The UN trade division analyzed the dynamics of foreign direct investment during 2023. An examination of foreign investment in Argentina was included among the countries that, despite the global decline, saw an increase in capital inflows.

According to the Global Investment Report prepared by the UN, foreign direct investment in Argentina was US$23 billion in 2023. Argentina was thus among the countries that saw an increase in asset arrivals compared to the previous year when it was the destination of US $15 billion in investments. In addition, it was among the top 20 global recipients, with an average contraction of investments in the world and Latin America.

Growing demand for critical minerals, including lithium, rare earth or cobalt, and raw materials partly explains this increased foreign investment in Argentina.

Investments in the region: the weight of extractive industries

In 2023, Latin America and the Caribbean attracted 19 mega projects valued at more than US$ 1 billion each, 17 of which were led by investors outside the region, particularly from the United States, Spain, the Netherlands, and Luxembourg.

According to the report, large projects in Chile and Brazil boosted the region’s values, which channeled the increase in global demand for raw materials and minerals essential for the energy transition. The primary sector, strongly extractive, represented 23% of the value of new regional projects in the last two years.

The particularity of these industries is that they are subject to changes in commodity prices.

However, investments in renewable energies stood out: Four of the ten projects with the highest investment amounts were in this segment, particularly in green hydrogen and green ammonia.

When observing the evolution in the different sectors in the region, there were registered declines in areas such as infrastructure (-30%) and public services (-23%), as well as in renewable energies (-40%), followed by information technologies and chemical products. In the opposite direction, the increases were seen in the base metals and metal products industry.

The place of foreign investment in Argentina

Although foreign direct investments had a cut of 2% in South America and totaled 143 billion dollars, the acceleration of foreign investment inflows to Argentina, along with Chile and Guyana, compensated for the lower values registered in Brazil and Peru. Despite the decline, Brazil remained the most significant attractor of investments.

Argentina was ranked fifth as a destination for the highest-valued projects, which are estimated to exceed one billion dollars and are vectors of international financing, particularly in extractive sectors.

In a scenario of contraction of foreign investments globally, those made by multinationals from emerging countries chose to expand towards the financing of new projects over the purchase of assets. It is in that sense, and crossed with critical minerals, that Argentina was included in the investments of the Chinese Zijn Mining Group in mines and Kazakhstan.

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Disputes between investors and states

During 2023, UNCTAD reported 60 new investor-state dispute resolution processes, also known as arbitration processes.

The new cases in 2023 were initiated against 37 countries, 70% of which were against developing countries. Mexico alone had ten new cases. They were followed in the ranking by Honduras, with 5, Argentina, and Venezuela, with 3 each. Latin America and the Caribbean represented 50% of the claims. Most of the claims originated from actors from the United States, the United Kingdom, and Switzerland.

2023 was a good year for foreign investment in Argentina

In 2023, foreign investment in Argentina showcased a significant surge, positioning the country among the top global recipients of capital inflows. This notable increase, from US$15 billion in the previous year to US$23 billion, highlights Argentina’s growing attractiveness to international investors. A significant driver of this growth is the heightened demand for critical minerals such as lithium, rare earths, and cobalt, essential for the global energy transition. The extractive industries, prominently represented in Argentina’s investment portfolio, align with the broader regional trend in Latin America and the Caribbean, where extractive projects dominated the scene, particularly in countries like Chile and Brazil.

Despite a global contraction in foreign direct investment, Argentina’s robust performance, alongside Chile and Guyana, helped offset declines in Brazil and Peru. This resilience underscores Argentina’s strategic importance in the global investment landscape, particularly in sectors like mining and energy. The presence of large-scale projects exceeding one billion dollars further cements its position as a critical destination for international financing. The focus on new project financing over asset acquisition by multinationals from emerging economies, including significant investments from China’s Zijin Mining Group, highlights Argentina’s pivotal role in the critical minerals sector.

However, the investment landscape is challenging. Investor-state disputes remain contentious, with Argentina being one of the countries involved in arbitration processes in 2023. Such disputes underscore the complexities and risks associated with foreign investment in Argentina and other developing nations. Nevertheless, the country’s ability to attract substantial foreign direct investment amidst a global downturn reflects its potential and strategic significance. As global demand for essential raw materials continues to rise, Argentina’s position as a key player in the extractive and renewable energy sectors will likely strengthen, paving the way for sustained foreign investment in the coming years.

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Foreign Investment Propels Queretaro to the Top

Queretaro has been buzzing with foreign investment activity, with 28 projects worth over 6.3 billion dollars completed between January and May this year. The Ministry of Economy reports that this rapid pace of investment has positioned Querétaro as the entity with the highest rate of foreign direct investment in Mexico.

Querétaro, a state with immense potential, has concentrated 16% of the 39.2 billion dollars announced as investments in Mexico between January and May. This places Querétaro above entities such as the State of Mexico, Nuevo León, Coahuila, and Sinaloa, showcasing its significant role in Mexico’s overall foreign investment landscape.

In this regard, the Secretary of Sustainable Development, Marco Del Prete, communicated that Querétaro remains a national leader in investment projects completed this year. He also highlighted that these investments would create 7 thousand direct jobs in the medium term.

“According to the Ministry of Economy, more than 6 billion dollars have been announced for the State of Querétaro. As of last week, we were the first place in foreign direct investment announcements, more than 6 billion dollars. That is good news; many of them will be materializing and have already started, but it is good news that in investment announcements, Querétaro is occupying the first place,” he said.

Key Investments in Queretaro: Microsoft’s New Data Center and Amazon’s Upcoming Installation Notable Investments from Tech Giants in Queretaro

“Recently, I had the opportunity to speak with Amazon executives; we continue working with them; the project is progressing according to schedule, and we estimate to be able to lift the switch of this Amazon Web Services data region for next year,” he said.

According to the Ministry of Economy, 127 investment projects were announced nationwide in the year’s first five months. Of these, 56% correspond to manufacturing companies, 13% to transportation, 13% to commerce, 13% to mass media, and 3% to energy.

A Thriving Hub for Diverse Industries

Queretaro, a prominent state in central Mexico, plays a crucial role in the nation’s economy due to its strategic location, robust industrial base, and dynamic economic policies. In recent years, foreign investment in Queretaro has emerged as one of Mexico’s fastest-growing economic drivers, fueled primarily by its diverse industrial sectors and significant foreign investment presence.

The state’s economy is characterized by a balanced mix of manufacturing, aerospace, automotive, and agriculture industries. Manufacturing is a cornerstone, contributing significantly to the state’s GDP. Queretaro hosts major automotive production facilities, with companies like General Motors and Bombardier operating substantial manufacturing plants, reflecting the state’s pivotal role in Mexico’s automotive sector.

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Aerospace is another critical industry, bolstered by Queretaro’s Aerospace Park, which has attracted global giants such as Airbus, Safran, and Bombardier Aerospace. These companies leverage Queretaro’s strategic location and skilled workforce, making it a hub for aerospace manufacturing and engineering in Latin America.

Queretaro’s agricultural sector also remains vital, producing various crops, including maize, beans, and vegetables. The state’s agricultural output supports local consumption and contributes to Mexico’s food supply chain.

Foreign direct investment, particularly from the United States, Canada, and several European nations, has been instrumental in Queretaro’s economic growth. This investment has expanded industrial capabilities and fostered technological advancements and job creation within the state.

Investing in the Future: Education and Workforce Development

The Mexican state of Queretaro boasts a highly skilled and adaptable workforce supported by robust educational infrastructure. Its workforce is renowned for its technical proficiency and expertise across various industries, including manufacturing, aerospace, automotive, and technology. Queretaro’s educational system plays a pivotal role in nurturing this talent pool, with institutions such as the Autonomous University of Queretaro (UAQ) and the Technological Institute of Queretaro (ITQ) offering specialized programs in engineering, IT, aerospace sciences, and business management. These educational institutions collaborate closely with industry leaders and government agencies to tailor curricula that meet the evolving demands of the job market.

Furthermore, Queretaro benefits from initiatives like dual education programs, which integrate classroom learning with practical work experience, ensuring graduates are well-prepared for the demands of modern industries. The state government and private sector actively support vocational training and certification programs, enhancing the employability and competitiveness of the local workforce.

Queretaro’s workforce is technically proficient, culturally diverse, and multilingual, reflecting its attractiveness to multinational corporations seeking talent with global perspectives. The state’s strategic location and skilled labor force continue to attract foreign investment and foster innovation. However, Queretaro’s unwavering commitment to advancing its educational infrastructure and workforce development initiatives truly sets it apart. This commitment ensures that the state sustains its leadership in critical sectors and drives future prosperity, even as industries evolve and new technologies emerge.

Foreign investment in Queretaro: A Beacon of Opportunity in Mexico

The state’s economic ascent, fueled by robust foreign investment in Queretaro, underscores its pivotal role in Mexico’s economic landscape. With over 6.3 billion dollars in investments announced by mid-2024 and a national leadership position in foreign investment rates, Queretaro exemplifies dynamic growth and resilience. The state’s strategic focus on diverse industries such as manufacturing, aerospace, automotive, and agriculture solidifies its economic foundation and promises sustained development and job creation. As global giants like Microsoft and Amazon expand their operations in Queretaro, leveraging its skilled workforce and strategic location, the state is poised to continue attracting significant foreign investment in Mexico. Moving forward, Queretaro’s proactive economic policies and thriving industrial ecosystem are set to enhance further its stature as a cornerstone of Mexico’s economic vitality and a beacon of opportunity in the region.

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Foreign Investment Propels Queretaro to the Top

Queretaro has been buzzing with foreign investment activity, with 28 projects worth over 6.3 billion dollars completed between January and May this year. The Ministry of Economy reports that this rapid pace of investment has positioned Querétaro as the entity with the highest rate of foreign direct investment in Mexico.

Querétaro, a state with immense potential, has concentrated 16% of the 39.2 billion dollars announced as investments in Mexico between January and May. This places Querétaro above entities such as the State of Mexico, Nuevo León, Coahuila, and Sinaloa, showcasing its significant role in Mexico’s overall foreign investment landscape.

In this regard, the Secretary of Sustainable Development, Marco Del Prete, communicated that Querétaro remains a national leader in investment projects completed this year. He also highlighted that these investments would create 7 thousand direct jobs in the medium term.

“According to the Ministry of Economy, more than 6 billion dollars have been announced for the State of Querétaro. As of last week, we were the first place in foreign direct investment announcements, more than 6 billion dollars. That is good news; many of them will be materializing and have already started, but it is good news that in investment announcements, Querétaro is occupying the first place,” he said.

Critical Investments in Queretaro: Microsoft’s New Data Center and Amazon’s Upcoming Installation Notable Investments from Tech Giants in Queretaro

“Recently, I had the opportunity to speak with Amazon executives; we continue working with them; the project is progressing according to schedule, and we estimate to be able to lift the switch of this Amazon Web Services data region for next year,” he said.

According to the Ministry of Economy, 127 investment projects were announced nationwide in the year’s first five months. Of these, 56% correspond to manufacturing companies, 13% to transportation, 13% to commerce, 13% to mass media, and 3% to energy.

A Thriving Hub for Diverse Industries

Queretaro, a prominent state in central Mexico, plays a crucial role in the nation’s economy due to its strategic location, robust industrial base, and dynamic economic policies. In recent years, foreign investment in Queretaro has emerged as one of Mexico’s fastest-growing economic drivers, fueled primarily by its diverse industrial sectors and significant foreign investment presence.

The state’s economy is characterized by a balanced mix of manufacturing, aerospace, automotive, and agriculture industries. Manufacturing is a cornerstone, contributing significantly to the state’s GDP. Queretaro hosts major automotive production facilities, with companies like General Motors and Bombardier operating substantial manufacturing plants, reflecting the state’s pivotal role in Mexico’s automotive sector.

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Global Trends and Local Contrasts

“This contrasts with the global trend, where it is observed that the majority of patent applications are related to the field of computer, electronic, electrical, and computational technology. This is also because the main interested parties in obtaining patents in these technological fields are companies from China, Japan, and Korea,” Patiño said. Indeed, the World Intellectual Property Organization (WIPO) revealed that between 2011 and 2021, patent applications from the international pharmaceutical sector registered an annual growth of 3.2 percent, ranking 29th out of the 35 technology fields analyzed by the global intellectual property body.

Leadership in Patents

Juan Pablo Concha, Intellectual Property partner at Baker McKenzie, highlights the pharmaceutical industry’s leadership in using patents in Colombia as a “legal tool par excellence” when promoting research and development of new products and medicines. Likewise, he added that this fact becomes more relevant in a country with no deep-rooted culture in this field. “It denotes the importance of this industry and, simultaneously, the effectiveness of the industrial property system for inventors and consumers in general. Colombia is a country that has unmatched human talent, and being able to enhance that talent by promoting research and development is the ultimate goal that industrial property should pursue,” he assured.

Challenges and Uncertainty

Despite the above, the pharmaceutical industry in Colombia has “an uncertain outlook” due to the recent declaration of the compulsory license of the drug Raltegravir. According to his view, this factor may be detrimental to the promotion of development because it ignores the incentives for developing new medicines. Along the same lines, María Clara Escobar, executive president of the Association of Pharmaceutical Research Laboratories (Afidro), raised the importance of intellectual property and framed it as one of the sector’s short—and medium-term challenges. “Ensuring legal security in the pharmaceutical industry in Colombia requires respect for intellectual property rights, which are key to encouraging innovation. Patents support the investments of effort, time, money, and human resources so that these innovative solutions can be reached that change the course of a disease,” he assured.

The pharmaceutical industry in Colombia holds immense potential as a driver of innovation and development despite the challenges it faces. The significant investments in research and development and the increasing number of patent applications underscore the sector’s growth and its importance in the national economy. Protecting intellectual property rights is crucial to sustaining this momentum, as it incentivizes the creation of new medicines and supports substantial investments. While the recent declaration of a compulsory license for Raltegravir introduces some uncertainty, the overall trajectory of the industry remains promising. By fostering a robust intellectual property framework and leveraging human talent, the pharmaceutical industry in Colombia can continue to thrive and contribute to global advancements in healthcare.

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Chile’s Foreign Direct Investment (FDI) has been on a positive trajectory in recent years, outperforming other Latin American countries. The United Nations Conference on Trade and Development (UNCTAD) report, published recently, reveals that FDI inflows in Chile in 2023 reached $21 billion, marking a robust 24.6% increase from 2022. This growth, significantly higher than other regional players, underscores Chile’s promising FDI landscape in 2023.

Regional Comparison of FDI Inflows

Argentina: $22.9 billion (growth of 48.7%)

In 2023, Argentina witnessed significant Foreign Direct Investment (FDI) inflows, predominantly in the energy, mining, and agriculture sectors. The energy sector, especially renewable energy projects, attracted considerable investment due to the country’s abundant natural resources and commitment to transitioning towards greener energy sources. Additionally, the mining sector, with its rich reserves of lithium and other critical minerals essential for the global shift towards electric vehicles and renewable energy technologies, saw substantial FDI. Agriculture also remained a significant recipient of foreign investment, driven by Argentina’s strong export-oriented agro-industrial base and global demand for its agricultural products. These sectors collectively contributed to drawing foreign capital to Argentina in 2023.

Brazil: $65.9 billion (decrease of 10.2%)

While Argentina’s FDI inflows showed a higher percentage growth, the absolute volume of FDI inflows in Chile in 2023 is a testament to its economic resilience, especially when compared to Brazil’s decrease. Despite the decline in Brazil’s FDI inflow, the country saw a significant influx of Foreign Direct Investment (FDI) in 2023, particularly in the manufacturing, technology, and renewable energy sectors. The manufacturing sector, leveraging Brazil’s large domestic market and its role as a regional production hub, attracted substantial investment. The technology sector also saw considerable FDI, driven by Brazil’s growing digital economy, expanding e-commerce market, and vibrant startup ecosystem. The renewable energy sector, supported by Brazil’s vast natural resources and favorable policies, also received notable foreign investment. These sectors collectively emerged as the key attractors of FDI in Brazil in 2023.

Outbound FDI Flow from Chile

Chile’s outbound FDI flow in 2023 was $5.6 billion, a significant drop of 53.0% compared to the previous year. In comparison:

Argentina: $2.4 billion (15.7% growth)

Brazil: $29.9 billion (decrease of 6.8%)

Despite this decrease, Chile’s outbound investment volume remains higher than Argentina’s, although significantly lower than Brazil’s.

The Stock of FDI Inflow in Chile

The stock of FDI inflows in Chile also shows robust performance. In 2023, the stock of incoming FDI in Chile was $267 billion, with a growth of 6.8% compared to 2022. In comparison:

Argentina: $129 billion (10.4% growth)

Brazil: $997.5 billion (13.6% growth)

Although the percentage growth in Argentina and Brazil was higher, the stock of FDI inflow in Chile remains remarkably high, highlighting the robust FDI inflows in Chile in 2023.

Cross-border Mergers and Acquisitions

Chile had a mixed performance regarding cross-border mergers and acquisitions. In 2023, net sales were $2.012 billion, a decrease of 13.8% from the previous year. In comparison:

Argentina: -$181 million (negative net sales)

Brazil: $8.5 billion (growth of 455.0%)

Greenfield Investment Projects

With an increase of 186.5% in 2023, Greenfield investment projects in Chile reached $22 billion. This growth is substantially higher than that of other countries in the region:

Argentina: $9.2 billion (25.4% growth)

Brazil: $36.2 billion (69.0% growth)

Regional Comparison

Chile has maintained a competitive position in receiving and issuing FDI in Latin America and the Caribbean. While the region has experienced fluctuations, FDI inflows in Chile have stood out with significant increases in several key FDI indicators, reflecting the impressive growth of FDI inflows in Chile in 2023.

The robust FDI inflows in Chile underscore the country’s economic resilience and attractiveness to foreign investors. Despite the impressive growth rates in Argentina and Brazil, Chile’s $21 billion FDI inflow in 2023 represents a notable 24.6% increase, highlighting its strong position within the region. Chile’s $267 billion stock of incoming FDI further supports this growth trajectory, indicating sustained investor confidence. The significant rise in Greenfield investment projects, which surged by 186.5% to $22 billion, underscores the country’s dynamic investment environment. Additionally, while Chile experienced a 13.8% decrease in cross-border mergers and acquisitions, it still managed to maintain positive net sales, unlike Argentina. Although Chile’s outbound FDI flow saw a substantial drop, the country’s overall FDI landscape remains promising. The comparative analysis reveals that while Argentina and Brazil have their strengths, particularly in the energy, mining, and technology sectors, Chile’s steady growth and high absolute volumes of FDI inflows reflect its stable economic framework and investor-friendly policies. As Chile continues to enhance its competitive edge, it is well-positioned to attract further foreign investment, reinforcing its status as a key player in Latin America’s economic landscape.

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Focus on Innovation and Competitiveness

“We will seek to attract innovation, knowledge, technologies, and management systems that will improve work and companies by making them more productive and competitive,” the 65-year-old president highlighted in front of different invited actors. Previously, the head of the Economy, Gabriela García, expressed that Guatemala regained investors’ trust thanks to the current government’s transparency policy.

Establishment of the Investment Promotion Agency

As part of the Guatemala National Strategy to Attract Foreign Direct Investment, the creation of the National and Foreign Investment Attraction Agency was advanced. This agency will be actively dedicated to promoting investments. The National Strategy to Attract Foreign Direct Investment prioritizes traditional sectors with a successful investment history and already existing commercial dynamics. These sectors include processed foods and beverages, clothing, textiles, business services, contact centers, and the BPO (business process outsourcing) sector.

Infrastructure and Human Capital Development

At the same time, she added, “The government continues working to modernize the country’s infrastructure and strengthen human capital formation processes.” She highlighted these efforts to improve Guatemalan competitiveness so that companies representing more sophisticated sectors, such as electrical-electronics, health services, biotechnology, medical devices and equipment, and tourism, will invest in the medium term. The Minister said the strategy also focuses on markets with which Guatemala already has a commercial relationship, supported by 19 investment agreements and 14 free trade agreements. She mentioned the United States, Mexico, Colombia, Spain, South Korea, Japan, Taiwan, India, Germany, the Netherlands, and the United Kingdom.

In conclusion, the Guatemala National Strategy to Attract Foreign Direct Investment marks a significant step towards strengthening the country’s economic framework and fostering a more conducive environment for foreign investments. By focusing on both traditional and emerging sectors and leveraging existing trade agreements, Guatemala aims to position itself as a competitive destination for global investors. This strategic approach and ongoing infrastructure improvements and institutional reforms underscores the government’s commitment to sustainable and inclusive economic growth.

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On June 13, 2024, the Government of Guatemala launched the Guatemala National Strategy to Attract Foreign Direct Investment. This document is an instrument to boost economic activity and promote new opportunities during the current administration’s four years in office. At the event, the Guatemalan president, Bernardo Arévalo, specified the reconstruction and expansion of infrastructure and the promotion of institutional reforms such as the Competition Law.

Guatemala’s Competition Law

Guatemala’s competition law, established by the “Ley de Competencia,” enacted in 2016, is a testament to the country’s commitment to promoting and ensuring fair competition within the market. This law, designed to be fair and just, should instill confidence in Guatemala’s commitment to fair business practices. The law prohibits anti-competitive agreements like price-fixing, market-sharing, and bid-rigging to prevent collusion. It also addresses the abuse of dominance by prohibiting predatory pricing and exclusive dealing. Additionally, the law regulates mergers and acquisitions to avoid substantially lessening competition. Furthermore, it tackles various forms of unfair competition, including misleading advertising, defamation of competitors, and exploitation of another’s business reputation. Enforcement of the competition law is overseen by the Superintendencia de Competencia (Superintendency of Competition), which has the authority to investigate suspected anti-competitive practices, impose fines, and take other necessary actions to ensure compliance. Sanctions for violations can include substantial fines and orders to cease anti-competitive behavior. The law also features a leniency program, offering reduced penalties for companies that voluntarily report their involvement in anti-competitive practices and cooperate with authorities. Legal procedures outlined in the law ensure due process during investigations, hearings, and appeals. Guatemala’s competition law strives to create a competitive market environment that benefits consumers, businesses, and the economy by preventing anti-competitive practices and promoting fair competition.

Presidential Commitment to Economic Growth

However, the president stated, “We are aware that there is much that can be done from the Executive, from the Ministry of Economy specifically, to open more opportunities for growth and development.” The Guatemala National Strategy to Attract Foreign Direct Investment document reflects our commitment to creating a different future for the nation, with the generation of quality employment and environmentally responsible investment,” the head of state stressed. Arévalo expanded, “The strategy is a shared vision for the well-being and prosperity of Guatemalans and reflects the conviction that we can and must create an environment where investment becomes an engine for inclusive and equitable development.”

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Focus on Innovation and Competitiveness

“We will seek to attract innovation, knowledge, technologies, and management systems that will improve work and companies by making them more productive and competitive,” the 65-year-old president highlighted in front of different invited actors. Previously, the head of the Economy, Gabriela García, expressed that Guatemala regained investors’ trust thanks to the current government’s transparency policy.

Establishment of the Investment Promotion Agency

As part of the Guatemala National Strategy to Attract Foreign Direct Investment, the creation of the National and Foreign Investment Attraction Agency was advanced. This agency will be actively dedicated to promoting investments. The National Strategy to Attract Foreign Direct Investment prioritizes traditional sectors with a successful investment history and already existing commercial dynamics. These sectors include processed foods and beverages, clothing, textiles, business services, contact centers, and the BPO (business process outsourcing) sector.

Infrastructure and Human Capital Development

At the same time, she added, “The government continues working to modernize the country’s infrastructure and strengthen human capital formation processes.” She highlighted these efforts to improve Guatemalan competitiveness so that companies representing more sophisticated sectors, such as electrical-electronics, health services, biotechnology, medical devices and equipment, and tourism, will invest in the medium term. The Minister said the strategy also focuses on markets with which Guatemala already has a commercial relationship, supported by 19 investment agreements and 14 free trade agreements. She mentioned the United States, Mexico, Colombia, Spain, South Korea, Japan, Taiwan, India, Germany, the Netherlands, and the United Kingdom.

In conclusion, the Guatemala National Strategy to Attract Foreign Direct Investment marks a significant step towards strengthening the country’s economic framework and fostering a more conducive environment for foreign investments. By focusing on both traditional and emerging sectors and leveraging existing trade agreements, Guatemala aims to position itself as a competitive destination for global investors. This strategic approach and ongoing infrastructure improvements and institutional reforms underscores the government’s commitment to sustainable and inclusive economic growth.

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The free zone sector in the Dominican Republic has experienced unprecedented growth in recent years and has also emerged as a significant contributor to the national economy. Its role as an engine of prosperity is evident in the record figures in exports and productive sector diversification. Equally important is its contribution to job creation, further demonstrating these special production areas’ crucial role in the country’s socioeconomic development.

Booming Exports

The total exports from the free zones in May 2024, amounting to $814.7 million, surpassed the April figures by $41.4 million. This consistent growth is a testament to the sector’s competitiveness and dynamism, solidifying the Dominican Republic’s position as a significant player in the global market.

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Medical and Pharmaceutical Products: Reaching $1.2 billion this year, this sector represents 17% of total exports. The Dominican Republic has established itself as a significant exporter of medical devices thanks to its strategic location, favorable trade agreements, and growing manufacturing capabilities. Key medical devices exported include surgical instruments, diagnostic equipment, medical disposables like syringes, catheters, IV sets, and orthopedic devices such as implants and prosthetics. These exports highlight the Dominican Republic’s role in the global medical device supply chain, providing critical healthcare products to markets worldwide.

Tobacco and its Derivatives: With $512.6 million in exports, the tobacco sector experienced a significant 9% growth compared to 2023. The Dominican Republic’s reputation for high-quality tobacco and tobacco derivatives has solidified its position as one of the world’s leading exporters. The primary export, premium cigars, is highly sought after for their craftsmanship and the quality of Dominican tobacco. Additionally, the country exports raw tobacco leaves, cut filler tobacco, and processed tobacco derivatives such as cigar wrappers and binders, further highlighting its prominent position in the global tobacco market.

Electrical and Electronic Products: Exports in this sector totaled $495.2 million, showing an upward trend. The Dominican Republic exports various electrical and electronic products, contributing significantly to the global supply chain. Key exports include electronic circuits, insulated wire and cable, electrical transformers, and capacitors. The export portfolio also consists of other electrical machinery and equipment, reflecting the country’s growing expertise and capability in the electronics sector. These products contribute significantly to the national economy and underscore the Dominican Republic’s role as a competitive player in the international market for electrical and electronic goods.

Jewelry: This year, the jewelry industry has exported $315.1 million. The Dominican Republic exports a variety of jewelry items, focusing significantly on pieces made from its native gemstone, Larimar. Larimar jewelry includes rings, necklaces, earrings, and bracelets, often set in silver or gold. Additionally, the Dominican Republic exports jewelry made with amber and other precious metals like gold and silver. The craftsmanship and quality of Dominican jewelry make it a notable player in the global jewelry market.

Plastic Articles: The Dominican Republic’s exports of plastic articles have reached $105 million. The country exports a variety of plastic articles, including plastic packaging materials, household goods, industrial components, and furniture. These products are valued for their durability, versatility, and cost-effectiveness, making them popular in domestic and international markets.

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Significant Contributions to Dominican economic growth

Free zones have generated a positive impact on Dominican economic growth, employment, and social well-being:

Jobs: Free zone parks register more than 197,000 jobs, with more than half occupied by women. This represents over 100,000 jobs, promoting gender parity and driving social development.

Foreign Investment: Free zones attract foreign direct investment, contributing to the transfer of technology, knowledge, and best business practices.

Regional Development: Free zones in different regions of the country encourage local development and decentralize employment opportunities.

Sustainable Growth

The National Council of Free Zones has established strategies to guarantee the sustained growth of the sector, focusing on:

Diversification of Sectors: Expanding the range of exported products to reduce dependence on specific items.

Attracting New Investments: Bringing in high-tech and value-added companies.

Strengthening Training: Improving the skills and competencies of personnel working in free zones.

Infrastructure Modernization: Investing in improving infrastructure and logistics of industrial parks.

The rise of free zones has been pivotal in driving Dominican economic growth. These zones have bolstered the nation’s economy through significant contributions to exports, job creation, and regional development. As the Dominican Republic continues diversifying its production and attracting foreign investments, the future looks promising for sustained growth and prosperity. The strategic initiatives set by the National Council of Free Zones will further cement the sector’s role as a cornerstone of Dominican economic growth, ensuring continued success and development in the years to come.

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