President Barack Obama will be visiting Latin American countries this weekend. He will be highlighting a series of economic talks with Brazil that could prove fruitful for U.S. businesses, along with related equity-based exchange traded funds (ETFs).
Michael Froman, national security adviser for international economic affairs, stated that “this trip fundamentally is about the U.S. recovery, U.S. exports and the critical relationship that Latin America plays in our economic future and jobs here in the United States,” reports Zachery A. Goldfarb for The Washington Post. Brazil has become an important trading partner as exports to the country have doubled in the past five years.
The Brazilian energy sector and infrastructure sector are potential opportunities for U.S. businesses in Brazil. Brazil could spend up to $200 billion in preparation for hosting the 2014 World Cup and 2016 Olympics. [U.S. ETFs Leave Emerging Markets in the Dust.]
Additionally, President Obama will seek to negotiate more trade deals with Latin America countries to thwart China’s growing influence in the region, writes Randy Woods for BusinessWeek. China has increased purchases from mining, oil and farm industries to supply its own manufacturing industry. Generally, raw materials exports have been driving Chinese demand in the region.
Possible accords that could come from Obama’s visit include a trade and investment agreement to diminish double taxation, cooperation on green energy and collaboration on regional security, comments Christopher Sabatini, senior policy director at the Council of the Americas. Additionally, the administration may conclude changes to trade agreements with Colombia and Panama. [Potential Opportunities In Emerging Market ETFs.]
- iShares Latin America 40 Index Fund (NYSEArca: ILF)
- iShares MSCI Brazil Index Fund (NYSEArca: EWZ)
- iShares MSCI Chile Index Fund (NYSEArca: ECH)
Max Chen contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.