Chilean companies are reinforcing their commitment to Colombia following a business tour organized by the Santiago Chamber of Commerce. In an increasingly interconnected regional economic environment, trade relations between Chile and Colombia are consolidating as a strategic axis for business development and Latin American integration. In early October 2025, the Santiago Chamber of Commerce (CCS) led a business mission to Bogotá to strengthen ties, promote investment, and expand cooperation in technological innovation and sustainability.

The trip, which brought together representatives of major Chilean companies, government officials, and Colombian business leaders, marked a new milestone in bilateral relations. According to the CCS, the visit was “highly positive,” consolidating Chilean companies’ presence in Colombia while identifying new opportunities in infrastructure, energy, technology services, and retail.

High-Level Engagement to Boost Economic Integration

During the tour, the Chilean delegation met with Colombian officials, including President Gustavo Petro at the Casa de Nariño. This meeting signaled Colombia’s interest in promoting foreign investment, particularly from strategic regional partners such as Chile.

“The fact that President Petro received the Chilean companies’ delegation demonstrates the value Colombia places on bilateral investment and cooperation,” said Juan Francisco Velasco, Manager of Membership, Partners, and International Affairs at the CCS.

Velasco emphasized that the visit renewed trust between both countries and projected collaboration beyond trade. “The trip strengthened institutional and business ties and reaffirmed Chilean companies’ commitment to growth in the Colombian market, which remains a priority in their expansion plans,” he added.

Colombia: A Key Destination for Chilean Investment

Colombia has emerged as a top destination for Chilean companies’ investment in Latin America. According to the Central Bank of Chile, over 200 Chilean firms operate in Colombia, generating thousands of jobs and contributing to sectors such as retail, banking, energy, and services.

Velasco highlighted that this trend is expected to continue. “Chilean companies take a long-term view of Colombia. It is a market with institutional stability, sustained growth, and a business-friendly environment. Despite political changes, confidence in the country’s economic fundamentals remains strong,” he said.

Cencosud, one of the region’s largest retail companies, recently opened a new supermarket in Cali with an investment exceeding $5 million. This expansion reflects the confidence of Chilean companies in Colombia’s capacity to absorb new investments. Other sectors with high potential include renewable energy, mining, financial services, digital infrastructure, and e-commerce. Colombia has positioned itself as a regional hub for technological innovation, offering attractive opportunities for sustainable and digitally competitive business models.

Opportunities in Public and Urban Sectors

A highlight of the tour was the meeting with the Mayor of Bogotá, who presented investment projects in mobility, urban infrastructure, technology, and environmental sustainability.

Velasco noted that this generated strong interest among Chilean companies, opening doors to public tenders and public-private partnerships (PPPs) in the Colombian capital. “This is a key opportunity to promote Chilean investment in public sector projects, particularly in urban modernization initiatives that advance sustainable mobility and energy efficiency,” he said.

Bogotá, one of Latin America’s most dynamic cities, has implemented policies to attract foreign direct investment in green infrastructure, clean energy, and digital transformation—all areas where Chilean expertise and companies excel.

Stability, Trust, and Clear Business Rules

The CCS emphasized Colombian entrepreneurs’ positive perception of Chile as a commercial partner. “Chile is seen as reliable, stable, and governed by clear rules. This creates ideal conditions for deepening economic relations,” Velasco explained.

Colombian business leaders highlighted Chile’s governance model, focus on innovation, and sustainability, making it an ideal partner for technological exchange and joint projects. Chile contributes experience in management, services, and technology, while Colombia offers a growing market with a young and entrepreneurial population.

Political Context and Future Outlook

Despite upcoming presidential elections in Chile and Colombia, business confidence remains strong. Velasco stated, “Both countries’ economic fundamentals are solid. Colombia maintains macroeconomic stability, a robust financial system, and policies favorable to foreign investment. There is ample room to deepen trade and cooperation.”

The CCS projects growing Chilean investment in Colombia, particularly in digitalization, logistics, and clean energy projects. Simultaneously, Colombian companies are expected to increase investment in Chile, leveraging free trade agreements and regional synergies.

Technological Cooperation and Innovation

The mission also promoted cooperation in technological innovation. Both economies face digital transformation and automation challenges, making knowledge exchange essential.

The CCS highlighted collaboration opportunities in artificial intelligence, fintech, digital logistics, and the circular economy. Representatives from Chile’s startup ecosystem presented initiatives to Colombian accelerators and innovation entities.

“We aim to foster two-way knowledge exchange. Chilean companies have advanced technological solutions for business management, and Colombia’s entrepreneurial ecosystem complements this approach,” Velasco explained.

A Relationship with History and Vision

Trade relations between Chile and Colombia span decades, supported by free trade agreements and the Pacific Alliance with Mexico and Peru. This framework has reduced tariffs, harmonized standards, and promoted investment.

Colombia is the third-largest destination for Chilean investment in Latin America, with capital exceeding 10 billion dollars across productive and service sectors. Cultural affinity and a shared commitment to sustainable development make the bilateral relationship one of the most dynamic and balanced in the region.

CCS Vision: Integration with Purpose

At the conclusion of the tour, the CCS reaffirmed its commitment to promoting business integration between Chile and Colombia. Strengthening these ties not only drives economic benefits but also contributes to regional stability and sustained growth.

“Trade and investment are powerful tools for inclusive development. We aim to continue building bridges connecting companies, institutions, and people from both countries. Colombia is a strategic partner, and the CCS’s vision is to support Chilean companies in their expansion with responsibility and a long-term perspective,” Velasco concluded.

The business mission marked a decisive step in consolidating bilateral economic relations, strengthening Chilean companies’ presence, and demonstrating mutual interest in sustainable investment, technological cooperation, and joint development projects.

Chile and Colombia share a vision of progress based on stability, innovation, and inclusive growth. The CCS mission was not merely a commercial trip but a reminder that ties between the two nations are built on trust, collaboration, and a forward-looking perspective.

A Strategic Position in Global Trade

In logistics—the circulatory system of global commerce—the Dominican Republic occupies a privileged geographic position. More than 17,000 kilometers away from Dominican shores lie those of Singapore. The two countries do not share much in common; rice and beans have little in common with Hainanese chicken rice (prepared with two different broths). Yet both nations share something essential: a strategic location that provides exceptional international logistics connectivity. For Singapore, its proximity to major Asian shipping routes has made it a global maritime powerhouse. For the Dominican Republic, its location in the heart of the Caribbean places it at the intersection of North, South, and Central America, as well as key Atlantic shipping corridors.

This geographic advantage is more than a point of pride; it is the foundation for a national development strategy. As global supply chains become more interconnected and consumer expectations rise, the importance of logistics in the Dominican Republic has grown significantly—not only for international trade partners, but also for an actor that may seem small yet is increasingly influential: the final consumer.

The Consumer at the Center of the Supply Chain

How is it possible to ensure, for example, that during a moment of celebration or achievement, a premium spirit is simply there, available? Behind that simple gesture—grabbing a bottle from a supermarket shelf or receiving it via home delivery- are countless efforts, international collaborations, optimized warehouse planning, transportation networks, inventory forecasting models, and advanced technologies that track and move goods in real time. The final consumer increasingly expects speed, transparency, sustainability, and reliability. Companies know that a single delayed shipment or an unavailable product can affect loyalty and brand credibility.

This consumer-driven perspective reinforces why logistics is no longer simply about moving goods; it is about ensuring experience. The efficiency of logistics in the Dominican Republic will determine whether companies succeed in meeting those expectations with precision and consistency.

Learning from Global Leaders

Singapore has world-class port operations, excellent infrastructure, and a strong banking sector. These and other factors have allowed it to become an exemplary and competitive logistics economy. It ranked first in the World Bank’s 2023 Logistics Performance Index. In that same ranking, the Dominican Republic rose six positions, moving from 85th to 79th. This improvement signals clear steps forward in infrastructure, customs processes, cargo tracking capabilities, regulatory efficiency, and intermodal transportation.

Although the gap between Singapore and the Dominican Republic remains significant, the upward trajectory highlights the country’s growing role in regional trade. The government continues to advance a long-term strategy to become a logistics hub or “logistics nation.” At the recent Third United Nations Ocean Conference in France, President Luis Abinader reaffirmed the country’s commitment:

“We accept the challenge of becoming a regional logistics hub, which represents both an opportunity and a great responsibility.”

Innovation and Technology: The New Frontiers

According to KPMG’s analysis of 2024 supply chain trends, innovation, technology, and the adaptability of transportation systems are crucial to responding to growing sector demands. The use of generative artificial intelligence is becoming increasingly essential to analyze the vast amount of data produced daily in international trade—data related to routes, pricing, warehousing, weather patterns, supplier reliability, and consumer purchasing patterns.

For logistics in the Dominican Republic, digital transformation represents both an opportunity and a challenge. The companies that integrate real-time tracking systems, predictive analytics, and smart inventory tools will gain a competitive advantage in customer satisfaction and cost efficiency.

A Perspective from the Industry: Pernod Ricard

Deybi de León, a distribution and logistics specialist at Pernod Ricard in the Dominican Republic, has a comprehensive view of the sector. The company operates more than 100 production sites worldwide—40% distilleries and 60% bottling and distribution centers.

“The sector has become highly complex and competitive, in part because we must ensure that each product reaches the right consumer, at the right moment, sustainably and efficiently,” he explains. “At Pernod Ricard, we take great pride in our brands and collaborate constantly with suppliers and farmers to serve customers and consumers worldwide. We dedicate time and resources to research and development. The greatest challenge is continuing to grow as a business while maintaining our commitment to our people and our natural environment.”

This reinforces an essential idea: logistics in the Dominican Republic must evolve not only to meet commercial objectives but also to align with global sustainability commitments.

Sustainability and Responsibility as Core Values

De León emphasizes that the obligation is twofold: achieving operational efficiency while minimizing environmental impact. Companies operating in the country are taking this challenge seriously. Pernod Ricard, for example, works under four pillars of Sustainability & Responsibility: nurturing the land, empowering people, promoting a circular economy, and encouraging responsible hosting. Each pillar includes ambitious goals that push the company to innovate and raise standards both internally and among partners. The goal is clear: ensure “Good times from a Good Place.”

A Legal Framework to Boost Growth

With the recent enactment of Law 30-24 in the logistics sector, the country not only improves regulatory clarity and introduces tax incentives, but also opens the door to activities that will energize the industry. Logistics centers can now perform consolidation, deconsolidation, storage, packing, repacking, labeling, assembly, and lot formation, among other value-added services. This creates greater product availability, more competitive pricing, and improved service levels for consumers.

“The final buyer has become more demanding, and only products backed by a well-oiled logistics system will always be available at the right time and place. Those products will win the consumer’s heart,” De León emphasizes.

Toward a More Competitive and Connected Future

The value-added focus now being encouraged in the country is essential for positioning logistics in the Dominican Republic as a driver of national progress. If executed carefully, the Dominican Republic can become not only a regional logistics hub with international reach but also a model of how logistics can contribute to sustainable economic development while improving consumers’ everyday lives.

The evolving diplomatic and economic dynamic between Panama and Germany is entering a promising new phase marked by expanded cooperation, strategic investment, and deeper integration into global value chains. The recent incorporation of Panama as an Associate State of the Southern Common Market (MERCOSUR) has set the stage for new commercial possibilities that connect Latin America more closely with Europe. This milestone highlights Panama’s growing role as a geopolitical and geoeconomic bridge between continents, and underscores its commitment to advancing collaborative trade, innovation, and sustainability-driven growth.

A Strategic Meeting at the XVI Ministerial Conference of UNCTAD

The latest advancement in bilateral relations took place during the XVI Ministerial Conference of the United Nations Conference on Trade and Development (UNCTAD). Panama’s Minister of Commerce and Industries, Julio Moltó, held a bilateral meeting with Dr. Thomas Steffen, State Secretary of the Federal Ministry for Economic Affairs and Energy of Germany. The purpose of the meeting was to identify new investment opportunities, strengthen technical cooperation, and enhance commercial exchange between Panama and Germany.

During the dialogue, Minister Moltó emphasized Panama’s intention to attract high-value foreign investment, particularly in sectors aligned with global economic transformation, such as pharmaceuticals, digital technology, logistics services, renewable energy infrastructure, and financial services. These sectors not only diversify Panama’s national economy but also reinforce its positioning as a regional hub for business operations.

Panama’s Competitive Advantages as a Global Logistics and Services Hub

One of Panama’s most defining strengths is its integrated logistics platform. The Panama Canal, through which approximately 6% of global maritime trade flows, remains one of the world’s most essential commercial routes. The country’s interoceanic connectivity is complemented by state-of-the-art port infrastructure on the Atlantic and Pacific coasts, an extensive network of free trade zones, and Tocumen International Airport, widely recognized as the “Hub of the Americas.”

Minister Moltó emphasized that these advantages, combined with Panama’s network of 23 trade agreements granting preferential access to more than 60 international markets, secure Panama’s role as a competitive gateway for global commerce. This strategic positioning is particularly relevant for companies seeking to expand into Latin American and Caribbean markets, as well as those looking to strengthen value chains in sectors such as manufacturing, e-commerce distribution, and nearshoring operations.

Panama Becomes an Associate State of MERCOSUR: A New Era of Integration

Panama’s recent incorporation as an Associate State of MERCOSUR opens an important chapter in its international economic relations. This status provides new mechanisms for strengthening export development, fostering industrial cooperation, and enhancing trade harmonization practices with major South American economies, including Brazil, Argentina, Uruguay, and Paraguay.

According to Moltó, the integration advances Panama’s role as a partner for Europe and reinforces the country’s potential as a logistical platform capable of supporting re-export strategies. For Panama and Germany, this development offers fresh avenues for joint projects in sustainable agriculture, manufacturing, technology transfer, and green energy transition, aligned with international environmental commitments and responsible industrial practices.

Stable Legal Framework and Business-Friendly Environment

Foreign companies evaluating expansion opportunities often prioritize predictability, transparency, and legal stability. In this regard, Panama’s regulatory framework, investment protection agreements, and special economic regimes have proven attractive to multinational corporations. More than 180 multinational companies currently operate in Panama under the Multinational Headquarters Law (SEM) and other investment incentive frameworks that encourage long-term business establishment.

These companies benefit not only from operational cost efficiencies and strategic geographic positioning, but also from access to a highly skilled, multilingual workforce, supported by training programs and international academic partnerships. Moltó reaffirmed Panama’s commitment to maintaining a reliable and transparent environment that welcomes international capital while protecting both investors and national development priorities.

Germany’s Perspective: Strengthening Cooperation and Sustainable Growth

Dr. Thomas Steffen acknowledged Panama’s significant potential as a strategic ally for Europe. He highlighted that Panama and Germany share common goals related to market modernization, innovation in industrial supply chains, and the strengthening of sustainable economic models. Steffen also referenced the importance of concluding negotiations on the trade agreement between the European Union and MERCOSUR, noting that such an agreement would further facilitate business, reduce trade barriers, and encourage partnership across key sectors.

Germany’s long-standing reputation in high-technology manufacturing, engineering, and renewable energy positions it as a valuable partner for Panama’s development ambitions. German companies are already active in logistics, pharmaceuticals, industrial equipment, and environmental services in Panama, and the renewed diplomatic commitment opens the door to deeper collaboration in digital transformation, green mobility, port modernization, and cybersecurity infrastructure.

Shared Priorities: Innovation, Sustainability, and Regional Competitiveness

Both delegations underscored the importance of promoting innovation and sustainable investment as engines for mutual economic growth. In particular, the transition toward cleaner energy systems presents major opportunities for Panama and Germany to cooperate in renewable electricity generation, hydrogen development, energy efficiency solutions, and carbon-neutral logistics.

Furthermore, Germany’s leadership in technical education and vocational training could support Panama’s workforce development goals—an essential factor for strengthening productivity and competitiveness in globally integrated sectors.

Moving Forward: Strengthening Public-Private Dialogue

The meeting concluded with a reaffirmed commitment to deepen communication channels between government institutions and private sector representatives in both countries. Strengthening these connections will be vital for accelerating investment projects, designing new trade facilitation mechanisms, and promoting cross-sector business missions.

As Panama and Germany continue to engage in economic diplomacy, the potential for cooperative development grows. Their shared vision, built on principles of innovation, legal certainty, and sustainable growth, will contribute not only to stronger bilateral ties but also to the advancement of economic integration between Latin America and Europe.

Saudi Arabia has emerged as one of the most dynamic economic actors in the Middle East, advancing a comprehensive diversification strategy through its Vision 2030 plan. This context presents meaningful opportunities for Peru, which continues to pursue market diversification and stronger commercial ties beyond its traditional partners in North America, Europe, and Asia. As part of this approach, the relationship between Peru and Saudi Arabia is gaining new relevance, not only through growing trade volumes but also through rising investment flows and diplomatic engagement focused on long-term economic cooperation.

Saudi Arabia is currently the third-largest destination for Peruvian exports to the Middle East. With a population exceeding 35 million and a GDP of US$1.2 trillion in 2024 according to the World Bank, Saudi Arabia represents a high-income consumer market with substantial purchasing power. Its per capita GDP of over US$35,000 places it among the wealthiest countries in the region, creating strong demand for high-quality imported food products, technological services, and industrial inputs. In this context, Peru’s competitive agricultural export sector and its growing capabilities in mining, energy, and services create a favorable basis for expanding economic ties.

Growing Peruvian Exports to Saudi Arabia

Between January and August 2025, Peruvian exports to Saudi Arabia reached US$8.6 million, a 16.6% increase from the same period in 2024. Full-year exports in 2024 totaled US$17.2 million, surpassing the previous peak of US$16.8 million recorded in 2015. Although the volume remains modest relative to Peru’s global export portfolio, the upward trend is a strong indicator of rising demand and growing business familiarity between the two markets.

Agro-exports dominate Peru’s shipments to Saudi Arabia, accounting for roughly 87% of total export value. This reflects Peru’s global leadership in supplying high-value fruits, superfoods, and specialty agricultural goods. Fresh blueberries have emerged as the leading export product, generating US$4.2 million in the first eight months of 2025—a remarkable 172% year-on-year increase driven mainly by a 205% jump in export volume. Fresh pomegranates also registered notable gains, with export value rising 202% and volume increasing 229%.

These trends are closely aligned with Saudi Arabia’s broader food import profile. The country imports around 80% of its food due to limited arable land and water resources, ensuring sustained long-term demand for agricultural imports. In 2024, the nation imported nearly US$2 billion in fresh fruits alone—a 5.7% increase over the previous year, according to the International Trade Centre. Peru is well-positioned to expand its participation in this segment, particularly in products where it already has global market strength. For example, Saudi imports of avocados grew by 13% in 2024, while blueberry imports rose by 20%. Green coffee beans also represent a significant opportunity, given Saudi Arabia’s growing specialty coffee culture and the country’s expanding coffee shop sector.

Latin America’s Role in the Saudi Market

The broader region also offers context for the evolving relationship between Peru and Saudi Arabia. Saudi imports from Latin America and the Caribbean grew at an average annual rate of 3.4% over the last decade, reaching US$8.3 billion in 2024. Brazil leads as the region’s principal supplier, accounting for 46% of Saudi imports from Latin America—mainly driven by meat, sugar, and grains. Mexico and Argentina follow, supplying processed foods, beverages, and agricultural commodities. Ecuador’s strong position in the Saudi banana market and Chile’s presence in apples and wood products highlight the competitive environment in which Peru must position itself.

Peru’s export growth potential depends on differentiation, both through product quality and through developing long-term commercial relationships with importers, distributors, and retail chains. Participation in international trade fairs, regional business missions, and halal certification initiatives will be essential to consolidating Peru’s presence in the Saudi market.

Investment and Strategic Cooperation

Beyond trade, investment flows are becoming a foundational pillar in the relationship between Peru and Saudi Arabia. Saudi Arabia’s Vision 2030 is an ambitious strategy to reduce dependence on oil revenues and build new economic engines centered on tourism, renewable energy, logistics, mining, and advanced manufacturing. To accomplish this, Saudi Arabia has deployed significant capital through its Public Investment Fund (PIF), one of the world’s largest sovereign wealth funds.

Saudi investments in Latin America are becoming increasingly visible. Brazil has attracted Saudi capital in the food processing, mining, and aerospace sectors. A notable example is the joint venture between Brazilian meat processor BRF and Saudi Arabia’s Halal Products Development Company, which strengthens Brazil’s role as a key supplier of halal-certified food products. In Chile, Saudi Aramco acquired Esmax in 2024, gaining access to the Chilean fuel and convenience retail market.

Peru has also begun to attract Saudi investment interest. In 2024, MidOcean Energy—a global investment vehicle backed by Saudi Aramco—acquired a 35% stake in Peru LNG, signaling confidence in the long-term development of Peru’s natural gas sector. Likewise, ongoing discussions between the Peruvian Ministry of Energy and Mines and Saudi Arabia’s Ministry of Industry and Mineral Resources aim to finalize a memorandum of understanding on technical cooperation in the mining sector. This agreement, expected to be signed during an upcoming official visit, could facilitate new collaboration in mineral exploration, value-added processing, and industrial technology transfer.

Looking Toward a Strategic Partnership

As global economic dynamics evolve, both countries see diplomatic and commercial advantages in strengthening ties. For Saudi Arabia, Latin America offers a reliable food supply, resource diversification, and new investment opportunities in stable, growing economies. For Peru, closer relations with Saudi Arabia offer access to a high-income consumer market, opportunities for joint investment in mining and energy, and knowledge exchange in logistics, digital infrastructure, and sustainable development.

In this sense, the relationship between Peru and Saudi Arabia is not only commercially practical but strategically aligned with both nations’ long-term goals. Peru’s agricultural, energy, and mineral resources complement Saudi Arabia’s investment capacity and technology-led development agenda. Similarly, deeper cooperation could support Peru in expanding export markets, improving logistics infrastructure, and strengthening its position within global supply chains.

Conclusion

The emerging partnership between Peru and Saudi Arabia presents significant potential for sustained economic cooperation. With complementary economic advantages, shared interests in market diversification, and expanding trade and investment linkages, the two countries are positioned to evolve from transactional commercial exchanges into a broader strategic alliance. As both economies look toward long-term growth, innovation, and international cooperation, strengthening ties between Peru and Saudi Arabia offers a promising opportunity for mutual development and future prosperity.

A letter was sent to the U.S. Department of Commerce by Costa Rican Minister Manuel Tovar.

Costa Rica’s government is fighting off what it says is the threat of tariffs on medical devices it exports to the United States. The devices have been the mainstay of the Central American nation’s export economy and a vital source of supply for the United States healthcare system, which depends on efficient and reliable access to medical technologies. Minister of Foreign Trade Manuel Tovar this week delivered a letter to the U.S. Department of Commerce (DoC) on the strategic importance of Costa Rican production to the national security, health, and competitiveness of the United States.

“The security and resilience of the United States healthcare system has proven, time and time again, to be critically dependent on the high performance, agility, and cutting-edge technology of Costa Rican medical device manufacturing,” Tovar said in the official document. “In light of these factors, Costa Rica does not hesitate to consider its exports of medical devices to be a pillar of the national and regional security of the United States.”

The letter, Costa Rica’s official response to a U.S. proposal to review medical device imports under Section 232 of the Trade Expansion Act, is the most recent salvo in a back-and-forth between Costa Rican officials and the DoC. The review, which is now underway, has opened a window during which the Trump-era provision could be used by Washington to impose tariffs or other trade restrictions in the event that it is decided imports may threaten national security.

The Importance of the Section 232 Probe

The Section 232 investigation initiated by the United States will explore whether the current level of imported medical devices could be seen to undermine the country’s strategic preparedness or domestic production capacity in the event of a major health emergency or security crisis. At stake is the supply of a wide range of essential and lifesaving products, from surgical and diagnostic equipment to prosthetic implants and personal protective equipment used throughout the United States healthcare system.

Costa Rica argues that cooperation between both countries in the sector has not only been economically beneficial but strategically indispensable. During the review consultation period, officials from the Ministry of Foreign Trade (COMEX) and Trade Representative (COMCE) noted that Costa Rican medical device manufacturing facilities have built a global reputation for adhering to the strict regulatory and quality requirements imposed by the United States, such as those of the U.S. Food and Drug Administration (FDA), as well as international ISO standards.

“As a sovereign nation with a democratic political and legal system based on transparency, the rule of law, and international cooperation, Costa Rica’s compliance with international and U.S. standards and regulations ensures companies operating in the country can do so efficiently and with high-quality production,” Minister Tovar explained.

Costa Rica: A Key Ally in a Resilient U.S. Healthcare System

The United States healthcare system is sustained by a network of secure and diversified supply chains. The COVID-19 pandemic highlighted just how critical geographically proximate partners like Costa Rica have become to providing continuity and stability to the industry when demand spikes or global disruptions occur. Costa Rica’s rapid response to the surge in U.S. medical demand during the height of the crisis helped it to ramp up production and make its facilities some of the only available in the world at the time.

Data from COMEX reveals that U.S.-bound medical device exports from Costa Rica increased 39% between 2020 and 2021, despite global supply chain strains. U.S. companies with facilities in Costa Rica were able to operate with much greater stability and respond quickly to shortages, while many suppliers in distant regions faced severe delays and shutdowns.

Facilities closer to the U.S. benefit from shorter lead times, reduced shipping costs, and faster response times—advantages that are especially critical in the United States healthcare system, where timely access to equipment can determine the availability of essential care.

U.S. Corporate Strategy Integrated With Costa Rica’s Growth

Costa Rica is home to over 90 multinational medical device companies, including Medtronic, Boston Scientific, Cardinal Health, Abbott, and Baxter. Several of these have facilities producing Class II and Class III medical devices—some of the most technologically advanced on the market and used in the most critical healthcare applications.

“In allowing U.S. companies to centralize domestic resources on research, development, and innovation, the current supply chain structure strengthens U.S. technological leadership in a competitive global market, reinforces the continuity of hemispheric supply, and supports the expansion of U.S. exports worldwide,” the statement reads.

The integrated production model ensures that the United States healthcare system benefits from cross-border collaboration that enhances capacity, reliability, and readiness for future demand.

Closer Ties Through CAFTA-DR

Costa Rica also stressed the extent to which bilateral cooperation has been strengthened by the CAFTA-DR free trade agreement. In effect, since 2009, the trade pact has harmonized regulations, expanded market access, and encouraged high-tech manufacturing investment. This enabled Costa Rica to become the largest exporter of medical devices in Latin America and one of the top global suppliers to the United States.

Integration has also extended to institutional and workforce development, providing multinational companies with operational continuity supported by political stability and a highly trained talent base.

Positioned to Compete With Global Counterparts

Competition in the global medical device industry is intense, but Costa Rica argues that what matters now is not just cost but reliability, transparency, and national security alignment. In times of crisis or market volatility, suppliers in closer, more stable regions can respond faster and more consistently than distant or politically unstable counterparts.

Conclusion

In an era where competition and geopolitics increasingly shape how strategic supply chains are managed, Costa Rica’s message to Washington is clear: the strength of the United States’ healthcare system is tied to the stability of Costa Rica’s production ecosystem. For the United States, defending its global leadership in medical technology means reinforcing—not restricting—this partnership.

At a key moment of parliamentary debate and budgetary review, the Uruguayan government seeks to reshape its tax system with a dual objective: to boost state revenue without affecting middle- and lower-income sectors, and to maintain the country’s appeal to foreign investors. The reform, which combines selective incentives with new tax burdens, aims to reinforce Uruguay’s position as one of the most stable and reliable destinations in Latin America.

Recognized for its strong institutions, legal security, and economic predictability, Uruguay now seeks to consolidate its international reputation through a more balanced fiscal framework. The initiative, led by the Ministry of Economy and Finance, aims to harmonize two goals that often come into conflict: tax pressure and fiscal competitiveness. This reform represents a pivotal evolution of fiscal policy in Uruguay, reflecting a strategy designed to preserve stability while modernizing revenue structures.

Continuity as a Defining Feature

One of the pillars of the government’s strategy is to preserve the continuity of its fiscal and investment policies, a hallmark that has distinguished Uruguay from its neighbors. Stability remains the country’s main asset in a volatile regional context. In this regard, the Executive does not plan to alter the rules for obtaining tax residency for foreigners, but rather to adjust the conditions of the tax exemption or “tax holiday” regime, particularly for large investment cases.

Up to now, foreign individuals who chose to establish tax residency in Uruguay could access tax benefits for a period of ten years, provided they met specific requirements related to physical presence (183 days or more per year) or investment. The new proposal maintains these foundations but tightens the conditions for those opting for the investment regime by raising the minimum required level of economic contribution and establishing a renewal system conditioned on the reinvestment of capital.

This adjustment seeks to ensure that fiscal benefits translate into a real impact on the national economy, preventing Uruguay from being perceived merely as a tax haven. Specifically, current beneficiaries of the tax holiday may extend their exemption for up to twenty years, provided they meet additional commitments in productive investment, innovation, or job creation. This reflects a pragmatic approach within fiscal policy in Uruguay, aimed at combining competitiveness with responsible economic stewardship.

A Strategy to Attract Capital and Talent

The Ministry of Economy believes that this new approach could energize key sectors such as real estate, technology startups, venture capital, and international financial services. The goal is to attract high-net-worth individuals who not only reside in Uruguay but also invest and participate actively in its development.

During the pandemic, Uruguay witnessed a notable influx of high-wealth residents from neighboring countries and Europe, many of whom were drawn by its health stability, social order, and tax regime. Authorities acknowledge that this phenomenon had a multiplier effect on the economy: it boosted demand in the real estate sector, strengthened investment in local projects, and stimulated consumption in luxury goods and specialized services.

With the new reform, the country aims to maintain this trend under a more demanding and sustainable framework. “Uruguay can consolidate itself as a regional hub for innovation and capital, combining quality of life, legal certainty, and a competitive tax system,” sources from the Ministry highlight. The integration of these goals demonstrates how fiscal policy in Uruguay serves as a strategic tool for promoting long-term investment and economic resilience.

Balancing Revenue and Attractiveness

One of the most sensitive aspects of the reform lies in increasing tax revenue without discouraging investment. In this regard, the Executive projects an additional income of about USD 600 million annually, thanks to a series of tax changes ranging from the taxation of foreign income to the adoption of international standards.

Among the most significant measures is the implementation of the global minimum tax on multinationals, aligned with the agreements of the Organisation for Economic Co-operation and Development (OECD). This tax, which will apply to large corporations operating in the country, could contribute between USD 350 million and USD 400 million annually to public finances. Although it implies a higher tax burden for companies, Uruguay’s framework would remain more favorable than that of other countries, thereby preserving the nation’s relative competitiveness in the region.

Another notable change focuses on taxing capital gains generated abroad, particularly those derived from the sale of shares or holdings in non-resident companies. Until now, such gains were not subject to taxation, creating a gap in terms of fiscal fairness. With the new legislation, the government expects to collect around USD 55 million annually from this measure, while also closing potential avenues for tax evasion and aggressive fiscal planning. These measures underscore how fiscal policy in Uruguay is evolving toward greater equity and global integration.

Debate Over Banking Secrecy

The most controversial component of the project concerns banking secrecy. The government seeks to allow the General Tax Directorate (DGI) direct access to financial information without requiring judicial authorization, a measure that would strengthen oversight and the fight against tax evasion. However, this proposal faces political resistance in Parliament and from some business sectors, who fear it could undermine confidence in Uruguay’s financial system.

The lack of a legislative majority could prompt the Executive to postpone this initiative to prioritize other elements of the fiscal package, though the debate remains ongoing. In any case, the global trend points toward greater financial transparency, consistent with international standards for the automatic exchange of tax information.

Changes to the Personal Income Tax (IRPF) and the Non-Resident Income Tax (IRNR) are geared toward a more comprehensive model, with an expanded tax base that includes foreign income. This marks a step toward a partially global taxation system in which Uruguayan residents with income abroad also contribute to national revenue.

Although the measure may generate resistance among some taxpayers, experts believe it strengthens the coherence of the fiscal system and reinforces its legitimacy in the eyes of the public by reducing perceptions of excessive privileges for specific sectors.

Beyond the technical adjustments, the reform is part of a long-term development strategy that seeks to position Uruguay as a destination for investment, residence, and talent. The Director of Free Zones and other divisions of the Ministry of Economy have emphasized that the goal is not limited to attracting financial capital but also to promoting innovation, creating qualified jobs, and fostering productive diversification.

The plan includes technological modernization of fiscal processes, the promotion of investment funds dedicated to innovation and audiovisual production, and the expansion of the creative economy, which has gained prominence in recent years. All of these initiatives are part of the five-year budget currently under discussion in Parliament, regarded as the cornerstone of the country’s economic policy for the coming years.

Uruguay’s tax reform combines revenue-enhancing measures with selective investment incentives. While some analysts interpret it as an effort to increase the tax burden on the most privileged sectors, others view it as an opportunity to consolidate a fairer and more competitive model.

The main challenge will be ensuring that the country remains attractive to foreign capital while maintaining social equity and fiscal sustainability. Ultimately, Uruguay seeks to uphold its reputation for stability while taking a decisive step toward a more modern, inclusive, and globally aligned tax system. This comprehensive approach confirms that fiscal policy in Uruguay is becoming a central pillar in the nation’s long-term strategy to balance growth, equity, and international competitiveness.