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SPACs and Latin America

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Acquisitions, Archives, Global Trade Daily

SPACs and Latin America

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Overview

A special purpose acquisition company (“SPAC”) is a New York Stock Exchange (“NYSE”) or NASDAQ-listed shell company through which a team of sponsors raises capital in an initial public offering (“IPO”) for an unspecified future acquisition of an operating company, which in turn can quickly become NYSE or NASDAQ-listed upon merging with the SPAC. While SPACs have existed in some form for decades, their popularity has increased dramatically over the last two years. The over US$83 billion in gross proceeds raised in 248 SPAC IPOs in 2020 not only shattered the previous record of US$13.6 billion raised in 59 IPOs in 2019, but exceeds proceeds raised in the entire previous decade combined. The trend has continued to accelerate in 2021, with over 170 SPACs launched in the first two months of this year for over US$53 billion in gross proceeds, and SPACs making up over 70% of all US IPO activity.

The SPAC boom has been a major driver of the current revival in the US IPO market and helped reverse a two-decade cultural trend in Silicon Valley and the rest of the start-up world of staying private for a longer period of time. A merger with a SPAC has become an increasingly popular path to a public listing for start-ups in hot sectors such as electric vehicles and biotechnology, as well as portfolio company exit strategy for major private equity firms. Major private equity and venture capital firms, along with hedge funds, have also been prolific SPAC sponsors. SPACs have also increasingly been a vehicle for emerging market opportunities, both on the sponsor side by emerging market management teams and investors, and on the target side for emerging market companies looking for an efficient path to a US listing.

The Target

For a potential target company looking to gain access to US public markets, acquisition by a SPAC offers several advantages over a traditional IPO, including:

Speed to market. A traditional IPO will likely take months longer than being acquired by a SPAC given the broad disclosure requirements of a registration statement on Form S-1 (for a US company) or F-1 (for a non-US company) and accompanying US Securities and Exchange Commission (“SEC”) comment process, whereas a SPAC target’s principal public disclosure obligations will come in the proxy statement on Form S-4 (for a US company) or F-4 (for a non-US company), which has considerably less onerous requirements. On the other hand, the target company will need to be prepared to be an SEC-registered and NYSE or NASDAQ-listed company quickly, including appropriate financial statements, corporate governance and capacity to meet its future disclosure obligations.  Non-US companies, or Foreign Private Issuers, will in any case enjoy a significantly lower regulatory burden than a US company, including significantly less required disclosure of executive compensation, exemption from the proxy requirements of US public companies and the ability to generally (with a couple of exceptions) follow home country governance rules instead of those imposed on US companies by the SEC, NASDAQ and NYSE.

Pricing certainty. The target company’s valuation will be negotiated in a private, M&A-like process with the SPAC sponsors and, as discussed below, PIPE investors, as opposed to the underwriter-driven and highly volatile traditional IPO pricing that will depend on real-time market conditions and demand from public investors.

Release of projections. A target company can include forward-looking projections in its Form S-4/F-4 disclosure, unlike in Form S-1/F-1, giving it more control over its story as it introduces itself to US public market investors. A company will also generally enjoy more flexibility to engage in more detailed discussions with prospective acquirers and investors ahead of any transaction, compared to the restrictions on communications that come with a traditional pre-IPO process.

Control over corporate governance. A traditional IPO is a long, collaborative process with underwriters who will tend to look at all issues, including the building out and disclosure of the company’s post-IPO corporate governance, with a focus on maximizing public investor demand at the initial sale. Therefore, where founders seek to maintain a level of control to the extent permitted under SEC, NYSE or NASDAQ rules (and for non-US companies, governance rules exemptions by all three of these are broad enough that quite a lot is permitted), especially in the technology sector, they are likely to encounter more pushback from underwriters than from M&A counterparties with whom they are directly negotiating valuation. Of course, each transaction is different and the level of founder control a SPAC acquirer is prepared to accept will vary.

The SPAC IPO

While the SEC registration process for a SPAC IPO largely follows that of any IPO, with the filing of a registration statement on Form S-1/F-1 and SEC comments, in practice the lack of operating history and financial statements makes it a much more streamlined process. With no operating business to describe, disclosure will center on the experience of the sponsor team, the type of company that will be targeted for acquisition and the terms to the public shareholders of the SPAC.

Typical SPAC terms include:

Founder shares. Sponsors acquire initial equity in the SPAC for nominal value and purchase warrants to help fund costs, typically with built-in anti-dilution protections designed to ensure that such shares convert into at least 20% of the post-IPO and pre-acquisition company. This leads to the sponsors effectively acquiring their stake in the post-acquisition public operating company at a discount and potentially very attractive returns.

Units. Public shareholders are offered units typically consisting of one share of common stock and a portion of a warrant, which can only be exercised after the acquisition. Units, common stock and warrants are all publicly traded, and investors can unbundle their units to trade stock and warrants separately.

Searching period. A SPAC typically has up to two years after its IPO to submit a proposed transaction to a shareholder vote, or be required to liquidate and return the public shareholders’ investment plus accrued interest.

Shareholder redemption. When the sponsors propose an acquisition, or if they seek an extension of the searching period, public shareholders have the option to instead redeem their shares for cash at the IPO price plus accrued interest, with the right to keep their warrants and thereby maintain some upside exposure.

Trust Account. Capital raised in the SPAC IPO is placed in an interest-earning trust account to be used to fund the future acquisition, buy out any redeeming shareholders or liquidate and pay out the public shareholders if no acquisition occurs.

Acquisition by a SPAC

To meet the typical two year deadline to submit a proposed acquisition for shareholder approval, sponsors need to promptly begin the search process to allow adequate time to evaluate potential transactions, initiate and complete negotiations with targets, bring in PIPE investors, and begin and complete the S-4/F-4 drafting and filing process, including SEC review and comment.

Private-investment-in-public-equity (“PIPE”) financings by institutional investors in a SPAC prior to, or concurrently with, the announcement of a proposed acquisition have by now become standard. PIPE financings bring several benefits ahead of the acquisition, including reputable anchor investors to effectively endorse the new public company, price discovery as the valuation of the new public company is negotiated with the PIPE investors, and additional cash proceeds both for the acquisition and new public company operations, including as a backstop against uncertain levels of public shareholder redemptions.

Following the announcement of an acquisition, the sponsors will solicit the SPAC’s public shareholders’ approval of the transaction in a proxy statement filed on Form S-4 or F-4. As discussed above, this will be the principal disclosure document describing the business of the target company, including historical and pro forma post-merger financial data, as well as management’s discussion and analysis of its financial condition and results of operations. The S-4/F-4 will describe the terms of the proposed merger and transaction documents, the latter of which will be provided as exhibits. The document will also describe the process leading up to the transaction, including a history of the search process, insight into the SPAC’s management and board of directors’ analysis of potential transactions and decision-making process, and the role of outside advisors.  Once the acquisition is approved, under most structures the target is merged with the SPAC and its shareholders receive shares of the listed entity (in some structures the surviving public company is a new entity, but the end result is effectively the same for public shareholders).

Emerging Markets, Latin America and SPACs

Emerging market companies are increasingly participating in the SPAC wave. Most prominently, Grab Holdings Inc., a leading Southeast Asia technology company, recently agreed to be acquired by NASDAQ-listed Altimeter Growth Corp. in the largest SPAC acquisition in history. Other recent prominent transactions include, on the target side, India’s ReNew Power Private Limited’s proposed acquisition by, and NASDAQ listing through, RMG Acquisition Corporation II, and on the sponsor side, Chinese private equity firm Primavera Capital Group’s launch of Primavera Capital Group Acquisition Corporation, a SPAC to be listed on the NYSE.

Now, Latin American companies, especially in the technology sector, are also becoming the targets of SPACs. Several investment firms, including Softbank, LIV Capital, Rocket Internet and DILA Capital have recently formed SPACs with the intention of acquiring Latin American companies.

Brazilian businesses, in particular, have had a strong presence in the recent SPAC boom as both sponsor and target. SPACs sponsored by prominent Brazilian business figures that have gone public in the last two years include: NASDAQ-listed Patria Acquisition Corp., sponsored by Patria Investments Limited; NYSE-listed HPX Corp., led by 3G Capital and Vinci Partners veterans Bernardo Hees, Carlos Piani and Rodrigo Xavier; NASDAQ-listed Itiquira Acquisition Corp., led by Paulo Carvalho de Gouvea, previously associated with XP Inc., MMX, Eneva and Rede D’Or; NASDAQ-listed Alpha Capital Acquisition Company, led by OLX founder Alec Oxenford and former head of Qualcomm Latin American and Cisco Brazil Rafael Steinhauser; and NYSE-listed Replay Acquisition Corp., led by Edmond Safra and Gregorio Werthein of Argentina’s Werthein Group. All five of the foregoing launched with the stated purpose of acquiring a business in Brazil or elsewhere in Latin America. Replay ultimately announced the acquisition of Blackstone portfolio company and US-focused Finance of America Equity Capital LLC instead, illustrating the flexibility enjoyed by both SPAC sponsors and, via the effective put option on their shares, shareholders.

Patria, HPX, Itiquira and Alpha have yet to announce a proposed acquisition. Brazilian sponsors have also launched SPACs with the express purpose of outbound investment into the developed world, as was the case with the NASDAQ-listed vehicle launched by GP Investments in 2015, GP Investments Acquisition Corp., which ultimately acquired US software services company Rimini Street, Inc. On the target side, sanitation company Estre Ambiental S.A. became NASDAQ-listed through a December 2017 merger with Boulevard Acquisition Corp. II, a SPAC sponsored by executives of Avenue Capital Group which, interestingly, at its launch expressed no particular plans to seek Brazilian or non-US businesses.

Despite the recent increase in activity in the Latin American capital markets, the reality is that it remains a very volatile environment for companies to raise capital. In this context, Latin American companies, especially in the technology and financial sectors, have more recently in growing numbers considered a listing in the US as an alternative for their capital needs. For Latin American sponsors, it is an interesting opportunity to take advantage of the current excess of liquidity in the US market and make the bridge between US investors and great companies in Latin America looking for capital. As SPACs become an increasingly dominant portion of public US capital markets, Brazilian and other emerging market investors and companies who seek access to that market should naturally find themselves more active in one side or another of these transactions.

latin business
Archives, Global Trade Daily, International Trade

Uncovering the Biggest Myths for Business in Latin America

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Conducting international business is not what it used to be. In the post-pandemic era, resilient regions throughout the world are at an advantage now more than ever. Unfortunately, business climates are at the mercy of a media-painted reputation impacting future economic growth. Latin America is no stranger to this. Businesses and workers in Latin America have been misrepresented in the media, particularly when it comes to corporate corruption and compliance. In this exclusive Q&A, Global Trade Magazine learns about the biggest misconceptions of doing business in Latin America by Pedro Freyre, chair of Akerman International Practice.

What are some common misconceptions for conducting business in Latin America and how does this impact the region’s economic reputation?

Pedro: One of the biggest misconceptions is that Latin American businesses are not up to speed on the use of technology. These misconceptions – or what some could call biases, are that businesses in Latin America are unsophisticated and they lack understanding complex issues. This is absolutely incorrect.

Latin America is a resilient, tough business environment with a lot of ups and downs, but also very global in that it deals with various jurisdictions in its trade relationships. I have found Latin American clients to be sophisticated and understanding of issues and nuances. There are always legal cultural differences and part of our job is that we are the interpreters that bridge this gap.

Latin American business and businessmen have lived for many years in difficult and volatile environments, making them very adaptable. They are fast on their feet and work with different cultures, buyers, and sellers, and various interlocutors very well because that is what they had to do to survive and succeed. This is one of the competitive advantages found here because that’s what businesses had to do to survive in the past. Latin Americans are incredibly open to dealing with different nationalities, markets, and opportunities.

How does your firm support Latin American clients in combatting issues with noncompliance and corporate corruption?

Again, our job is to bridge that gap – the legal cultural gap of raising awareness. Now more than ever there is a new and evolving set of stricter global standards in compliance, anti-corruption, and anti-money laundering. The web of those types of regulations is extending and becoming highly integrated. So, you have the FCPA in the U.S and the other anti-money laundering provisions, the UK anti-bribery act, the Brazilian anti-bribery act, and the Mexican anti-bribery act. All of these work to add layers of regulatory compliance..

Another factor coming into play is that we help clients deal with non-governmental regulators that look for compliance. For example, financial institutions ramping up their compliance department to act as guard dogs for the government. So, when a Latin American client comes over to the U.S and wants to open a bank account, we help them understand that there is going to be due diligence on the part of the bank and that they’re going to have to provide a lot of information. That is where the added value comes into play by emphasizing that compliance in today’s world is far more pervasive and necessary for any business.

What role does technology play in combating this corruption?

Technology is just as integrated in the effort. I will give you an example. We recently had a wire come in from one of our clients in Latin America and OFAC flagged it and started doing more background checks to identify the source of the funds because the name of the remitter was similar to a company that was on the Specially Designated Nationals list. The software picked up the name, tasking us to explain the situation.

What are some of the benefits of collaborating with Latin American-based businesses?

Latin America has vast natural resources. For example, Brazil is a leading provider of all kinds of natural resources. Back in the forties, Argentina was a main provider of grains and beef to Europe. The region was a tremendously powerful provider of these things. Currently, the Chinese are making inroads over Latin America in their search for raw materials and agricultural products. It’s part of the natural wealth of Latin America. Latin American businesses are now becoming much more integrated, enabling cross-border business.

How has the pandemic exacerbated the negative reputation for Latin American companies? What can companies do to overcome this?

This is a challenge because part of what happens is what companies predict in terms of government action. If a business climate has a government with a clumsy response to the pandemic, then the assumption is everybody in that country is at risk. It is not working, and things are in disarray, creating the need for uprooting and taking business elsewhere. And again, we go back to the point of resiliency and adaptability. Latin American businesses have been there before, they come from an exceedingly difficult environment, stability has always been a challenge. So, even in the pandemic, these businesses have been able to adapt and move forward. Adding to the misconceptions list is if the government did not react well to the pandemic, then the businesses are not able to function. That is simply untrue.
It is important to remember that this is a business climate fraught with peril and difficulties but is also full of opportunity. As the saying goes, out of great problems come great opportunities.

I anticipate a reshuffling of assets and business orientation and interests soon. We are seeing more flow out of Latin America and more flow to Latin America. This year is going to be a year of takeoff, although I do think Latin America may lag behind the U.S. I’m also keeping my eye on Brazil, which is going through great difficulties. Brazil is a major powerhouse, however, and I am betting on it overcoming these difficult times.

__________________________________________________________________

Pedro Freyre is the chair of Akerman’s International Practice, a full-service team advising multinational and global corporations on a wide range of cross-border M&A, joint ventures, capital markets transactions, syndicated and secured lending, project finance, debt restructuring, trade, compliance, as well as complex construction and other international disputes. He is an internationally recognized authority on the U.S. Embargo on Cuba and the evolving regulations enacted since the restoration of diplomatic relations between the United States and Cuba.  In addition, Pedro represents clients engaged in inbound foreign investment in the U.S. and outbound U.S. investment in Latin America.

local payment
Archives, Banking, Global Trade Daily

How Local Payment Methods Are Helping Fuel Latin America’s e-Commerce Boom

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One glimmer of good news for the economies of Latin America (LATAM) during the COVID-19 pandemic is the incredible boost in e-commerce. According to eMarketer Insider Intelligence, LATAM saw the world’s greatest e-commerce growth in 2020, taking first position ahead of Asia-Pacific.

While the growth in 2020 may have been driven by lockdowns and social distancing, it’s an indication of what’s to come in a new digital-first era. Increasing and customizing local payment methods for e-commerce could accelerate growth for Latin American economies even faster.

To see what we mean by local payment methods (LPMs), let’s explore the region’s dynamic payments landscape.

Buy global. Pay local.

Aside from cash vouchers, local credit card schemes are one of the dominant forms of payment across LATAM. Local cards make up 58% of all online transactions in LATAM. These credit cards such as Elo or Hipercard – or even locally issued MasterCard and Visa cards – are tied to local and regional financial networks and cannot be used to make payments on international websites or anywhere outside their home country.

Other LPMs are built around installment payments. In LATAM, this option requires the customer to have the total price of their purchase available within their credit card limit, yet the merchant agrees to charge the card in installments.

LATAM Buy Now Pay Later methods are an arrangement between the consumer and the merchant; in effect, a cash payment over time. By contrast, in the U.S., systems like Klarna and Afterpay fund the transaction, and the consumer makes monthly installments to the service: in effect, a loan.

Installment payments are a familiar and popular way for LATAM consumers to pay, even for small purchases. As evidence, 60% of e-commerce purchases are paid for using an installment plan according to EBANX.

Another LPM being used for e-commerce is  OXXO in Mexico. OXXO is a voucher-payment option that leverages the ubiquity of 21,000+ OXXO convenience stores, enabling unbanked and security-conscious consumers to fund online purchases.

In Argentina, Rapipago and Pago Fácil enable offline payments for online purchases through their extensive network of physical locations.

Future. Proof. 

The growing demand for digital purchases and peer-to-peer payments is driving the creation of new LPMs to enable instant processing. For example,  Brazil’s PIX was created by the Central Bank of Brazil to enable instant payments in real-time, 24-7, without requiring debit, credit cards, or a bank account. In trials since 2019, the system formally launched in November of 2020 with participation by 980 financial institutions, 20 million users forecast for its first year and reduced transaction costs between 10 – 40 percent. This is seen as a major accelerant for commerce of all kinds.

As with all aspects of culture, financial behavior is shaped by the habits and preferences of the local population. Providers that host LPM infrastructure can enable online transactions in familiar ways that further fuel that channel. By satisfying these niche, local consumer needs, LPMs also dovetails with the global trend towards greater personalization of the online shopping experience.

As local payment methods are adapted to e-commerce — enabling transactions across a range of methods on a single payments platform — LATAM consumers will gain greater access to global goods and services. With LPMs designed to meet niche, local consumer needs, demand will only heighten as personalization continues to drive today’s lifestyle. The more ways there are to pay, the greater business can accelerate: LPMs are the engine of future economic growth.

__________________________________________________________________

 Steve Villegas is the VP of Payments Partnerships at PPRO.

sweet potato
Archives, Global Trade Daily, News

The Sweet Potato Market in Latin America and the Caribbean Peaked at $3.4B

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IndexBox has just published a new report: ‘Latin America and the Caribbean – Sweet Potato – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

In 2019, the Latin American sweet potato market was finally on the rise to reach $3.4B for the first time since 2016, thus ending a two-year declining trend. The market value increased at an average annual rate of +3.2% over the period from 2013 to 2019; the trend pattern remained relatively stable, with somewhat noticeable fluctuations being recorded in certain years. Over the period under review, the market attained the maximum level in 2019 and is likely to see further growth in years to come.

Consumption by Country

The countries with the highest volumes of sweet potato consumption in 2019 were Haiti (759K tonnes), Brazil (756K tonnes) and Cuba (564K tonnes), together accounting for 68% of total consumption. These countries were followed by Argentina, Peru, Uruguay and Mexico, which together accounted for a further 25%  (IndexBox estimates).

From 2013 to 2019, the most notable rate of growth in terms of sweet potato consumption, amongst the key consuming countries, was attained by Mexico, while sweet potato consumption for the other leaders experienced more modest paces of growth.

In value terms, Haiti ($1.4B) led the market, alone. The second position in the ranking was occupied by Cuba ($619M). It was followed by Brazil.

The countries with the highest levels of sweet potato per capita consumption in 2019 were Haiti (67 kg per person), Cuba (49 kg per person) and Uruguay (24 kg per person).

Production in Latin America and the Caribbean

For the seventh year in a row, Latin America and the Caribbean recorded growth in the production of sweet potato, which increased by 4.5% to 3.1M tonnes in 2019. The total output volume increased at an average annual rate of +4.0% from 2013 to 2019; the trend pattern remained consistent, with somewhat noticeable fluctuations in certain years. The generally positive trend in terms of output was largely conditioned by a perceptible increase of the harvested area and a relatively flat trend pattern in yield figures.

Production by Country

The countries with the highest volumes of sweet potato production in 2019 were Brazil (764K tonnes), Haiti (759K tonnes) and Cuba (564K tonnes), together comprising 67% of total production. These countries were followed by Argentina, Peru, Uruguay and Mexico, which together accounted for a further 25%.

From 2013 to 2019, the biggest increases were in Mexico, while sweet potato production for the other leaders experienced more modest paces of growth.

Sweet Potato Harvested Area and Yield

The sweet potato harvested area was estimated at 294K ha in 2019, growing by 1.6% on the year before. The harvested area increased at an average annual rate of +4.3% from 2013 to 2019; the trend pattern remained relatively stable, with only minor fluctuations being observed in certain years.

The average sweet potato yield amounted to 11 tonnes per ha in 2019, picking up by 2.8% compared with the previous year’s figure. Overall, the yield, however, showed a relatively flat trend pattern.

Imports in Latin America and the Caribbean

In 2019, approx. 13K tonnes of sweet potato were imported in Latin America and the Caribbean; which is down by -5.9% against 2018. Total imports indicated a buoyant increase from 2013 to 2019: its volume increased at an average annual rate of +9.6% over the last six-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2019 figures, imports increased by +73.4% against 2013 indices. In value terms, sweet potato imports amounted to $7M (IndexBox estimates) in 2019.

Imports by Country

Mexico was the major importer of sweet potato in Latin America and the Caribbean, with the volume of imports reaching 5.3K tonnes, which was near 42% of total imports in 2019. Argentina (2.3K tonnes) took the second position in the ranking, followed by Ecuador (1,479 tonnes), Uruguay (1,194 tonnes), Paraguay (602 tonnes) and Chile (583 tonnes). All these countries together held approx. 49% share of total imports. Trinidad and Tobago (393 tonnes) followed a long way behind the leaders.

Imports into Mexico increased at an average annual rate of +15.2% from 2013 to 2019. At the same time, Paraguay (+60.8%) displayed positive paces of growth. Moreover, Paraguay emerged as the fastest-growing importer imported in Latin America and the Caribbean, with a CAGR of +60.8% from 2013-2019. Ecuador experienced a relatively flat trend pattern. By contrast, Chile (-4.9%), Uruguay (-5.6%), Argentina (-8.6%) and Trinidad and Tobago (-23.2%) illustrated a downward trend over the same period.

In value terms, Mexico ($3.3M) constitutes the largest market for imported sweet potato in Latin America and the Caribbean, comprising 48% of total imports. The second position in the ranking was occupied by Chile ($772K), with an 11% share of total imports. It was followed by Argentina, with an 8.5% share.

In Mexico, sweet potato imports expanded at an average annual rate of +24.5% over the period from 2013-2019. The remaining importing countries recorded the following average annual rates of imports growth: Chile (+20.8% per year) and Argentina (-11.0% per year).

Import Prices by Country

The sweet potato import price in Latin America and the Caribbean stood at $551 per tonne in 2019, surging by 12% against the previous year. Over the last six-year period, it increased at an average annual rate of +3.1%. The most prominent rate of growth was recorded in 2017 an increase of 14% against the previous year. The level of imports peaked in 2019 and is expected to retain growth in the immediate term.

Prices varied noticeably by the country of destination; the country with the highest price was Chile ($1,324 per tonne), while Ecuador ($165 per tonne) was amongst the lowest.

From 2013 to 2019, the most notable rate of growth in terms of prices was attained by Chile, while the other leaders experienced more modest paces of growth.

Source: IndexBox AI Platform

Exporta Wholesale
Archives, Global Logistics, Global Trade Daily

Here’s How Exporta Wholesale Maintains Competitive Digital Trade Position

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Refining the buyer experience for product sourcing requires more than the latest in technology advancements. In order to successfully achieve a competitive position in the marketplace, providers must consider the resources available and infrastructure in place that supports the customer’s goals while streamlining operations.

Exporta Wholesale, known as one of the largest digital trade networks between Latin American suppliers and U.S. Buyers, sets a higher standard by utilizing their technology toolbox for robust wholesale market opportunities. In this exclusive Q&A, Exporta Wholesale’s Co-Founder Rob Monaco discusses how the company sets itself apart while supporting the manufacturing sector in Latin America.

What is Exporta Wholesale?

Exporta Wholesale is the largest marketplace connecting suppliers in Latin America with buyers in North America. Today, we have a network of over 5,000 Latin American suppliers serving a variety of consumer goods and product categories in the United States.

How is it different from the existing sourcing platforms?

Exporta’s marketplace offers buyers a full-service experience in the origination, sourcing, and managing of products. The platform was founded on the idea that curation and service are the most important elements in the buyer’s journey. Exporta’s marketplace is building technology that addresses the pains of sourcing products internationally at attractive prices. Our platform enables buyers to submit a short description of key product requirements, and our
technology provides them with 3 supplier matches that meet all of the buyers’ requirements. From there, buyers are able to request samples and place purchase orders. At any time, you can speak with someone from the Exporta team, in English, and avoid dealing with any number of supply chain disruptions due to unreliability or
miscommunication.

How can your software improve the sourcing experience? How do you create a Supplier-matching experience?

Our marketplace platform offers buyers curated suppliers that fit their specific requirements: size, speed, cost, and design. Rather than browse thousands of suppliers and individually negotiate with them across language and time barriers, Exporta has built technology that enables buyers to quickly and efficiently find long-term partners for all their buying needs.

When it comes to manufacturing products, is Latin America Good at Manufacturing? What products can be manufactured in Latin America?

Latin America consistently ranks as the top region in the world in total entrepreneurial activity and mobility in the factors of production. In addition to public sector support in recent years to improve its infrastructure, Latin America has a geographic advantage in 3 main categories: (i) textiles, (ii) consumer products (including food & beverage), and (iii) industrial products (including raw materials and packaging). Today, Latin America is now the largest regional supplier to the United States.

How can they offer better quality than Factory Asia?

All of our suppliers are vetted to ensure they are in compliance with federal and local manufacturing standards. Once Exporta confirms the suppliers are in good standing, we audit the factories to ensure environmental and workplace compliance. Over the years, we have turned away thousands of suppliers that don’t meet the rigorous standards that Exporta requires from joining the platform. We offer support for these manufacturers in meeting compliance standards so that they can eventually join the Exporta platform and begin transacting.

If Latin American manufacturers are so good, why aren’t they as known as factory Asia?

It has taken many years for Latin America to build the infrastructure and technology required to manufacture products at competitive pricing. In the years to come, Latin America will continue to emerge and grow, the same way China did approximately 20 years ago. In fact, in 2019, Latin America overtook China as the number 1
export partner with the U.S. and the trend is continuing into 2020 and beyond.

Is the infrastructure of the region prepared to offer wholesale products quickly and with good quality?

Absolutely, with an abundance of freight forwarders, logistics partners, and free trade agreements, Latin America is positioned well to manufacture and deliver high-quality products all over the world. Lots of capital is being invested in the region to ensure they are able to meet the sourcing demands of the rest of the world.

Can political change and government instability influence the process of manufacturing in Latin America?

It is always difficult to anticipate changes in the regulatory or political environment, but within Latin America, the private and public sectors are united to drive economic growth within the broader manufacturing economy. As mentioned previously, the U.S. has a strong relationship with Mexico, Central, and South America.

Are there any international policies that benefit trade with this region?

As of this writing, the USA has 20 free trade agreements with the rest of the world; 11 of them are from Latin American countries.

Is production in Latin America more environmentally responsible?

A big reason why Latin America is emerging is because of its clean and transparent manufacturing process. Asian factories are one of the main contributors to the world’s total greenhouse gas emissions, and their labor practices have been subject to ongoing scrutiny from Civil Rights and Labor Organizations. As our society becomes more mindful of the environment, Exporta is finding ways to be a leader in responsible manufacturing practices.

on-demand economy
Archives, Global Trade Daily, International Trade

5 Trends for Latin America’s On-Demand Economy in 2020

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Latin America’s on-demand economy has been at the top of the region’s startup headlines for over a year. At the end of 2018, Brazil’s iFood raised $500M in the largest startup round of all time in Latin America, beating the total VC investment for 2016 with a single round. Just four months later, Colombia’s Rappi doubled the record, raising $1B from Softbank to attack the region.

A significant portion of Softbank’s massive investments in Latin America has been in on-demand economy startups, such as Loggi and Buser. Cornershop’s acquisition saga, ending in a $450M deal with Uber for 51% of the company, also makes it clear that the gig economy will play a major role in developing Latin America’s tech-driven economy.

The rapid growth of this business model has raised questions about regulations, workers’ rights, safety and fraud, and long-term profitability for investors. It has also created work for thousands of migrants, made consumers’ lives easier, and started generating liquidity and ex-employee groups who can start new companies using their startup experience. As Latin American consumers become accustomed to the on-demand economy, here’s a look at how this market will evolve throughout 2020.

1. Regulatory challenges for the Latin American gig economy.

International on-demand startups like Uber experienced (and continue to experience) a regulatory gray area while entering the Latin American market. As homegrown companies like Rappi, Cornershop, and iFood have become a dominating force across the region, governments may start taking a closer look at workers’ contracts and rights.

In particular, on-demand startups that rely on massive, external workforces have been a significant source of work for migrants who can start working from day one without a contract. Rappi admits that up to 30% of its workers are migrants, many of whom are from Venezuela and are escaping a crisis at home. In 2018, Colombia’s Domicilios (acquired by DeliveryHero) became the first delivery startup to provide social security for its workers.

Governments across the region may begin to expect gig economy startups to provide certain benefits like these to their workers in 2020 as these companies begin to employ a significant portion of Latin American workers.

2. The market opens for companies that support the gig economy.

The need for further regulation and protection of workers in the gig economy is creating a new market for startups that serve these large companies. Tech startups that provide insurance, fraud prevention, and benefits to on-demand economy workers now have a pool of millions of potential clients who are connected to the region’s mega-startups.

For example, Colombia’s Truora can provide instant background checks for gig economy employees to prevent hiring bottlenecks and fraud. Companies that can offer tech-driven solutions for market research, insurance, healthcare, and financial inclusion for the on-demand economy will continue to grow in parallel to this booming market in 2020.

3. VC funding for on-demand startups holds firm.

Over the past two years, international VCs have poured billions into the Latin American on-demand economy, creating a market for dozens of competitors in the region’s biggest countries like Brazil, Colombia, Mexico, and Chile. The growth of the Latin American middle class, almost all of whom has access to a smartphone, is also bolstering the rise of on-demand startups to serve every niche.

While most of these startups struggle to become profitable, even in markets like Latin America and Asia, investors who have backed the on-demand economy in the US and Asia understand the model and are willing to support Latin American versions. As these startups burn a lot of cash quickly, investors will likely continue dropping large checks on the winners as they try to capture the market. Startups that bring an on-demand model into new industries may also benefit from this influx of capital over the next year.

4. Niche copycats from the US and Asia enter the market.

Latin American consumers have proved to be rapid adopters of on-demand economy solutions, driving new business models to serve an increasingly sophisticated public. For example, Latin America’s ghost kitchens and supermarkets are beginning to raise large rounds in markets like Brazil and Mexico. Brazil’s Mimic, a cloud kitchen startup, recently raised a $9M Seed round to expand locally, while Mexico’s Justo, the first “cloud supermarket” for Latin America, raised $10M to consolidate in the Mexican market.

While these models are still in the early stages of development, the on-demand economy will continue expanding into new industries and business models in 2020. Startups are now using gig economy-style workforces for market research, AI precision-testing, and other crowd-sourcing models, as well as new niche delivery markets. As capital continues to flow into on-demand economy startups in 2020, these new applications of the gig worker model will likely proliferate.

5. Competitors consolidate in the biggest markets.

Just as investments are driving the growth of new on-demand business models, VC support is also helping consolidate the region’s largest startups into “super-apps” that can solve users’ problems within a single platform. Rappi is one of the best examples of these apps, where users can now book an e-scooter, get money delivered, buy food and groceries, and even pay and send money. While all of the Rappi features are not well-known by users yet, this model hints at a trend toward Asian-style all-in-one apps like WeChat.

Brazil’s Movile has also acquired several regional startups to provide a marketplace of options within its platform, including on-demand delivery (iFood/Mercadoni), video content (PlayKids), and payments (Zoop). These well-funded companies will continue to grow and consolidate in 2020, potentially acquiring smaller startups that can add value for their customers and injecting liquidity into the on-demand startup market.

There are over 415 million mobile phone users in Latin America, over two-thirds of whom access the Internet almost exclusively through their phones. The region’s first on-demand startups have opened the market to reach these consumers by providing them with convenient and affordable services directly through mobile apps. These companies have even found workarounds for payment challenges through cash payments and integrations with local convenience stores to onboard the booming Latin American middle class rapidly. There is still tremendous opportunity to reach Latin Americans with on-demand services in new industries and expand current offerings to new cities and customers throughout 2020.

_______________________________________________________________

 Geoffrey Michener is the CEO and Founder of dataPlor.

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Archives, Global Trade Daily, Special Reports

New Challenges for Brazilian Markets

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Usually, when we talk about Latin America one of the first markets that come to mind is Brazil.

Brazil is experiencing a unique moment never experienced before in the local economy: the lowest level of interest rate and, therefore, a large demand from investors for assets that could generate a considerable performance, in the period.

Historically, the Brazilians Investor Profile has been strongly related to a conservative shape, once the Selic rate – the country’s basic interest rate – has constantly been at comfortable levels for those people who invest in conservative products, such as Savings and Certificates of Deposit, for example. Nonetheless, this perspective has been changing since the end of 2016 with the consecutive action from the ‘Comitê de Política Monetária’ (known as COPOM – very similar to the US FOMC) in reducing the interest rate, and proportionately seeking to promote the local economy. In addition, this domestic reduction is being quite influenced by the US Federal Reserve process of cutting rates.

It is possible to observe the interest yield curve below:

For this reason, financial institutions and brokerage firms are working hard on clients ‘financial education and portfolio reformulation, in order to adapt their clients’ investment portfolio to this new stage of Brazilian Market. Most analysts and advisors are aligned and agree with the Central Bank’s official reports, betting on new interest rate cuts for 2019 and, as a result, it benefits other types of asset classes, such as the Brazilian Stock Market.

Regarding that, the Ibovespa (Índice da Bolsa de Valores de São Paulo), the main indicator of the average performance from the Brazilian stock market, at the beginning of 2019 was quoted at approximately 91,000 points and until the last day of September it had an evolution of around 15% reaching its 103,600 points, with a standard deviation of, approximately, 20%. The Index has now reached record levels. Typically, with the movement of diminishing interest rates, as any other economy, there is a natural increase in demand for this type of assets, which takes a favorable and positive aspect of the segment this year, specifically given the Pension Reform approvals and lower projections for the IPCA (Índice de Preços ao Consumidor Amplo) – Brazilian official inflation index.

The latest statistic released showed 2.89% in the 12 months through September, according to IBGE – Instituto Brasileiro de Geografia e Estatística (Brazilian government statistics agency). The Central Bank’s official year-end goal for 2019 remains 4.25%, and due to this fall in inflation expectations most economists consent to another 50 basis point cut in the Selic rate at the end of this month – precisely, the next reunion will happen in 10/29/2019 and 10/30/2019.

Essentially, for the local investor, there are several alternatives to access this market, such as Equities Funds, ETFs or Active Mutual Funds. Furthermore, the whole market is gradually seeing an increase in fundraising this type of product, this is very clear if we look through the development of new asset management firms, for instance. Consequently, the biggest challenge for the investor is to adapt themselves to this relatively new type of culture in diversifying the portfolio with risky and volatile products.

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Archives, Global Trade Daily, International Trade

Embracing the South American Ecommerce Marketplace

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Ecommerce is on the rise in South America. Double-digit growth is expected for 2019 with sales of $71.34 billion (USD), tying it with the Middle East and Africa as the world’s second-fastest-growing retail ecommerce market. 

That’s great news for shippers looking to expand their online retail presence in South America.

A diamond in the rough

Online retailers in South America have been struggling for years to overcome several obstacles to success, including extensive customs delays, poor transportation infrastructure, and the lack of end-to-end supply chain visibility. Progress has been made on all three of these “challenges,” but more work is necessary to ensure the region’s continued double-digit growth. 

Within each challenge lies opportunity

While these obstacles may keep a few shippers from expanding into South America, others are viewing the area as a “diamond in the rough” and working diligently to reap the rewards of this truly untapped region. 

Having the right information is the first step to wading through the muck and mire of this complicated ecommerce marketplace:

South America customs vary by country

Red tape and bureaucracy pose the biggest obstacles for importing products into South American countries. In addition to customs taxes, tariffs, and fees, it can take 30+ days for some goods to be cleared through customs, especially in Brazil and Argentina. As a result, inventory builds up, costs rise, and customers wait longer for their products to arrive. In comparison, however, Chilean customs are very similar to the U.S. and allow products to flow through relatively quickly.

As you can tell, customs procedures can differ significantly, making it difficult for shippers to ensure compliance with each region’s unique customs. For a more seamless process, it’s essential shippers work with a customs broker or third party logistics provider (3PL) with local offices in the area. They’ll know the customs standards and understand the paperwork necessary to ensure products are approved for import.

Free trade agreements 

The United States-Chile trade agreement allows all U.S. exports of consumer and industrial products to enter Chile duty free. While still in the works, the United States-Brazil free trade agreement can help facilitate trade and boost investment between the two countries, especially in infrastructure. The United States-Colombia Trade Promotion Agreement eliminates tariffs on 80% of U.S. consumer and industrial imports into Colombia. 

South America infrastructure at port and inland

South America is hobbled by its inadequate infrastructure, and it’s probably not going to change anytime soon. Roads remain the primary means of transportation, but 60% are unpaved, hampering the speed of delivery by truck to inland locations. Improvements are slowly occurring, thanks to increased government funding (but corruption hampers many efforts). It’s worth mentioning that China, the largest trading partner of Brazil, Chile, and Peru, invests heavily in the region, providing more than $140 billion (USD) in loans for infrastructure improvements in the past decade, according to The Business Year.  

While surface transportation remains stagnant, ocean freight shows promise. According to icontainers.com, routes going to and from South America represent 15% of the total number of trade services.

The largest container port in South America is in the city of Santos in Brazil’s Sao Paulo state. Its location provides easy access to the hinterlands via the Serra do Mar mountain range. More than 40% of Brazil’s containers are handled by the Port of Santos as well as nearly 33% of its trade, and 60 % of Brazil’s GDP, according to JOC.com. 

In 2018, Brazil’s busiest container cargo port handled 4.3 million TEUs, compared with 3.85 million TEUs in 2017. 

For Argentina, Zarate serves as the critical port for roll-on/roll-off (ro-ro) and breakbulk cargo, while Buenos Aires and Rosario serve as the top container ports. Only two countries in South America are landlocked, Paraguay and Bolivia. 

Shippers and ocean carriers using the Port of Santos have been complaining about congestion and labor disputes at the port, and about politicization and time-consuming bureaucracy. That’s why it’s essential that shippers must have the latest information on traffic through these South American ports. Global freight forwarding companies in the area will have the newest information available to help you choose the right port of entry for your freight.

End-to-end supply chain visibility

Most online retailers and carriers understand that the sale is not complete until the product is delivered to the consumer. If merchandise is damaged during transport or arrives much later than promised, it reflects poorly on both parties and undermines consumer trust in ecommerce purchases. 

Lack of adequate infrastructure has forced many online retailers to put logistics on the back burner, focusing on the user experience through purchase. That’s why many products take weeks to arrive at the customer’s door, setting a bad precedent that must change. 

The South America trucking industry is highly fragmented, with providers ranging from owner-operators (about one-third of the industry) to sizable fleet operators and experienced freight forwarders who may not own any trucks at all, according to Tire Business newspaper. 

Final mile, LTL services paramount in South America

Once your product reaches port in South America and makes it through customs, how it gets delivered to the customer’s door can add extensive costs to your supply chain. Less than truckload (LTL) and final mile services are paramount to successfully operating in the region. Especially those carriers that can provide GPS freight tracking capabilities, such as C.H. Robinson’s Navisphere® technology. 

Final thoughts

Yes, there are obstacles to operating a supply chain in South American countries. Knowing the ins and outs of each country’s unique customs procedure, understanding which South American ports are best for your freight, and being able to track your shipments end-to-end will ensure your success in the region. Shippers who realize the potential of this “diamond in the rough” marketplace should work with a freight forwarder who will be extra focused and diligent in ensuring their freight moves quickly from customs fiscal warehouses to the final destinations. 

Enlist the aid of a global freight forwarding provider, like C.H. Robinson, who offers a global suite of services and has offices in the region that can help navigate any disruption in your supply chain.

Start the discussion with an expert in South America to accelerate your ecommerce trade. 

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Archives, Global Trade Daily, International Trade

Peeling Away Trade Protections for Bananas

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Simple in appearance, pleasantly sweet, nutritious, and nearly universal in appeal, that Cavendish bunch of bananas on your counter comes off as pretty unassuming. In reality, it has been through jungle wars and trade wars and now sits on the precipice of extinction. More than half of the bananas traded globally are the Cavendish variety. But with two diseases threatening the world’s largest Cavendish plantations, growing to love more varieties could help save trade in bananas.

Still an Important Cash Crop

Grown in more than 150 countries, bananas are the eighth most important food crop in the world – fourth most important in developing countries. Bananas are among the most traded fruit in the world, generating revenues of more than $8 billion a year for the top banana exporters including Ecuador, the Philippines, Costa Rica, Colombia and Guatemala. However, most are produced for local or national consumption.

For example, the Food and Agriculture Organization estimates that between 70 and 80 percent of bananas in Africa are produced by smallholder farmers. Around 114 million tons are produced globally beyond what isn’t too small to be counted, yet only 19 million tons were shipped globally. That said, for the top five exporters, bananas are a major contributor to the total value of their agricultural exports. India and China are among the biggest producers but their output mainly serves the large domestic markets.

global bananas trade

Peeling Away Trade Protections

The Banana Wars, centered on the European Union’s (EU) banana trade regime, spanned 20 years as the longest running series of disputes in the multilateral trading system to date (although the Boeing-Airbus dispute may be on track to take that title). As one of the most significant episodes in trade law, the Banana Wars are deserving of more attention, but here are some abridged highlights.

Europe’s banana regime began as an umbrella for complex arrangements at the individual EU Member State level that were designed to offer exclusive or preferential access to former colonies in Africa, Caribbean and the Pacific (ACP), and at the same time shield EU producers from competition.

Under the EU’s original regime, ACP countries received a zero-tariff rate while imports from other countries were taxed at 20 percent. However, each Member State was allowed to “derogate” and maintain special protective provisions for imports from their overseas departments. For example, France set aside two-thirds of its market for Guadeloupe and Martinique and the remaining third for the ACP Franc Zone states of Cameroon and Cote d’Ivoire. The Spanish market was reserved for shipments from the Canary Islands. Greece banned imports to protect its own production in Crete. Only Germany opened to free trade.

The Single European Act of 1986 mandated an integrated EU market by January 1993, which required that Member States consolidate their programs into a common regime for bananas. As devised, this version still enabled members to discriminate among imports by source, offering better terms to their overseas departments and to imports from ACP countries. Colombia, Costa Rica, Guatemala, Nicaragua and Venezuela (supported by the United States) challenged the regime as inconsistent with the EU’s obligations under the GATT.

The EU’s ability to offer tariff preferences was upheld because it had a waiver in the GATT for its general tariff preference program; but the GATT Panel found the EU’s discrimination through tariff quotas to be inconsistent with its obligations. However, prior to the WTO, a GATT member could simply veto the outcome of a panel decision, enabling the EU effectively to ignore the GATT Panel ruling.
EU banana imports

Second Banana

The EU revised its banana regime in 1993 to include new special distribution licenses under a general quota. Licenses were divvied up among primary importers and importers performing secondary activities such as customs clearance, warehousing and storage; licenses were dependent on historical performance, subject to country allocations, market share and other criteria. After yet another challenge by the five Latin American countries, a GATT Panel found in 1994 that the EU’s licensing system was excessively restrictive and not covered by its waiver.

After 1995, with the WTO’s enforceable dispute settlement system in place and additional obligations to avoid discrimination in trade in services, the EU recognized it would face more challenges to its regime. The large multinational producers involved in shipping, warehousing, ripening, marketing and distribution had an even stronger case to make. The EU negotiated with all of the disgruntled Latin American producers but Guatemala to head off the legal challenge. Having offered additional or expanded quotas, they temporarily pleased some countries but further worsened the discriminatory effect for those countries not a part of the negotiation.

A third complaint against the EU’s banana regime was reviewed in the WTO in 1996, this time with the United States as the lead plaintiff in response to complaints from Chiquita and the Hawaiian Banana Association. A WTO decision in 1997 again concluded that, although the EU’s discriminatory tariffs were covered under its historical waiver, its tariff quota allocations and convoluted import licensing administration violated its WTO obligations. The EU’s next version of its banana regime did little to remedy the discriminatory elements, which led to the imposition of tariffs by the United States and Ecuador in response to the EU’s failure to comply with the WTO ruling. By 2001, the EU made another attempt to transition its system, but not until 2006 would the EU decide to phase in a tariff-only system, dispensing with quotas.

Banana Splits

At the end of 2009, after negotiations with non-ACP producers, the EU agreed to reduce the tariff rate it applies to all WTO members. Tariffs would come down from 176 euros per ton to 114 euros per ton by January 2017 (stipulating it could revert to higher rates if exporting countries exceed a “trigger” amount of imports). It wouldn’t be until 2012, that the EU and 10 Latin American countries finalized signed an agreement in the WTO to codify the revised EU banana tariff schedule (“The Geneva Banana Agreement”), officially closing the longstanding legal disputes.

As a prologue, the EU signed trade agreements with Andean and Central American countries in 2013 and Ecuador in 2017. Ecuador has seen a large bump in global export volume as its agreement with the EU is implemented. By next year, the tariff on bananas from Ecuador to the EU will go down to 75 euros per ton with no quota on the amount eligible for this rate. As the EU continues to edge toward “freer” trade in bananas, the ACP producers will face considerable adjustment.

2009 Geneva Banana Agreement

Going Bananas

Having survived the banana trade wars, the popular Cavendish banana faces a new challenge, one that could actually wipe them out.

“Panama disease TR4” has ravaged thousands of acres of Cavendish plantations throughout Southeast Asia and Australia and is spreading to Africa and the Middle East. It can lie dormant in soil for decades and has proven resistant to fungicides and fumigants. It is only a matter of time before TR4 takes hold in Latin America, which supplies nearly the entire U.S. market. Banana plantations in the Caribbean are threatened by another disease called Black Sigatoka, which has been reducing banana yields by 40 percent every year in affected areas.

Before Cavendish was top banana, a banana called the Gros Michel (Big Mike) dominated the banana trade in the early 1900s until the fungus TR1 took it to the brink of extinction in the mid-1950s. At that time, the Cavendish variety from China was discovered to be resistant to TR1 so it replaced Mike. But bananas don’t have seeds. They breed asexually so they cannot recombine their genes to ward off threats. In other words, the Cavendish is ripe for attack because it cannot evolve – every generation is a clone of the previous.

Try Hanging with a New Bunch

If scientists don’t make a breakthrough, TR4 and TR1 could spell the end for the beloved Cavendish. With over 1,000 different varieties of bananas growing around the world, why not get to know some others that might grow more popular through trade – here are a few to get you started.

For your next dessert, try using Niño, Manzano (“apple bananas”) that have a hint of apple and strawberry flavor, or Goldfinger, a newer variety from Honduras. Intriguingly, there’s also Blue Java, named for its blue skin, which has a creamy, ice cream-like texture and purportedly offers a subtle vanilla flavor.

Cooking bananas include the Macho plantain and other fun-sounding varieties like the Burro which has squared sides and a lemon flavor when ripe, and the Rhino Horn from Africa, which can grow up to two feet long. If consumers demand it, perhaps global trade in bananas will finally branch out.

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Andrea Durkin is the Editor-in-Chief of TradeVistas and Founder of Sparkplug, LLC. Ms. Durkin previously served as a U.S. Government trade negotiator and has proudly taught international trade policy and negotiations for the last fourteen years as an Adjunct Professor at Georgetown University’s Master of Science in Foreign Service program.

This article originally appeared on TradeVistas.org. Republished with permission.

 

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Delta-LATAM Airlines Partnership Increases Connectivity and Options for Customers

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Delta and LATAM Airlines confirmed a strategic partnership this week, ultimately combining strengths and bringing an increase in overall connectivity between in North America and Latin America. This partnership represents added opportunities within the existing partnerships such as extending networks and each company’s global presence. By adding value and optionality to their Americas customer base, both Delta and LATAM are enabled to increase customer destinations while combining strategies for top-notch passenger service.

“This transformative partnership with LATAM will bring together our leading global brands, enabling us to provide the very best service and reliability for travelers to, from and throughout the Americas,” said Ed Bastian, Delta’s chief executive officer. “Our people, customers, owners and communities will all benefit from this exciting platform for future growth.”

Beyond the customer impact the partnership creates, opportunities for investment and savings will also play a key role in offering support, free cash flow, forecasted debt reduction, aircraft acquisitions and more. Delta confirmed a $350 million establishment investment in addition to a $1.9 billion investment for a 20 percent stake in LATAM through a public tender offer at $16 per share.

“This alliance with Delta strengthens our company and enhances our leadership in Latin America by providing the best connectivity through our highly complementary route networks,” said Enrique Cueto Plaza, chief executive officer of LATAM. “We look forward to working alongside one of the world’s best airlines to enhance the travel experience for our passengers.”

To learn more about this strategic partnership, please visit ir.delta.com OR www.latamairlinesgroup.net/investor-overview for webcasts recapping partnership details. 

Source: Delta Airlines