Latin America

Japan & Korea Supply Chain

South Korea, Brazil Ink Deal to Restart Mercosur FTA Talks

South Korean President Lee Jae Myung and Brazilian President Luiz Inacio Lula da Silva agreed on 29 July 2026 to restart free-trade negotiations with Mercosur — the South American bloc of Argentina, Brazil, Paraguay, Uruguay, and Bolivia. A joint working group will prepare a formal declaration for the Mercosur summit in December 2026. Talks, launched in 2018, stalled in late 2021 amid manufacturing-sector concerns. Analysts say Seoul must back diplomacy with real investment and technology transfer. Mercosur’s $3.5 trillion GDP and 270 million consumers make it a high-stakes opportunity for Korean exporters and supply chain planners.

2026-07-30

Latin America Supply Chain

Shein posts $99M Q1 loss amid de minimis repeal

Shein reported a $99 million net loss for Q1 2026 — a sharp reversal from $395 million in profit a year earlier — driven primarily by the permanent repeal of the U.S. de minimis duty exemption in January 2025. The company cited added costs from U.S.-China tariff uncertainty and spillover effects from the U.S.-Israel war on Iran, which disrupted air cargo routes and cooled demand. Shein is raising U.S. prices and advancing its Hong Kong IPO plans while expanding nearshore manufacturing in Mexico and Vietnam. CBP has collected over $1 billion in new duties since the policy change.

2026-07-30

Latin America Supply Chain

Thailand, Argentina emerge as top next-wave manufacturing hubs

Thailand and Argentina have emerged as top-tier next-wave manufacturing hubs, per Verisk Maplecroft’s July 16, 2026 assessment. Thailand leads Southeast Asia in auto and AI-driven electronics manufacturing, while Argentina leverages U.S. and EU trade deals to supply critical minerals and industrial exports. Chile serves as a lower-risk Pacific alternative. The shift reflects a strategic pivot beyond labor cost toward regulatory stability, market openness, and access to strategic industries—factors deteriorating in Vietnam and Malaysia since 2024. Companies acting early to build supplier relationships and test entry strategies gain decisive advantage amid rising geopolitical risk.

2026-07-30

AI & Automation

EU-LatAm trade growth remains one-way: 10.6% drop in Jan

EU-South America container volumes fell in three of the first five months of 2026, including a 10.6% year-on-year drop in January, despite the EU-Mercosur trade deal entering force. In contrast, LatAm-to-EU trade grew 9.2%, 4.8%, 12.7%, 0.1%, and 10.8% across those same months, building on 2025’s 8.7% annual growth. Forwarders report rising quotation requests from European shippers targeting Latin America, especially in automotive, machinery, and pharma sectors. Meanwhile, South American exporters cite strong demand in Europe for coffee, fruit, refrigerated cargo, foodstuffs, pulp, and leather — though capacity constraints and the EU’s May 2026 beef export ban pose near-term headwinds.

2026-07-29

Latin America Supply Chain

Puratos scales US wheat sourcing: 30% to regenerative agriculture by 2030 target

Puratos has enrolled approximately 30% of its U.S. wheat flour volumes in mass-balance regenerative agriculture programmes, advancing toward its 2030 target of 50% regenerative sourcing. The initiative, led by Senior Procurement Manager Luther Hardin and Product Director Michael Gleason, emphasizes practical, scalable implementation through crop rotation, reduced tillage, and cover cropping. Industry data shows 70% of global firms embed sustainability in procurement, yet 85% struggle to identify sustainable suppliers. Puratos builds on programmes launched in 2022 and uses scientific expertise to drive biodiversity, land restoration, and emissions reduction.

2026-07-29

Latin America Supply Chain

US backs Madagascar rare earths project to counter China’s 85% supply share

The United States is supporting a rare earth elements project in Madagascar to reduce dependence on China, which controls 85% of global rare earth processing. Backed by the U.S. Department of State and the Minerals Security Partnership, the initiative targets three priority geological zones in southern Madagascar and aligns with broader efforts including a $1.2 billion U.S.-Rwanda separation facility deal. Feasibility studies began in Q2 2024, with regulatory approvals anticipated by late 2025. The MSP — comprising 14 nations — has mobilized $3.2 billion across 20+ critical mineral projects since June 2022.

2026-07-29

Southeast Asia Supply Chain

Brazil Supply Chain AI Adoption Stalls at 14% for Advanced Use

A 2026 Live University/Inbrasc study of 328 Brazilian companies finds only 14% use Agentic AI for predictive supply chain applications — despite 88% deploying generative AI for basic tasks. Investment data shows R$ 1.8M average annual tech spend, with R$ 517K allocated to AI. Prestex achieved 30% automated query resolution and 10-minute urgent tracking response times using autonomous agents. Workforce capability remains the top barrier (54%), while leadership engagement drives success in 49% of cases.

2026-07-29

Latin America Supply Chain

NAM urges USMCA upgrades as 15 of 18 U.S. manufacturing sectors boost exports

The National Association of Manufacturers (NAM) is urging policymakers to strengthen the United States–Mexico–Canada Agreement (USMCA) during its May 2026 six-year review. According to a NAM report released May 13, 2026, 15 of 18 U.S. manufacturing sectors increased exports to Canada and Mexico since USMCA took effect in 2018. NAM proposes updates to rules of origin for EV batteries, customs digitization, AI-enabled trade tools, and labor enforcement. USMCA’s auto regional value content requirement stands at 75%, up from NAFTA’s 62.5%. U.S. automotive parts exports to Mexico rose 18.3% since 2018.

2026-07-28

Latin America Supply Chain

UK Exporters Face New US Customs Rules Amid 10.3% Drop

UK exporters face urgent logistical recalibration following the US suspension of the $800 de minimis exemption on 24 July 2026. New Entry Type 13 rules require licensed customs brokers, enforce all duties—including the 10% Section 122 levy—and phase out simplified IMDW processing by 24 October 2026. Concurrently, UK goods exports to the US fell 10.3% (£6.8bn / $9.06bn) over the past year. David Taylor of Mark 3 International warns of rising costs, service degradation, and carrier unpreparedness—urging exporters to engage specialized compliance partners.

2026-07-28

Latin America Supply Chain

China imports 1.26M tons U.S. soy; Brazil holds 90% share

China imported 13.554 million tons of soybeans in June 2026 — a record monthly volume — with 12.075 million tons coming from Brazil (nearly 90%). U.S. purchases rose to 1.26 million tons, reflecting early steps toward a bilateral commitment of 25 million tons annually through 2028. Yet analysts stress caution: actual shipments lag announcements, and U.S. output — now projected at 121.8 million tons — remains vulnerable to July–August weather. Brazil’s cost advantage (US$1.20/bushel lower production cost) and pricing edge (US$0.50–US$0.60/bushel discount) secure its leadership despite geopolitical shifts.

2026-07-27

Digital Platforms

GOL inks ULD management deal with Jettainer for 700 daily flights

Brazilian airline GOL Linhas Aéreas has partnered with Jettainer to manage its unit load device (ULD) fleet digitally, covering 700 daily flights and 30 million annual passengers. The deal includes JettainerNG cloud platform integration and supports GOL’s upcoming intercontinental operations using five Airbus A330-900 aircraft. Jettainer now serves all Abra Group airlines — Avianca, GOL, and Wamos Air — aiming to streamline ULD operations and cut costs. Executives from both companies cited enhanced cargo safety, asset utilization, and regional scalability as key benefits.

2026-07-27

Latin America Supply Chain

Brazilian exports to Mexico drop 42.5% amid new tariffs

Brazilian industrial exports hit by Mexico’s January 2026 tariff hike fell 42.5% in H1 2026 versus the prior three-year average—equivalent to US$91.5 million. The policy affects 171 products, including pipeline-grade steel pipes whose exports collapsed 100% in Q1 2026. With US$665 million in exports at risk and 90.3% of 474 identified trade opportunities subject to tariffs, CNI urges tariff exemption and fast-tracked free trade talks. A potential agreement could lift joint GDP by US$13.8 billion and draw US$8 billion in investment.

2026-07-26