Guest blog post by Deputy Executive Director, SelectUSA Aaron Brickman
Not only is South America the birthplace of soccer greats and the location of natural wonders, it is also an important and rapidly growing source of foreign direct investment (FDI) to the United States. According to the U.S. Commerce Department’s Bureau of Economic Analysis (BEA), more than 85,000 men and women go to work each day at South American companies operating in the United States.
The SelectUSA South America Road Show this week connected U.S. economic development organizations (EDOs) directly with inversores and investidores in Santiago, Chile; Sao Paulo, Brazil; and Bogota, Colombia to build opportunities for even more South American companies to succeed in U.S. cities and regions.
Why did SelectUSA’s first South American Road Show focus on Chile, Brazil, and Colombia?
- These three countries accounted for nearly a quarter of inward investment from Latin American sources in 2013.
- Brazil is the largest source of investment from South America, with a total stock of nearly $15 billion in 2013. Brazilian companies such as JBS, Embraer, Braskem, and Chilli Beans have made significant investments in the United States over the past several years. The annual growth rate of Brazilian investment averaged 19.6 percent between 2009 and 2013, making Brazil the ninth-fastest global source of investment to our country. There is robust interest from a diversity of sectors: 325 Brazilian firms took part in our seminar and one-on-one meetings with EDOs.
- As of 2013, the stock of FDI from Chile into the United States stood at $983 million. Investment from Chile, with which we have a Free Trade Agreement (FTA), has been growing at a compound annual growth rate of 11.9 percent since 2009. More than 130 Chilean firms registered for the Road Show, and we were joined by Arauco and Elecmetal – two well-known Chilean companies who shared their experience investing in the United States.
- Colombia, another FTA partner, was the source of over $2 billion of FDI stock in the United States as of 2013. A recent example includes Fehr Foods, a subsidiary of Grupo Nutresa, which announced earlier this year that it will invest an additional $32 million and create 105 jobs in its U.S plant. Many more Colombian firms are looking to find success in the United States, as evidenced by the 190 participants in the Road Show in Bogota. FDI from Colombia to the United States from 2009 to 2014 grew at a compound annual growth rate of 14.6 percent.
The 600-plus South American firms from Chile, Brazil and Colombia participated in day-long seminars in each location that provided useful tools and resources as they consider opportunities to invest. The U.S. EDOs exhibited at each Road Show stop and met one-on-one with dozens of potential investors. Road Shows are a valuable opportunity to showcase regional and local assistance and incentives, and SelectUSA offers several around the world each year.
SelectUSA hopes to welcome many of the firms I met during the Road Show, along with others from South America, to the SelectUSA Investment Summit in March 2015. The Summit will provide another excellent platform for EDOs and international investors to get to know one another.
I was very excited to see the enthusiasm of the Road Show participants on this trip, and I look forward to watching many new partnerships and successes between South America and the United States!