South America Must Embrace Global Trade
Brazil, Argentina & Colombia Least Dependant on International Trade
Jan 14, 2009
This analysis examines the total value of exports and imports for each of the 12 South American economies. Those amounts are then divided by the country’s Gross Domestic Product (GDP) to calculate a percentage that shows the share of a nation’s production that global trade generates.
Based on estimated 2007 statistics from the CIA World Factbook, overall global trade from all South American countries was about US$777 million in 2007. This represents 21% of that continent’s total GDP which amounted to some $3.7 trillion. In total, North American economies achieved a global trade percentage of 27.1%.
South American Countries Most Open to Global Trade
While the following 6 nations have the highest global trade percentages for 2007, they represent only 17.2% of continental GDP.
- Suriname ... 69.9% driven by global trade (US$2.7 billion divided by GDP of $3.8 billion)
- Guyana ... 59.9% driven by global trade ($1.7 billion divided by $2.8 billion)
- Chile ... 48% driven by global trade ($111.6 billion divided by $232.8 billion)
- Paraguay ... 43.3% driven by global trade ($11.6 billion divided by $26.7 billion)
- Venezuela ... 34.3% driven by global trade ($114.6 billion divided by $334.3 billion)
- Uruguay ... 28.3% driven by global trade ($10.6 billion divided by $37.5 billion).
Of the South American economies most dependent on international trade, Chile and Venezuela are the two largest.
South American Countries Least Developed in Global Trade
Led by Brazil (population 196 million) and Argentina (41 million), the 6 countries below represent 82.8% of South American GDP. Yet only 63.9% of global trade originates from these countries, which are sorted by global trade percentage from lowest to highest.
- Brazil ... 15.2% driven by global trade (US$281.2 billion divided by GDP of $1.849 trillion)
- Argentina ... 18.7% driven by global trade ($98.3 billion divided by $526.4 billion)
- Colombia ... 18.8% driven by global trade ($61.8 billion divided by $327.7 billion)
- Bolivia ... 19.5% driven by global trade ($7.7 billion divided by $39.8 billion)
- Peru ... 21.7% driven by global trade ($47.6 billion divided by $219.6 billion)
- Ecuador ... 27.5% driven by global trade ($27.1 billion divided by $98.7 billion).
South American Global Trade by Country
Below are statistics for the overall $777 billion global trade by South American nation in 2007.
- Brazil ... US$281.2 billion (36.2% of total South American global trade)
- Venezuela ... $114.6 billion (14.8%)
- Chile ... $111.6 billion (14.4%)
- Argentina ... $98.3 billion (12.7%)
- Colombia ... $61.8 billion (8%)
- Peru ... $47.6 billion (6.1%)
- Ecuador ... $27.1 billion (3.5%)
- Paraguay ... $11.6 billion (1.5%)
- Uruguay ... $10.6 billion (1.4%)
- Bolivia ... $7.7 billion (1%)
- Suriname ... $2.7 billion (0.3%)
- Guyana ... $1.7 billion (0.2%).
South American Global Exports
Below is a summary of the estimated $443.2 billion in total South American exports in 2007 by country.
- Brazil ... US$160.6 billion (36.2% of total South American exports)
- Venezuela ... $69.2 billion (15.6%)
- Chile ... $67.6 billion (15.3%)
- Argentina ... $55.8 billion (12.6%)
- Colombia ... $30.6 billion (6.9%)
- Peru ... $28 billion (6.3%)
- Ecuador ... $14.4 billion (3.2%)
- Paraguay ... $5.5 billion (1.2%)
- Uruguay ... $5.1 billion (1.1%)
- Bolivia ... $4.5 billion (1%)
- Suriname ... $1.4 billion (0.3%)
- Guyana ... $0.7 billion (0.2%).
South American Global Imports
Total South American imports were $333.3 billion in 2007.
- Brazil ... US$120.6 billion (36.2% of total South American imports)
- Venezuela ... $45.5 billion (13.6%)
- Chile ... $44 billion (13.2%)
- Argentina ... $42.5 billion (12.8%)
- Colombia ... $31.2 billion (9.4%)
- Peru ... $19.6 billion (5.9%)
- Ecuador ... $12.8 billion (3.8%)
- Paraguay ... $6.1 billion (1.8%)
- Uruguay ... $5.6 billion (1.7%)
- Bolivia ... $3.2 billion (1%)
- Suriname ... $1.3 billion (0.4%)
- Guyana ... $1 billion (0.3%).
South America Needs to Develop More Global Deals
Some analysts speculate that the largest South American countries are more focused on developing local and regional trade because they lack the infrastructure and negotiation experience to support more robust global trade.
On the supply side, South America's vast raw resources ranging from metals to agricultural products bode for a bright future. However, when local consumer demand slows, South American businesses need to develop more trading alliances with economies in overseas markets.
Sources for this Article
This article presents independent calculations and insights based on estimated 2007 data drawn from the CIA World Factbook and Carbaugh’s International Economics, 12th edition.
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