This was announced by the company’s CEO, Ted Sarandos, at the National Palace.

On Thursday, February 20, 2025, Netflix’s CEO, Ted Sarandos, announced during the “La Mañanera del Pueblo” press conference with President Claudia Sheinbaum that the Netflix investment in Mexico would total one billion dollars over the next four years to produce films and TV series in the country. The announcement was made at the National Palace.

“President Sheinbaum, at Netflix, we share your vision of a vibrant and prosperous Mexico full of growth and opportunities, and we want to help make that a reality. That’s why I’m pleased to announce that Netflix will invest one billion dollars in the production of TV series and movies in Mexico,” said the executive in the Treasury Hall.

The Economic Impact of the Netflix Investment in Mexico

Ted Sarandos emphasized that this Netflix investment in Mexico will contribute to the growth of Mexico’s audiovisual industry, which contributes 3 billion dollars to the country’s Gross Domestic Product (GDP), “and will help create jobs and opportunities across the country.”

“The Netflix investment in Mexico will be focused on local productions, but we will also be bringing global productions to the country,” Sarandos stated.

A Special Relationship Between Mexico and Netflix

He highlighted that Mexico “holds a special place in Netflix’s history,” as it was in Mexico that Netflix produced “Club de Cuervos” ten years ago, the first production outside of the United States. This marked a significant milestone for the platform’s expansion into international content production. Additionally, Sarandos proudly mentioned the production of “Roma,” the film directed by Mexican filmmaker Alfonso Cuarón, which became Netflix’s first movie from Mexico to win an Academy Award for Best Foreign Language Film.

Furthermore, the company opened its Latin American headquarters in Mexico City in 2020, while Sheinbaum was the head of government in the capital. Since then, Netflix’s workforce in Mexico has expanded more than tenfold.

“Being local is very important for us, so all of our series and movies are created in collaboration with local production companies and partners. Every single one means that we are investing in the creative community and supporting talented people,” Sarandos added.

Mexico’s Growing Role in Global Entertainment

President Sheinbaum said, “Mexico is so remarkable that they decided to invest here.”

She went on to emphasize that approximately 300,000 jobs had been created after Netflix’s arrival in Mexico City, stating, “This is not just about showcasing Mexico to the world through Netflix series, which is certainly crucial for Mexico to be seen globally, but also about the immense economic development and the number of jobs created by production and tourism, of course.”

Netflix’s investment in Mexico represents a substantial step forward in its commitment to local content creation. It reflects the growing importance of the Mexican market in the entertainment industry and underscores the country’s increasing influence in global media production. Netflix’s commitment also illustrates a broader trend in the international entertainment sector, where platforms like Netflix, Amazon Prime Video, and others are increasingly looking to collaborate with local talent and production companies to create content that resonates with regional audiences while having global appeal.

Netflix’s decision to channel such significant resources into the Mexican market highlights Mexico’s potential as a production hub. With its rich cultural heritage, immense talent pool, and increasingly competitive film and TV production infrastructure, the country is well-positioned to continue to grow as a key player in global media production. Moreover, the economic impact of this investment goes beyond just the entertainment industry. The influx of resources into Mexico’s audiovisual sector will likely stimulate various related industries, including tourism, hospitality, technology, and logistics, all essential to supporting the production process.

A Long-standing Partnership with Local Filmmakers

The relationship between Netflix and Mexico has evolved over the years. Since its initial ventures in producing content like “Club de Cuervos,” Netflix has strengthened its ties with local filmmakers, producers, and actors, thus integrating itself deeply into the country’s cultural fabric. These collaborations elevate Mexican cinema and TV shows’ global profile and allow Mexican stories to reach international audiences.

One of the most notable examples of Netflix’s long-standing partnership with Mexican talent is the creation of “Roma,” which was a huge success not only at the Academy Awards but also in broadening the reach of Mexican cinema worldwide. The film’s success sparked interest in the Mexican film industry, inspiring new filmmakers to make waves on national and international stages.

Cultural Exchange and Job Creation through Netflix’s Commitment

In addition to the economic benefits of this investment, the partnership between Netflix and Mexico is expected to foster even greater cultural exchange. As Mexican filmmakers gain global recognition, the cross-pollination of ideas between cultures will likely inspire fresh and innovative storytelling. Furthermore, the increased production of Mexican films and series means more content will be available for international audiences, showcasing Mexico’s rich history, diverse culture, and dynamic society.

Expanding Opportunities in Creative Industries

Beyond just film and TV, the significant growth in local production is poised to create numerous job opportunities in the creative industries, such as scriptwriting, costume design, set construction, cinematography, and more. This is expected to fuel the growth of a highly skilled workforce, and Netflix’s investment will likely encourage further development and innovation in the country’s audiovisual sector.

A Stronger Future for Mexico and Netflix

The announcement of Netflix’s investment in Mexico signals a more profound commitment to the country and highlights its rising prominence in the global entertainment industry. By investing in local talent and production, Netflix reinforces its position as a streaming space leader while contributing to Mexico’s economic growth and cultural development.

As Mexico and Netflix continue to thrive, this partnership promises more groundbreaking content, exciting opportunities for local creators, and a more substantial global presence for Mexican stories in the years to come.

Ecuador, a country on the western edge of South America, offers a fascinating example of a developing nation with unique strengths and challenges. As the country continues its economic advancement, assessing its economic development involves considering various factors. These include the availability of natural resources, the strength of human capital, infrastructure, technological development, the quality of public institutions, and more. In this blog post, we’ll explore each of these aspects of economic development in Ecuador in detail, providing an in-depth analysis of the nation’s current situation.

Natural Resources

Ecuador has abundant natural resources, which are critical to its economic development. The country has vast oil, minerals, and agricultural land reserves, making it a significant player in the global commodities market. Oil extraction is a major driver of the Ecuadorian economy, and the country is one of South America’s top oil exporters. In addition to oil, Ecuador has considerable mineral resources, including gold, silver, and copper, which are becoming increasingly important as global demand for these metals rises.

Agriculture also forms a key part of the base for economic development in Ecuador, with the country being one of the world’s largest exporters of bananas, roses, and cacao. This diverse natural resource base has provided Ecuador with a steady source of export revenue, though it has also made the country vulnerable to fluctuations in global commodity prices.

However, despite these resources, concerns about over-reliance on oil make the economy highly susceptible to price shocks. The government’s efforts to diversify the economy by promoting non-oil sectors are vital for long-term economic stability.

Human Capital

Human capital is a critical component of Ecuador’s economic development. Ecuador has made significant strides in improving access to education and healthcare, which has resulted in a growing and more skilled workforce. Education programs at the primary and secondary levels have expanded, and the country has invested in increasing access to tertiary education. However, the quality of education remains a challenge, with rural areas facing barriers to quality schooling and a gap in educational outcomes between urban and rural populations.

The country’s healthcare system has also made advances, with life expectancy increasing and infant mortality rates decreasing over the years. Still, disparities in healthcare access between urban and rural regions limit the overall impact on economic development.

Additionally, while Ecuador has a relatively young population, a significant percentage of the workforce is still employed in informal sectors. This lack of formalization restricts the country’s ability to capitalize on its human capital fully.

Infrastructure

Infrastructure development is an essential determinant of economic development in Ecuador. The country has made significant investments in infrastructure, especially in the transportation sector. Roads, highways, and bridges have improved, facilitating regional trade and mobility. The port city of Guayaquil, Ecuador’s economic hub, boasts one of the most important ports on the Pacific coast, supporting trade exports.

However, Ecuador still faces considerable infrastructure challenges. The road network in remote areas remains underdeveloped, and access to electricity and clean water is inconsistent in rural zones. These issues hinder economic activity in certain areas and increase the cost of doing business in the country.

With internet penetration and mobile phone usage rising, Ecuador’s telecommunications infrastructure has grown. This has improved connectivity, especially in urban areas, but a digital divide remains, particularly in rural regions.

Technological Development

Ecuador is in the early stages of technological development compared to more developed economies. While some technological initiatives are gaining traction, such as innovations in farming practices in the agricultural sector, the overall rate of technological adoption remains low. This lack of widespread technological infrastructure limits greater productivity and economic development in Ecuador. The government has begun to invest in fostering innovation, mainly through initiatives to promote startups and technological ventures. The development of digital services and the growing presence of tech companies in the country suggest positive prospects. However, to keep pace with global advancements, there needs to be a stronger emphasis on innovation and research and development (R&D). 

Quality of Public Institutions

Public institution quality plays a vital role in economic development in Ecuador. However, the country has struggled with corruption, political instability, and inefficiency in public administration, which have hindered its ability to capitalize on its resources and fully foster economic growth. The rule of law remains weak in some areas, and there are concerns about the transparency and accountability of government institutions.

That said, recent efforts have been made to improve governance and strengthen public institutions, especially under newer administrations focusing on anti-corruption measures and reforms in the public sector. Improved governance will attract foreign investment and improve the overall business environment.

Economic Policies

Ecuador’s economic policies have undergone significant changes over the years, especially in response to the fluctuations in oil prices and the global financial landscape. The government has alternated between neoliberal and interventionist economic policies, which has led to uncertainty in economic planning. Ecuador’s reliance on oil revenue has led to fiscal imbalances, and the country has frequently resorted to borrowing to finance its budget deficits.

Ecuador also adopted the U.S. dollar as its official currency in 2000, which has provided stability in terms of inflation but has limited the government’s ability to manipulate exchange rates and control monetary policy. As a result, Ecuador has faced challenges in managing economic growth during periods of external shocks.

Level of Industrialization

Ecuador remains an economy primarily dependent on agriculture, oil extraction, and raw material exports, with relatively low levels of industrialization. While the country has some industrial sectors, such as food processing and textiles, it has not yet reached the level of industrialization seen in more developed nations. This limits the economy’s diversification and ability to compete in high-value manufacturing sectors.

The country’s industrial base is gradually expanding, with initiatives aimed at boosting non-oil exports and developing sectors like tourism and agribusiness. However, Ecuador still faces significant barriers to industrial development, including high energy costs, insufficient infrastructure, and limited access to skilled labor.

Access to Capital and Credit

Access to capital and credit is another essential factor that affects economic development in Ecuador. While the country has made progress in improving access to credit, especially for small and medium-sized enterprises (SMEs), challenges remain. High lending rates, limited access to long-term credit, and a relatively underdeveloped banking sector constrain entrepreneurship and business expansion.

Ecuador’s financial sector is also highly dependent on remittances from its large expatriate community, especially in the United States. This reliance on external flows can create economic volatility, especially during global financial crises.

Geographic Location

Ecuador’s geographic location provides both opportunities and challenges for its economic development. Its position on the equator gives it a unique biodiversity and agricultural production advantage. The country is also strategically located on the Pacific coast, making it an important player in maritime trade.

However, Ecuador’s small size and landlocked nature (due to the Andes mountains and the Amazon rainforest) can create logistical challenges. The country’s remote regions face barriers to accessing global markets, and it has to rely on neighboring countries for the transshipment of goods.

Demographics

Ecuador has a youthful and diverse population, with a median age of approximately 27 years. This demographic profile offers a potentially dynamic workforce. However, significant challenges exist, such as high poverty levels, especially in rural areas, and inequality in income distribution and access to services.

The country also faces urbanization trends, with people moving from rural areas to cities for better economic opportunities. While urbanization can drive economic growth, it also pressures urban infrastructure and social services.

Cultural and Social Factors

Cultural and social factors play an essential role in Ecuador’s economic development. The country is home to diverse indigenous, Afro-Ecuadorian, and mestizo populations, and maintaining social harmony among these groups is essential for long-term stability. Ecuador has made strides in promoting social inclusion, primarily through constitutional reforms that recognize the rights of indigenous peoples.

However, social inequality remains a significant challenge, with rural and indigenous communities facing barriers to education, healthcare, and economic opportunities. These disparities hinder the country’s overall development and contribute to social unrest.

Global Economic Integration

Ecuador’s global economic integration has been a double-edged sword. On one hand, the country benefits from its trade agreements, including its participation in regional trade groups such as the Andean Community and the Union of South American Nations (UNASUR). On the other hand, its overreliance on oil exports and raw materials has made it vulnerable to global market fluctuations.

In recent years, Ecuador has sought to diversify its trading partners, focusing on markets outside Latin America, such as China, the European Union, and the United States.

Environmental Sustainability

Ecuador has made significant strides in promoting environmental sustainability. The country is home to some of the world’s most biodiverse ecosystems, including the Galápagos Islands, and has been a leader in advocating for climate change action. However, balancing economic growth with environmental protection remains a challenge, especially with the pressure to exploit its natural resources.

The country has tried to protect its rainforests and biodiversity, but illegal logging, oil drilling, and mining threaten its natural heritage. The government’s commitment to sustainable development will be a critical factor in determining the future trajectory of economic development in Ecuador.

Political Stability and Security

Ecuador’s political stability and security have improved in recent years, but the country still faces challenges in these areas. Political turmoil, protests, and leadership changes have often disrupted the country’s economic performance. In recent years, concerted efforts have been made to strengthen the rule of law and ensure greater security for citizens and businesses.

The security situation in Ecuador is generally stable, but crime, particularly in urban areas, remains a concern for both locals and tourists.

Innovation and Entrepreneurship

Innovation and entrepreneurship are increasingly crucial to Ecuador’s economic development. The country has a growing startup ecosystem focusing on technology and sustainable ventures. However, entrepreneurship remains hampered by limited access to capital, bureaucratic obstacles, and a lack of a strong innovation culture.

Despite these challenges, the country’s young population, combined with a growing interest in tech and innovation, presents promising opportunities for fostering a more diversified and sustainable economy in the future.

Conclusion

Economic development in Ecuador is a complex and multifaceted issue. The country has significant advantages, including its natural resources, young population, and growing infrastructure. However, it also faces political instability, reliance on oil, social inequality, and environmental sustainability challenges. To continue progressing, Ecuador must strengthen its human capital, diversify its economy, improve public institutions, and foster innovation. With careful economic policies and strategic investments, economic development in Ecuador can unlock its full potential and achieve sustained economic growth in the years ahead.

A delegation from Turkey arrived in San Salvador the week of February 17, 2025, to sign agreements with Salvadoran business organizations and the government to increase commercial flow between the two countries. The delegation of Turkish entrepreneurs came to the country to build relationships with their Salvadoran counterparts and explore business opportunities in various sectors. The series of bilateral meetings resulted in the signing of agreements to enhance trade relations between the two nations.

Strengthening Trade Relations

Members of the Turkish Foreign Economic Relations Board (Deik, by its Turkish acronym) met with senior representatives of the Chamber of Commerce of El Salvador (Camarasal), the Corporation of Exporters of El Salvador (Coexport), and the Salvadoran Association of Industrialists (ASI), as well as with government officials. After the discussions, Turkish entrepreneurs expressed interest in the energy, technology, digital assets, and mining sectors.

“We have 10 companies with a Turkish business seal in agriculture, coffee, technology, mobile networks, digital assets, cryptocurrencies, precious metals, and education. These companies are interested in engaging with Salvadoran counterparts, particularly in technology, agriculture, precious metals, and mining,” explained Turkey’s ambassador, Gül Büyükerşen.

Virtual Meetings and Future Collaboration

The diplomat added that the Turkish business delegation also met with Invest in El Salvador officials, the Ministry of Foreign Affairs, the Ministry of Economy, the Ministry of Agriculture, the Coffee Institute, Siget, and CEL, where they signed memorandums of understanding. “We hope we can make the most of all these meetings to increase bilateral relations between Turkey and El Salvador,” she said. The ambassador noted that an agreement was made for entrepreneurs to have virtual meetings every three months, and once an opportunity arises, Salvadorans will visit Turkey.

Ambitions to Boost Bilateral Trade

Regarding bilateral trade, the ambassador highlighted that the current exchange is very low, amounting to only $20 million, and they aim to increase this figure, which is the purpose of the business delegation’s visit. According to data from the Central Reserve Bank (BCR), exports to Turkey in 2024 totaled $1.3 million, while imports from Turkey amounted to $33.5 million.

First Visit of Turkish Business Delegation

Meanwhile, Ali Galip Ilter, president of the Turkey-Latin America and Caribbean Business Council, emphasized that this was the first visit by a Deik delegation to El Salvador. Still, after the meetings, he believes it won’t be the last. The Turkish businessman highlighted that his country has undergone an economic transformation, which has increased commercial volume.

“It is very interesting for Turkish entrepreneurs to use El Salvador as a hub, and Turkey can also be a hub for Salvadoran businesses to access a larger market. To achieve mutual growth, Turkish and Salvadoran entrepreneurs must work more closely together,” he said.

Opportunities in the Port Sector and Beyond

Galip Ilter also noted “extraordinary opportunities” and highlighted the investment by the Turkish company Yilport, which will operate the ports of Acajutla and La Unión for the next 50 years. Yilport will hold 80% of the operation, while Cepa (the Executive Port Authority) will manage the remaining 20%. Economy Minister María Luis Hayem, who also mentioned Yilport’s investment in her speech, said, “We are very focused on providing all the conditions that companies need to grow, operate, and establish themselves in El Salvador.”

In addition to exploring opportunities in the port sector, the Turkish delegation discussed a broad range of business opportunities in El Salvador across industries such as technology, agriculture, and energy. 

Growing the Scope of Business Opportunities in El Salvador

Carlos Chávez, the second vice president of Camarasal, explained that after meetings with Turkish entrepreneurs, a convention was signed with Deik to increase commercial ties between both countries. “This agreement establishes a path for growth in exports and imports. It also covers the possibility of potential investments in El Salvador by Turkish companies to export to Latin America,” the leader noted.

Chávez mentioned that the Turkish delegation included entrepreneurs from diverse sectors, such as machinery, software, investment products, electricity, and electromobility. “Interestingly, there is a wide range of possible services or products that could be offered, or even Turkish companies could come here to create their investments and bring their expertise,” he said.

Exploring the Energy Sector and Beyond

When asked if Turkish entrepreneurs expressed interest in any specific energy project, Chávez responded that this first visit was an opportunity for them to understand the dynamics in El Salvador and how opportunities are opening up.

“In the energy sector, they have not brought a specific project yet, but from what we’ve discussed, they have been given ideas of what they could do. They’ve emphasized the software, machinery, and hardware sectors. So, I believe it’s not just about electricity, but also digital technology, hardware, and manufacturing, which are gaining importance in what we’ve discussed,” Chávez explained. The business leader affirmed that El Salvador can offer Turkish companies raw materials and skilled and unskilled labor.

Turkey as a Key Market for Salvadoran Exports

When asked what draws Salvadoran businesses to do business with Turkey, the vice president of Camarasal said, “For Salvadoran companies that want to export to Turkey, a new horizon opens up. Salvadoran companies have an export focus primarily directed at the U.S. and some European countries. Turkey is a market we don’t engage with much, but from what we’ve heard about Turkey, I think Salvadoran entrepreneurs can see an interesting export window for their products and services to that country.”

Chávez believed that Salvadoran companies could leverage the knowledge of Turkish businesses and then export to countries such as the U.S., Latin America, or Turkey.

Optimistic Outlook on Business Opportunities in El Salvador

For his part, Jorge Arriaza, president of ASI, said that the approach with Turkish companies seemed optimistic, following the groundwork laid by President Nayib Bukele’s visit to Turkey in 2022. El Salvador opened its embassy in Ankara in 2020, but the Turkish government only opened it two years later. Arriaza highlighted the Turkish investment in ports through Yilport and other agreements in the energy sector.

ASI members met with the delegation this Thursday, and Coexport executives had a separate meeting. “We will meet with them to talk, and more than anything, to get to know each other, make contacts, and explore business opportunities in El Salvador,” said Arriaza.

A Starting Point for Growing Trade Relations

When asked what sector of Turkey interests them, the businessman responded that they would assess the investors’ expectations, and then ASI would provide theirs. “The meeting is a starting point for growing a commercial relationship with Turkey,” he added. He also pointed out that the business association focuses on the 24 industrial sectors where it seeks business opportunities in El Salvador. “Our main concept is to integrate into productive and value chains,” he concluded.

Aguada Park in Uruguay has received a significant boost by announcing a multi-million-dollar investment to expand its office infrastructure. The project consists of constructing the Aguada Park Tower 4 building, which will cover approximately 10,000 square meters and introduce new urbanized areas for business and recreational purposes. This investment will enhance the capabilities of the free trade zone and further solidify its position as a leading business hub in Montevideo.

20-Year Extension Granted for Free Trade Zone Operations

The free trade zone Aguada Park in Uruguay has secured authorization from the Executive Branch to embark on this ambitious expansion, which entails a minimum investment of US$ 10 million. According to a resolution issued by the Ministry of Economy and Finance (MEF), “justified by the need to amortize the new investment to be made,” a 20-year extension has been granted for the operation of the free trade zone. This extension ensures long-term stability for businesses operating within Aguada Park in Uruguay and encourages further investment in its infrastructure and services.

Modernization and Infrastructure Enhancements

Aguada Park co-founder Roberto Yannuzzi emphasized the importance of this project, stating that the upcoming Tower 4 will incorporate various enhancements. In addition to modern office spaces, the development will feature a newly urbanized area with green recreational spaces, providing a more comfortable and dynamic environment for employees and visitors. The expansion will also include covered parking areas, dining facilities, new access points, escalators, and moving walkways, interconnecting various spaces within the zone. These additional amenities will contribute another 4,000 square meters, making the free trade zone more accessible and efficient.

Compliance and Approval Process for Expansion

Within the next six months, Aguada Park must submit an executive engineering and architectural project, a detailed descriptive and construction report, and either an approved construction permit or authorization for the early commencement of works granted by the Montevideo Municipality. This rigorous approval process ensures that all aspects of the development align with municipal regulations and urban planning standards.

Improved Connectivity and Business Integration

“The requested surface expansion is part of a comprehensive project that spatially and functionally connects the new site with the already authorized one through an aerial link that will unify the flow of people entering the free trade zone,” the MEF resolution detailed. This integration will streamline movement within Aguada Park, facilitating better connectivity between its different areas and improving accessibility for businesses operating within the zone.

Government Support and Economic Impact

According to the MEF, the project “contributes to the objectives of the free trade zone regime” and has already received a feasibility report from the capital’s municipal government. The National Directorate of Free Trade Zones has also indicated that the economic assessment of Aguada Park’s ongoing activities is “highly positive.” This endorsement highlights the significant role that Aguada Park plays in Uruguay’s financial landscape, fostering job creation and attracting international business ventures.

Strategic Location and High-Quality Office Space

In August of last year, the free trade zone requested an expansion of its prior environmental authorization to construct Aguada Park Tower 4, which will stand 50.4 meters tall in Montevideo. In that request, submitted to the Ministry of Environment, it was stated that the development’s purpose is to provide a new building adjacent to the existing one, “offering high-quality office spaces,” which would help “attract investors to develop remote work ventures linked to the international market, promoting high-quality employment.” This strategic initiative aligns with Uruguay’s broader goals of positioning itself as a competitive business destination in the region.

Construction Timeline and Capacity Expansion

The planned new construction in the La Aguada neighborhood will be located on the block adjacent to the current free trade zone on its southern side, with access from Colombia Street. The choice of location ensures that the expansion remains well-integrated with the existing infrastructure, facilitating seamless access for businesses and employees. Once fully operational, increasing the office space within Aguada Park aims to accommodate approximately 1,400 professionals, strengthening the zone’s capacity to support high-value business activities.

The construction of the new tower is expected to take approximately two years. Once completed, the office space expansion will represent a 37% increase, allowing Aguada Park to host more businesses and employees. The projected timeline for full occupancy is an additional three years, reflecting the anticipated demand for high-quality office space in Montevideo’s growing business ecosystem.

Aguada Park’s Role in Uruguay’s Economic Development

Aguada Park in Uruguay has established itself as a prominent free trade zone that attracts companies specializing in services, logistics, and technology. Its modern facilities, tax incentives, and strategic location have made it a preferred destination for multinational corporations and small enterprises looking to expand their operations in Latin America. With the latest investment and infrastructure improvements, Aguada Park is poised to enhance its appeal further, providing businesses with a state-of-the-art environment in which to thrive.

A Key Player in Uruguay’s Business Future

As Uruguay continues to promote economic growth and international investment, Aguada Park is crucial in supporting the country’s business development initiatives. The newly announced investment underscores the confidence in Aguada Park’s ability to serve as a hub for innovation and commerce. With a long-term operational extension, state-of-the-art infrastructure, and a strong commitment to sustainability and business growth, Aguada Park in Uruguay remains a key player in the country’s economic future.

Foreign Direct Investment in Chile Surpasses Historical Averages

According to Marca Chile, between January and September 2024, foreign direct investment (FDI) accumulated to US $11.76 billion, surpassing the average of the last 20 years by 5%. This sustained growth highlights the country’s strong economic fundamentals and attractiveness to global investors. Chile is a key investment destination due to its political stability, transparent regulatory environment, and strategic access to Latin American markets. The current market demands are increasingly stringent, pushing companies to evolve and adapt to meet customer needs. As a result, many brands are choosing to enter the Chilean market to strengthen their operations, a trend that has already become evident.

International Companies Drive Growth and Investment

In addition to Marca Chile’s report, a study by the Corporación de Bienes de Capital (CBC) projects that by 2028, 77% of private investment in Chile will be attributed to international companies. This reflects Chile’s growing attractiveness for foreign businesses, thanks to its stable economy, business-friendly regulations, and strategic geographic position as a gateway to Latin America. The influx of foreign capital and expertise fosters economic expansion and job creation, solidifying Chile’s position as a premier location for multinational corporations.

Chile is a key investment destination for companies looking to establish a foothold in South America. Its well-developed infrastructure, access to global markets, and consistent economic policies make it an ideal environment for business growth. By 2028, foreign firms will be responsible for most private investments in the country, demonstrating the confidence that global enterprises have in Chile’s long-term potential.

The “Glocal” Strategy: A Key Approach for Market Success

Understanding that combining global innovation and local adaptation can drive growth, many companies are implementing a “glocal” strategy that blends international expertise with local market needs. This method has proven fundamental in helping businesses connect with consumers across different markets and cultures.

One example of this strategy in action is Tork®, a Swedish brand and global leader in professional hygiene solutions, which is part of Essity. The company has successfully adopted this philosophy in Chile, demonstrating how a balance between global innovation and local adaptation can drive the growth of large corporations. By tailoring its products and services to meet the unique demands of the Chilean market, Tork® has strengthened its customer relationships and increased its competitive edge.

Tork® Expands Its Presence in Chile and Latin America

“We are a global leader and are present in over 130 countries, including Chile. This reflects our company’s commitment to the local market’s development. We are constantly looking for new opportunities, and establishing a strong presence in a key market like Chile is one of our priorities,” said Francisco Salamé, Commercial Director for the Southern Cone at Tork®.

Committed to providing optimal solutions to improve individual and collective health, the brand considers Latin America a key market, accounting for 8% of its total sales. Chile is a key investment destination for multinational corporations looking to expand in the region, and companies like Tork® recognize the country’s significant potential. In line with its goal of growing in emerging markets like Chile, the company is working to deepen its understanding of local customers and strategic geographic areas.

As part of this effort, Tork® collaborates closely with local distributors, representing approximately 70% of the company’s internal business model sales. Additionally, more than 80% of these distributors sell products through digital channels, reflecting the brand’s commitment to modernizing its supply chain and ensuring efficiency in product distribution.

Sustainable Innovation: Addressing Chile’s Water Scarcity

Furthermore, Tork® has invested in technology to address Chile’s growing water scarcity problem. The company has begun implementing a water filtration system to improve water quality and increase reuse, reinforcing its commitment to environmental sustainability. With Chile prioritizing sustainable economic growth, companies investing in green initiatives increasingly align with national policies and consumer expectations. This commitment to sustainability further strengthens the argument that Chile is a key investment destination for environmentally conscious corporations.

Regional Expansion: Strengthening Latin American Markets

These localized efforts are also being replicated in other Latin American countries where the brand has a presence. For example, in Argentina, Tork® recently installed a new production machine to meet local demand for high-capacity paper towels and hygiene products. This marks the first time Tork® products will be manufactured in Argentina, representing a significant milestone in the company’s regional expansion.

“We seek to expand our logistical presence to solidify our position in the most relevant markets, which is a significant step in that direction. Expanding our infrastructure allows us to make a greater impact, bringing us closer to our customers and improving service quality. For us, the customer is always the priority, and being close to them is essential to fulfilling that commitment,” Salamé emphasized.

With its robust economic framework and emphasis on sustainable development, Chile is a key investment destination for foreign companies aiming to establish long-term operations in Latin America. Its proactive business environment, strong legal system, and commitment to digital transformation make it an attractive choice for international investors.

Conclusion: Chile’s Strategic Role in Global Investment

As Chile continues solidifying its position as a top destination for foreign investment, businesses across various industries recognize the country’s potential. The increasing presence of international brands underscores Chile’s economic stability, market opportunities, and strategic importance in Latin America.

By leveraging glocal strategies, companies can thrive in this competitive and rapidly evolving business environment. Chile’s commitment to fostering a business-friendly climate and ongoing investments in infrastructure and sustainability will further reinforce its appeal as a premier hub for global enterprises. Given these factors, it is evident that Chile is a key investment destination, offering unparalleled advantages to companies seeking growth, innovation, and long-term success.

Uncertainty follows the United States’ publication of tariffs on steel and aluminum, which target automobiles, chips, and pharmaceuticals. The crisis triggered by the possibility that the United States will impose a 25% tariff on exports has caused investments worth 60 billion dollars to be paused in Mexico, revealed Francisco Cervantes, president of the Business Coordinating Council, during the presentation of the Hecho en México program.

Although he explained that “there is a lot of interest” in making trade agreements, he acknowledged that we are in difficult times due to the threat of US tariffs on Mexico on various products after the US government published executive orders on Monday to impose a 25% increase in steel and aluminum tariffs starting March 12 on Mexico, Argentina, Australia, Brazil, Canada, South Korea, the European Union, Japan, the United Kingdom, and Ukraine, among others, because these pose a risk to national security.

This will initially have consequences for Mexico’s metalworking and automotive industries, which depend heavily on these metals. Trump accuses Mexico of using primary aluminum from China and Russia to produce finished goods made from this material and receiving Chinese investments in the industry to manufacture goods that will be exported to the US. He also claimed that Mexican steel exports have increased “significantly.”

Francisco Cervantes considered that the crisis would be brief. Although there will be some “nice tugging,” Mexico will get through it, just as it did during Trump’s first term when he threatened to end the North American Free Trade Agreement, which resulted in a new agreement: the USMCA (T-MEC).

However, Miguel Ángel Landeros, president of the Mexican Council of Foreign Trade for the West, emphasized that the tariff increases affect both businesses and consumers in Mexico and the United States. “This is very bad… and it will particularly affect the automotive sector in Jalisco. The state’s second-largest export sector is automotive, with a significant hub in auto parts. We have a Honda assembly plant and important auto parts companies.”

The US president also anticipates that the new tariff on automobiles will be imposed starting April 2, which will be around 25%. He warned that the increases will equal or higher for chips, semiconductors, and pharmaceuticals: “And they will rise significantly throughout the year” against all countries, focusing on the European Union. “They don’t take our cars, they don’t take our agricultural products, they don’t take almost anything. We’re going to have to fix this, and we will.”

Sergio Oliveira, an expert in the automotive sector, noted that auto parts prices will impact consumers in general. He explained that a car assembled in Mexico contains many U.S.-made parts, and the same happens with vehicles manufactured in the US “All of that would be subject to tariffs so that prices would rise here and in the U.S.,” he warned. This would make things easier for the Chinese.

The Mexican Employers’ Confederation (Coparmex) rejected the unilateral imposition of tariffs, stating that they violated the USMCA and threatened regional integration. “It seriously affects the steel industry and the entire production chain linked to these essential inputs.”

Juárez Has Already Lost 45,000 Jobs

The tariffs announced by the United States on Mexican exports, in addition to pausing investments worth billions of dollars, have already caused the loss of at least 45,000 jobs in the epicenter of Mexico’s maquiladora industry: Ciudad Juárez. The Border Business Bloc reported that “Ciudad Juárez has already lost more than 45,000 jobs in recent months, and this causes other types of problems. We will also see, I mean, we don’t want to think about it, but there could be an inflationary problem,” warned representative Thor Salayandía.

In Ciudad Juárez, one of Mexico’s main export manufacturing centers, business leaders warn that the situation is critical due to a significant reduction in foreign investment and the possible closure of plants if the US tariffs on Mexico are implemented.

“No one wins, neither the United States nor Mexico, when you look at it from an economic perspective, from the viewpoint of the border, where we depend heavily on the maquiladora industry. Sixty percent of formal employment is involved in the maquiladora industry,” stated Salayandía.

Promoting National Consumption

Around 200 people, including singers such as Manuel Mijares, artists, athletes, creators, and businesspeople, will form the Hecho en México Promotional Council. This council will promote products made in Mexico nationally and internationally.

During the presentation, Economy Secretary Marcelo Ebrard explained that this brand would be promoted and that companies manufacturing products in the country could use the label.

The Hecho en México brand is for products manufactured, made, or assembled with entirely national inputs and/or whose manufacturing occurs in Mexico, regardless of the origin of the inputs.

If the US tariffs on Mexico were enacted, Mexico’s competitiveness in the manufacturing industry would be affected.

As the deadline set by Trump approaches, business owners and workers are urging the Mexican government to intervene to prevent an economic blow that they believe could have devastating consequences for the border region.

Conclusion

The potential implementation of US tariffs on Mexico has caused significant uncertainty, particularly regarding the steel, aluminum, automotive, chips, and pharmaceutical industries. These tariffs, which include a 25% increase on exports starting March 12, could impact investments worth $60 billion and already have led to a loss of 45,000 jobs in Ciudad Juárez, a key manufacturing hub. Mexican business leaders are concerned that the tariffs will disrupt the economy, especially in the automotive sector, which heavily depends on US-made parts. Although some leaders remain optimistic, drawing comparisons to previous trade challenges, the tariffs threaten regional integration and could increase consumer prices in Mexico and the US. The Mexican government has been urged to intervene to mitigate potential economic damage, especially in border regions. The Hecho en México campaign has been introduced to promote national products, but if the tariffs are enacted, Mexico’s competitiveness in manufacturing could be severely impacted.