companies like Medtronic, Boston Scientific, and Abbott have operated in Costa Rica.

Locations: Most of these companies are located in free trade zones such as the Green Park Free Zone and Zona Franca Metropolitana, both situated near the capital, San José.

2. Electronics and High-Tech Manufacturing

Costa Rica’s focus on innovation and technology benefits the electronics sector. Intel’s decision to reopen its semiconductor assembly and testing facility in Costa Rica in 2020 underscores the country’s capabilities.

Major Players: Intel, Zollner, and Establishment Labs.

Locations: High-tech manufacturing hubs are concentrated around the Greater Metropolitan Area (GAM), which includes San José, Heredia, and Alajuela.

3. Automotive Parts and Advanced Manufacturing

Costa Rica has a growing automotive manufacturing sector that focuses on producing specialized components and advanced materials.

Major Players: Adient, Panduit, and Bridgestone.

Locations: Many companies operate in Alajuela and Cartago, benefiting from proximity to major logistics centers.

4. Food and Beverage Processing

Costa Rica’s agricultural abundance supports a thriving food and beverage processing industry. Companies produce and export coffee, pineapples, bananas, and packaged food products.

Major Players: Dole, Chiquita, and local companies such as Café Britt.

Locations: Processing plants are distributed across rural areas, particularly in Puntarenas and Guanacaste.

Physical and Human Infrastructure Supporting Manufacturing in Costa Rica

1. Transportation and Logistics

Costa Rica’s infrastructure is well-developed to facilitate manufacturing operations:

Ports: Key ports such as Puerto Limon on the Caribbean coast and Puerto Caldera on the Pacific coast provide efficient routes for international shipping.

Airports: Juan Santamaría International Airport in Alajuela and Daniel Oduber Quirós International Airport in Liberia offer cargo handling capabilities.

Road Network: While improvements are ongoing, Costa Rica’s road network connects manufacturing hubs to major ports and border crossings.

2. Utilities and Energy

Costa Rica is a leader in renewable energy, with over 99% of its electricity generated from renewable sources. This ensures manufacturers have access to clean and reliable energy at competitive rates.

3. Education and Training

The country’s investment in education supports its manufacturing sector:

Universities: Institutions such as the University of Costa Rica (UCR) and the Costa Rica Institute of Technology (TEC) produce graduates skilled in engineering, technology, and manufacturing.

Technical Training: The National Institute of Learning (INA) offers programs specializing in training manufacturing workers.

Incentives for Manufacturing in Costa Rica

Costa Rica offers an array of incentives to attract and retain manufacturers. These incentives include tax breaks, special customs regimes, and access to free trade zones:

1. Free Trade Zones (FTZs)

The Free Trade Zone Regime is one of the most significant incentives for manufacturing in Costa Rica. Companies operating within these zones benefit from the following:

Tax Exemptions: Exemption from import taxes, export taxes, and corporate income taxes for a set period.

Customs Benefits: Streamlined customs procedures and reduced import/export costs.

Infrastructure: Access to world-class facilities and logistics support.

2. Special Customs Regimes

Costa Rica offers manufacturers customs incentives to facilitate the import of raw materials and the export of finished goods. These include duty-free import of machinery and equipment necessary for manufacturing operations.

3. Government Grants and Support

The Costa Rican Foreign Trade Promotion Agency (PROCOMER) and the Costa Rican Investment Promotion Agency (CINDE) work closely with manufacturers to provide:

Site Selection Assistance: Helping companies find the best locations for their operations.

Workforce Recruitment: Support in identifying and hiring skilled labor.

Regulatory Guidance: Assistance in navigating local regulations and obtaining necessary permits.

Challenges and Opportunities

While manufacturing in Costa Rica offers numerous benefits, companies may face challenges such as high labor costs relative to other Central American nations and ongoing infrastructure upgrades. However, these are outweighed by opportunities to leverage the country’s skilled workforce, strategic location, and robust incentives.

Conclusion

Costa Rica’s reputation as a manufacturing destination is well-earned. With a strong focus on sustainability, a skilled workforce, and a supportive business environment, the country offers unparalleled advantages for companies seeking to establish or expand manufacturing operations. From medical devices and electronics to food processing and automotive components, manufacturing in Costa Rica continues to grow, driving economic development and innovation.

Whether you are a multinational corporation or a mid-sized enterprise, Costa Rica provides the tools, resources, and incentives to thrive in today’s competitive global market.

Guatemala, the largest economy in Central America, blends tradition and modernity in its primary industrial sectors. With a diversified and constantly evolving Gross Domestic Product (GDP), the country stands out for its focus on agro-exportation, manufacturing, emerging technologies, renewable energies, and tourism. These industries contribute significantly to economic growth while generating a wide range of job opportunities across skill levels and sectors.

Education is always the right path for those seeking to capitalize on these opportunities. Higher education programs in Guatemala offer a variety of courses tailored to the demands of the country’s growing industries. These programs can provide a competitive edge from agricultural sciences to engineering and international trade. Below, we explore the principal industries in Guatemala and the job opportunities they offer:

Agricultural and Agro-Export Industry

Agriculture remains one of the principal industries in Guatemala and an essential economic foundation, representing approximately 12% of GDP and employing over 30% of the active workforce. Products like coffee, bananas, sugarcane, and cardamom lead exports, strengthening the country’s presence in international markets.

This sector offers diverse employment opportunities for farmers, laborers, and highly skilled professionals such as agricultural engineers and crop management technicians. The growing emphasis on sustainable agriculture and precision technology creates new demands for biotechnology and water resource management expertise.

The agricultural sector is expected to diversify its crop production further and integrate advanced technologies, expanding opportunities for resource management experts, export logistics professionals, and those with a strong understanding of global trade.

Manufacturing and Export Sector

Manufacturing is another of Guatemala’s principal industries and a crucial pillar of the national economy. In 2024 alone, this sector generated more than 305,000 jobs and achieved export revenues of USD 8.2 billion. Key manufactured products include food and beverages, pharmaceuticals, paper and cardboard, and various industrial goods.

Notable examples of success in this industry include pharmaceutical companies exporting to over 85 countries and producers of rubber and plastics serving markets in North America and Europe. Job opportunities range from technical roles, such as machinists and quality control technicians, to higher-level positions, such as process engineers, logistics specialists, and administrative professionals with expertise in international trade.

Trends toward automation and artificial intelligence drive further innovation, opening doors for professionals skilled in robotics, systems integration, and data-driven manufacturing processes.

Technology and Business Process Outsourcing (BPO)

The technology sector is rapidly becoming one of the principal industries in Guatemala, fueled by global digitalization and the increasing demand for business process outsourcing (BPO) services. This includes areas like technical support, software development, and data analysis. With more than 100,000 available jobs, this sector is a key driver of employment for young, tech-savvy professionals.

In-demand roles include programmers proficient in languages like Python and JavaScript, technical support specialists, and data analysts. These highly specialized careers are often among the best-paying in Guatemala and offer significant opportunities for career advancement.

The sector’s future lies in advancements in artificial intelligence, machine learning, and the implementation of advanced cybersecurity systems. This positions Guatemala as a competitive global technology and services market player.

Renewable Energy and Sustainability

Renewable energy is emerging as one of Guatemala’s most promising principal industries. With significant solar, wind, and hydropower development potential, the sector supports energy independence while addressing climate change.

Job opportunities in renewable energy are extensive, spanning roles such as clean energy engineers, environmental managers, and sustainability consultants. As Guatemala increases investment in green infrastructure and eco-friendly technologies, the demand for skilled professionals in this field will continue to grow.

Tourism and Hospitality Sector

Tourism accounts for approximately 11% of Guatemala’s GDP, making it one of its principal industries. This vibrant sector generates more than one million direct and indirect jobs, particularly in destination management, hospitality services, and tourism marketing.

Guatemala’s iconic destinations, including Antigua, Tikal, and Lake Atitlán, attract millions of visitors annually. The industry is increasingly focused on cultural and sustainable tourism, creating opportunities for professionals who specialize in promoting unique and environmentally conscious travel experiences.

Conclusion and Outlook for Industries in Guatemala

The principal industries in Guatemala are poised for continued growth as technological development, sustainable initiatives, and integration into international markets gain momentum.

In agriculture, increased adoption of technologies to optimize resources and diversify crops is expected, fostering specialized jobs. In manufacturing, automation promises to enhance efficiency and competitiveness in global markets. Meanwhile, tourism will emphasize sustainable and cultural experiences, strengthening local economies and creating new opportunities for entrepreneurs and professionals.

Fortunately, education trends show that many young Guatemalans are pursuing careers in engineering and technical fields. However, fewer students are entering careers in international trade, tourism, biotechnology, or resource management—fields where demand is projected to grow significantly. The challenge for Guatemala lies in aligning its educational programs with the evolving needs of its industries to ensure a well-trained workforce capable of sustaining economic growth in the decades to come.