Colombia wants to attract global companies. We’re not saying that ourselves — officials at the Colombian investment promotion agency PROCOLOMBIA have made it very clear in recent times. The new thrust toward international brand names, foreign direct investment, and job creation is a natural outgrowth of Colombia’s ongoing diversification effort. With historic trade deals already signed, Colombia will move to position itself as a premier destination for nearshoring candidates.

Nearshoring has become a buzzword in multinational corporate circles. Between trade wars, COVID-induced shortages, and the rise in trans-oceanic freight costs, companies are casting a favorable eye toward Latin America. But Colombia wants to attract global companies too. It’s building out some serious advantages to become the next talent magnet for North American companies looking southward.

Colombia has two coastlines. That’s not hyperbole — every country has two sides. What makes Colombia unique is its ability to access markets on both the Atlantic and Pacific Coasts with ease. Buenaventura serves as the #1 Pacific Gateway for America’s Trade, while neighboring port city Cartagena acts as America’s gateway to the Atlantic. As compared to regional rivals, few countries can offer such a quick turnaround on either coast.

Colombia’s port network services over 3,500 export shipping routes connected to 840 ports around the world.

Nearshoring companies looking for agile shipping logistics will find few regional competitors that can match Colombia’s access to North America, Europe, and Asia.

Colombia also boasts some of the fastest shipping times to the US of any country on the Pacific Rim, beating out Chile, Peru, and Mexico on cargo transit times — an important consideration for industries that rely on shorter inventory times.

Those companies that do or must fly their goods internationally will find Colombia a strong bet as well. Colombia operates 274 direct air routes, of which 130 are international connections. Those routes moved nearly one million tons of cargo in 2025 alone. Star attractions include Bogota’s El Dorado Airport, recently ranked as Latin America’s number one airport for air cargo shipments.

Just as competitive ports make Colombia an attractive option for exporters and importers handling bulky goods, dependable air routes open markets for time-sensitive products. Things like cut flowers, pharmaceuticals, perishable foods, and high-tech components depend as much on overland distance and flight availability as they do on port selection. No airport does Americas-to-Colombia flights quite like El Dorado, with direct flights serving Miami, Houston, New York, and more.

Colombia’s improving its road game too. Over the last decade, Colombia has invested US$19.6 billion in transportation PPP projects. Fourteen of those projects are highway concessions, many grouped under the country’s 4G and 5G concession programs. Analysts project these infrastructure projects to reduce cargo transit times by up to 30%. Especially those located near Puerto Antioquia.

You read that right — Colombia plans to open a brand-new port in its industrial heartland. Slated to open in 2026, Puerto Antioquia will shorten transit times for Medellín, Bogotá, Pereira, and Manizales-based businesses by hundreds, if not thousands, of kilometers. After struggling with deteriorated road networks through the Andean mountain range for decades, Colombia is finally developing serious options for nearshoring planners who need to move goods overland.

Speaking of Costs…

Let’s say you’re sold on Colombia’s geography. Traffic jams won’t keep your goods moving to the ports, and minimal overflight distances keep those time-sensitive goods arriving on time. Now it’s time to think about how long your money will stick around.

In Colombia, it just might. That’s thanks to a robust network of free trade zones (FTZ) that feature competitive incentive packages for new zone members. Now boasting over 120 zones across 18 different departments, Colombia is continuing to expand the territorial footprint of its FTZ program. What’s more attractive to overseas investors are the benefits contained within. With these zones, Colombia wants to attract global companies.

Companies operating in Colombia’s free trade zones enjoy:

• A 20% corporate income tax on profits generated from export activities. (Colombia’s Marginal Corporate Tax rate is 31%.)
• Exemption from VAT and tariffs on the importation of machinery, raw materials, and inputs used in production.
• 24/7 customs services at Zone ports of entry.

For companies trying to do the math on cost of operation in Latin America, Colombia’s free trade zones are directly responsible for US$2.675 billion in exports in 2025 alone.

Factor in growing commitments to sustainability from PROCOLOMBIA, and the country may very well edge out the competition when marketing teams get together to hash out your company’s next big move. El Dorado Airport has committed to a 57% reduction in airport emissions by 2028. That’ll be powered in part by an estimated 11,000 solar panels, but ecoefficiency measures at Cartagena port are also aiming to electrify the port’s crane fleet and increase the use of renewable energies.

Got Competition

Colombia wants to attract global companies, but so do a lot of other countries. Colombia isn’t the only country investing in port infrastructure or fast-tracking free trade zones.

Mexico continues to dominate nearshoring conversations thanks to its northern-border advantage and established track record with US MNCs. Chile and Peru also boast strong trade deal networks and open climates for FDI. Panama…well, you know about Panama and its logistics prowess.

Choosing where to nearshore won’t come down to infrastructure alone. Crime, drug trafficking, and successful pivots to green energy will play an outsized role in “competitive variables” between interested countries. Colombia has an incredible opportunity to make its case — but concerns over consistency and competitiveness persist.

Bottom Line

Colombia wants to attract global companies and is making major investments to turn itself into a destination for them. But with so many players jockeying for position after years of being off the radar, Colombia will need to fully commit if it wants to leave competitors in the dust.

In a year plagued by global market volatility and geopolitical unrest, Panama’s banking sector is defying the odds. The International Banking Center of Panama started 2026 by announcing a robust deposit growth of 6.59% year-on-year in the first quarter, led by both resident and non-resident investors.

While other global banking centers reel from uncertainty, the international banking center of Panama continues to raise the bar by strengthening its infrastructure and positioning itself as Latin America’s most reliable financial center.

Panama attracts deposits with stability and credibility

Let’s take a closer look at what is driving deposit levels higher in the international banking center of Panama.

Accelerating deposit growth in Panama came from two main sources. The first were local depositors, Panamanian residents and businesses who have continued to pour funds into the country’s banking sector. Increased financial inclusion, combined with an agile digital banking framework, has allowed banks to onboard a large number of citizens moving savings out of physical cash and into deposit accounts.

But domestic players are only half the story. Panama has uniquely benefited from economic and political instability in countries such as Colombia, Argentina, and Venezuela. As regional investors seek stability, Panama’s banking sector has proven itself an ideal destination for deposits looking for both transparency and credible US dollar-denominated banking services. Non-resident deposits have spiked as a result, with both financial institutions and pan-regional investors turning to Panama en masse.

Investor confidence is no coincidence

Capital is flowing into Panama for a reason. When we dissect the components behind Panama’s stability as a financial hub, a few key elements stand out:

• Being dollarized means Panama’s banks don’t have to worry about currency devaluation or conversion — depositors literally cannot lose their principal due to exchange rate fluctuations
• Panamanian banks maintain capital adequacy levels well above the Basel III international standard
• Banks operate under the expert supervision of Panama’s dedicated Superintendency of Banks of Panama (SBP)
• The absence of Panama’s central bank is offset by the high-quality liquid asset (QLA) reserves held by its financial institutions. Banks in Panama have constructed a bedrock of liquidity through self-enforced discipline.

Beyond the numbers

Deposit growth paints a compelling picture for Panama’s international banking sector. But Panama’s fundamental strengths go deeper than rising account balances.

The banking sector in Panama is unique in that it does not have a central bank. Instead, banks are hyper-focused on liquidity management and sit on deep reserves of high-quality liquid assets. This fortress balance sheet appeals to many of the high-net-worth and institutional investors parking their money in Panama today.

Additionally, Panama’s banks have stayed well clear of global trouble by not only meeting but exceeding global regulatory standards such as Basel III. Capital adequacy ratios provide a cushion for liquidity spikes that could be caused by international turbulence. Capital buffers remain strong and could help Panama’s banks weather even greater challenges should geopolitical tensions escalate. As banking becomes increasingly technology-driven, Panama’s banks have stayed ahead of the curve by prioritizing regulatory technology (RegTech). In addition to streamlining their own operations through back-office automation, Panama’s banks have made notable investments in cybersecurity and cloud-based technologies that facilitate a high-tech, high-touch customer experience. With regulators around the world continuing to prioritize cybersecurity, Panama’s early investments will likely pay major dividends in the years to come.

Turning compliance into opportunity

If there’s one area where Panama could potentially learn a thing or two from its Central American rival, Costa Rica, it would be regulatory compliance. The Panama Superintendency of Banks has done an excellent job transforming regulatory compliance from an expense center into a competitive strength. At a time when international headlines are focused on money laundering and financial transparency, Panama has taken proactive steps to ensure local banks are not utilized for illicit purposes. Rigorous KYC practices are just one example of how Panama has stayed ahead of international regulators, preventing financial institutions from running afoul of global watchdogs.

Can Panama’s international banking center lead the charge on ESG and sustainability?

As regulators around the world crack down on banks not taking climate risk into consideration, Panama is preparing for the future by integrating these risks into its supervision manual. As of mid-2026, Panama will officially score banks on their ESG (Environmental, Social, and Governance) practices during annual evaluations. With global capital shifting toward sustainable investments, Panama’s international banking sector is positioning itself to attract a growing pool of ESG-minded capital.

Taking stock

While many international financial centers are still reacting to global uncertainty, Panama is already several steps ahead. Through a combination of regulatory credibility, digital innovation, and forward-thinking supervision, Panama has solidified its standing as a global leader in offshore banking. Deposit growth in the first quarter of 2026 is just the latest proof point that Panama’s banks have what it takes to remain competitive on the world stage.

When searching for answers as to why El Salvador has become a strategic investment hub in Central America, you have to look no further than “Government Leadership.” Over the last decade, El Salvador has been steadily improving aspects of their country that directly affect the investment and business communities.

Take public safety, for example. On every level, Salvadoran citizens are seeing positive trends in homicides and crime. According to Business Insider, the homicide rate fell by 60% from 51 to 20 murders per 100,000 people from 2015 to 2021. As a result of this reform, foreign direct investment has increased as investors recognize El Salvador’s improvements and stability.

Seeing these clear strides in government leadership has set a tone that El Salvador is open for business and welcomes investors as a strategic investment hub in Central America. By implementing regulatory reforms that meet the demands of today’s digital economy, embracing technologies such as cryptocurrencies, and providing companies with generous tax incentives, El Salvador is paving the way for itself to become a true investment hub in Central America.

Read on to learn why El Salvador should be considered your next destination for foreign direct investment.

Competitive Tax Breaks

In addition to tax exemptions and benefits offered by Salvadoran Municipalities and development zones such as free trade zones (FTZ), the Salvadoran Government offers companies tax holidays for Foreign Direct Investment. Companies investing in El Salvador are exempt from:

• Income Taxes
• Municipal Taxes
• Import Duties on Machinery, Equipment, and Materials

In fact, technology companies can qualify for tax exemptions of up to 15 years.

Comparatively speaking, other Central American countries such as Costa Rica offer tax exemptions for 8 years, Panama for 6 years, and Honduras for 5 years. This is another reason why El Salvador is becoming a strategic investment hub in Central America.

Why are more tech companies moving to El Salvador?

Remote Working Visa

When traveling to El Salvador for work, you may apply for a remote working visa. This temporary visa grants you access to stay in El Salvador for up to two years. If you plan to work for yourself or own a business in El Salvador, you can apply for a Salvadoran Investment Visa.

Increasing Talent Pool

“Central America is a region that punches above its weight.”- Jose Villalobos, Head of Innovations at Microsoft LATAM.

Historically, countries like India and China have been seen as top destinations for outsourcing. The growth of these regions can be attributed to their large English-speaking workforce and availability of talent. But what makes Central America competitive in the grand scheme of offshoring and outsourcing?

A hidden advantage of Central America is the availability of a highly skilled talent pool. With cheaper labor costs compared to the U.S and higher than Asian competitors, Central America provides companies with bilingual professionals. As many countries in Central America continue to modernize their education system, specifically focused on STEM, these countries provide yet another advantage: a growing pool of talent.

Top Growing Industries in El Salvador

As more companies continue to turn to Central America for offshoring and outsourcing services, certain industries are starting to bloom. Tourism, technology, and aeronautical sectors are some of the top industries rapidly growing in El Salvador.

Tourism

Tourism Industries in El Salvador are booming. From 2019 to 2025, international visitor growth reached a staggering 92%. For the hotel industry specifically, growth rate averages are expected to exceed 8% annually until 2030.

Technology

Tax exemptions of up to 15 years are one of the many reasons technology companies are migrating their operations to Central America. El Salvador, in particular, has been attracting many startups because of its openness towards digital assets. In addition to tax breaks, technology companies can take advantage of:

• A clear legal framework to operate a digital asset business.
• An AI law fosters innovation and doesn’t overregulate the technology.
• Electronic government services.
• Transparency when applying for permits.

Aeronautical

The aeronautical industry is another prime sector growing in El Salvador. With established infrastructure in aircraft maintenance, repair, and overhaul, El Salvador offers many companies a chance to outsource their manufacturing and logistics operations.

Geographic Advantage

You might be wondering what makes Central America desirable compared to its Asian and African counterparts. Central America has many hidden advantages that make it one of the top regions for outsourcing and offshoring services. Proximity to the United States and trade partnerships are just some of the benefits that make Central America a prime location for companies looking to expand.

South of the United States and Mexico lies Central America. What’s the advantage of being located there? Distance. El Salvador shares a border with Guatemala to the west and Honduras to the north. Having direct access to these countries allows companies to reduce shipping distances drastically. Not only does short distance translate to cheaper costs, but lead times are shorter compared to shipping from Asia or even South America.

El Salvador’s Trade Partners

While Central America, the United States, and Mexico make up a substantial portion of El Salvador’s imports and exports. Colombia and Chile have recently signed trade agreements that open the doors for future commerce.

Conclusion

When looking for a place to invest, El Salvador is a great option. Whether you are looking to open a hotel, your own tech startup, or outsource your manufacturing operations. Whatever your needs, El Salvador can provide your business with what it needs to flourish in this sunrise economy. Interested in learning more? Contact LATAM FDI.

Brazil and Argentina’s automotive relationship has been the most significant continental partnership for decades. Now they are rewriting the rules of engagement to go global.

Bilateral automotive trade between Brazil and Argentina has been governed by ACE 14 since the early nineties. Designed at a time when Mercosur was conceptualized as a “trade administrator” focused on administering trade between member states rather than an “industry manager”, ACE 14 set the rules of automotive commerce across an integrated South American production chain.

The world has changed. Consumer preferences are shifting, Chinese automakers are gaining share around the world, and supply chain resilience is the name of the global game. Brazil and Argentina need to compete on the world stage with a united front, or risk falling further behind in a global industry rapidly leaving them behind.

Updating ACE 14 is the first order of business.

Who Wants to Reform ACE 14?

Most top-end conversation about automotive in Mercosur these days returns to ACE 14, or how it must be updated to allow Brazil and Argentina to compete with Asian automakers.

Leading the calls for reform are Brazil’s automotive industry association, Anfavea, and auto parts federation Sindipeças; their Argentine equivalents Adefa and Afac are equally concerned (and vocal). What brings these public-private entities together is an understanding that defending Mercosur’s position in the automotive hierarchy will take effort and coordination.

Argentina’s Daniel Herrero explains their motivation this way: “If Mercosur is just administrating trade, it will continue to be a trading bloc. But if it aspires to export vehicles and parts to the world, it should act as a production manager.”

ACE 14 was written in an era when Brazil and Argentina faced automotive competition primarily from the United States and Germany. Today’s competitors include China, and China doesn’t respect boundaries.

“There are two factors that drive us to act urgently: opportunities abroad and competition from China,” states Daniel Herrero, Director of Adefa

What Needs to Change?

ACE 14 has served Brazil and Argentina well. It created preferential tariff treatment between both countries that allowed an integrated regional supply chain to develop. But autos in 2021 are not autos in 1994.

China is the elephant in the room here. Chinese automakers are invading market after market, leveraging scale and the rapid advancements their domestic industry has made in electric vehicles. The next decade will be decisive as Chinese brands look to seize export markets that US and Japanese automakers once viewed as their exclusive territory.

South America has not escaped Beijing’s notice. If Brazil and Argentina don’t develop a unified regulatory framework that incentivizes investment, streamlines cross-border production, and deepens supply chain integration; Chinese automakers will sell them cars, too.

Both governments recognize the stakes. According to AutoBusiness, Brazil and Argentina collectively represent:

• A market of 350 million potential consumers
• Production capacity of up to 5 million vehicles annually
• Over $22 billion in cumulative investment since 2015

Industry jobs depend on it, too. Brazil’s automotive sector represents around 20% of its industrial GDP and supports 1.3 million direct and indirect jobs. Argentina’s figures aren’t too far behind, with automotive accounting for around 8.4% of industrial GDP and just over 500,000 jobs supported.

Needless to say, both industries have a lot riding on successful negotiations over the next decade.

There’s a reason Brazilians and Argentines buy each other’s cars. Between 55% and 70% of vehicles exported from both countries remain within the trade bloc to satisfy each nation’s demand, according to national industry associations. That’s billions of dollars of components and finished vehicles that cross an international boundary viewed by manufacturers as mere abstraction.

Bringing ACE 14 into the 21st century means preserving that integration; making it more resilient in the face of global competition. It also means locking in regulatory certainty and optimizing the bilateral production chain to incentivize investment from global automakers.

Businesses on both sides of the border have made their requests to government clear:

“The creation of more business-friendly climate in Brazil and Argentina is high on our agenda: clearer regulations, regulatory predictability, and stability are essential…We need common rules to make it easier to trade and transport our goods, locally or abroad.” Says Rodrigo Borras, Executive Secretary of Argentina’s Sindicauto

Finishing the Job By 2029

Bilateral talks between Brazil and Argentina remain at an early stage. In that sense, 2029 is an ambitious target for completely rewriting the rulebook on automotive commerce. But that doesn’t mean negotiators aren’t thinking about the finish line.

Carlos Silva Junior, CEO of Brazil’s Anfavea, explained to Reuters that negotiators aren’t simply interested in hammering out updated tariff rules. Ideally, they want regulations that encourage “investment balance” between both countries rather than pitching jurisdictions against each other to attract dollars and euros.

Achieving that balance starts with familiar business priorities. Companies want regulations they can understand, logistics they can rely on, and standards that do not change every time the administration in Brasilia or Buenos Aires flips parties.

There’s a sense of urgency to ACE 14 negotiations that comes with having something worth protecting. By building a regulatory framework that global automakers can understand and trust, Brazil and Argentina can position Mercosur as a formidable player in the decades ahead.

We don’t often see two major trading partners integrate, especially in a world being defined by fragmentation. Cars have a unique power to bring people together, and Brazil and Argentina are rewriting the rules of engagement to meet the moment.

The Venezuelan mining sector is making a bold play to reposition itself on the global investment map.

For as long as the country has bet its economy on oil, policymakers in Caracas promoted the Venezuelan mining sector as the jewel in the nation’s economic crown. High-grade deposits of gold, diamonds, coltan, bauxite, and rare earth elements sat underground — tantalizingly within reach — but insufficient investment turned a sector with promise into one defined by extraction to meet domestic needs and finance for artisanal miners.

Venezuela’s mining sector is back on Washington’s radar.

Deepening economic crisis and collapsing oil exports are now forcing Venezuela’s leaders to confront that reality. Mounting pressure from U.S. sanctions — especially the loss of a key Chinese market for crude oil — has also reignited Venezuela’s pursuit of gold mining, specifically as a source of much-needed foreign currency. Add in geopolitical upheaval, gold’s relative safe-haven status, and a slew of key amendments to the country’s mining law that aim to incentivize foreign investment in Venezuela, and investors are starting to pay attention.

Gold: Drive of Venezuela’s Mining Comeback

Until recently, the Venezuelan mining sector remained in the shadow of its resource-nationalized cousin: petroleum. Yet gold is fast emerging as a key driver of renewed interest from investors.

A revised mining law is slated to open the sector to private investment.

Unlike other parts of Venezuela’s economy, where commodity price changes have caused seismic shifts, mining was able to operate with relative autonomy. One analyst describes mining as Venezuela’s “engine that didn’t stop.” The market has started to take notice, too: Last year, Venezuelan gold production grew by nearly one-third and in January reached its highest level in over a decade.

The legal landscape is evolving as policymakers look to restart the sector.

Although domestic production has ticked upwards, broader reform in the Venezuelan mining sector is needed to catalyze private investment. Venezuelan lawmakers this week reintroduced a revamped mining law aimed at doing just that. The latest proposal would:

• extend concessions up to 30 years
• formalize artisanal mining (largely unregulated in Venezuela until now)
• require ministry promotion of foreign investment, provide for domestic arbitration
• prioritize mediation in legal disputes.

Gone from the new draft is controversial language that would have allowed the President to issue mining concessions at will.

Growing geopolitical tensions, with far-reaching implications for global mining markets, are providing an additional tailwind.

One of the more interesting developments in the steady stream of recent news about the Venezuelan mining sector concerns Washington. Reuters reported last month that despite heavy sanctions against Venezuela, the United States has granted several licenses that allow U.S. companies to conduct transactions related to mining in the country. In December, U.S. government officials met with executives from Minerven, Venezuela’s state-run gold mining company.

Why Now? U.S.-China Competition and Venezuela

Discussions between Minerven and the U.S. government are just one example of how geopolitical competition with China is playing into Venezuela’s efforts to court foreign mining investors.

China buys roughly two-thirds of the world’s mined rare earth metals, and while Venezuela is hardly a competitor in that space, Chinese control of the rare earth value chain is raising alarms in Washington. As one former U.S. diplomat with knowledge of the conversations recently told Axios, Venezuela “is well aware of the strategic importance of rare earth minerals and the pivotal role they will play in future industries and technologies, especially electric vehicles.”

Increased U.S.-Venezuela dialogue fits within a broader pattern

Elsewhere in Latin America, the United States is making major investments to wean critical mineral supply chains from reliance on China. Secretary of Energy Jennifer Granholm toured Peru’s largest lithium deposit in November. Earlier this month, President Trump approved $4 billion for mining production in the United States, including processing facilities for rare earth elements. with Venezuela.

Venezuela’s Mines Offer Investors Potential and Risk

Slowly but surely, the pieces are lining up to attract foreign investment to Venezuela. But just because the possibility exists doesn’t mean investors should take the plunge.

For starters, significant risk remains. The ease of doing business in Venezuela is among the lowest in the world. Venezuela’s legal system is opaque at best, and expropriation remains a serious risk for commercial actors. U.S. companies looking to operate in mining (and anywhere else in Venezuela) should heed the lessons of Venezuela’s oil industry, where billions of dollars in sunk costs failed to stave off competitive disregard for private property and contracts.

However, risks notwithstanding, there are legitimate reasons to consider Venezuela.

Similar dynamics are at play in Iraq, Libya, and Syria, countries that also boast significant mineral reserves and are fertile ground for U.S. companies looking to diversify their supply chains. But Venezuela has advantages these countries don’t: a history of production and, increasingly, Washington’s attention. As the Trump administration continues to explore tools for reducing risk in Venezuela, Congress should weigh whether targeted allowances for the Venezuelan mining sector could help alleviate suffering without undermining prospects for a democratic transition.