Region is less impacted by global crisisBy Peter A. Buxbaum, AJOTWith the Asian and European mega trade lanes reflecting the global economic crisis, US trade with Latin America represents a growth area. Lower exposure to the downside of Wall Street financial shenanigans has meant that southern markets continue to demand equipment for large infrastructure and mineral exploration projects. In fact, US exports are growing faster than imports. A report released last year by the Congressional Research Service, right before the worst of the economic crisis was revealed, provides a snapshot of the US-Latin trade situation at that time. “Although not the largest,” noted the report, “Latin America is the fastest growing US regional trade partner, with the exception of Africa,” which is driven by petroleum imports. Between 1996 and 2007, the CRS found, total US merchandise trade with Latin America grew by 137% compared to 110% for Asia, 114% for the European Union, 294% for Africa, and 120% globally. “There are two import trend changes,” the report noted. “First, Mexico has historically been by far the largest US trade partner in Latin America, but total trade with many other Latin American countries increased faster in 2007. Second, for the first time in years, US exports grew faster than US imports.” There is evidence to suggest, at least in some quarters, that US-Latin American trade continues to outshine most other trade lanes even as the world economic situation has worsened. “In the container shipping industry, the crisis does not affect all trades in the same way,” said Marie Lopez, a spokesperson for CMA CGM, the global French-based container carrier. “But it is true that we are witnessing a slowdown in the volumes and quality of freights, especially on the Asia-Europe and Asia-Mediterranean markets.” Meanwhile, CGA-CGM is expanding its services between the United States and South American and the Caribbean. “From what we have seen exports are a bright spot,” said Gary Goldfarb, executive vice President of WTDC, a Miami-based operator of bonded warehouses and chairman of the supply chain and logistics committee of the Greater Miami Chamber of Commerce. “Our business for many years was driven by imports,” Goldfarb added. “Because we operate bonded warehouses the exports fly by rather than get warehoused. But over the last year and a half our business has changed to a 50/50 mix.” After a usual lull in January and February, WTDC has seen an upsurge in export business to Latin America in March. Goldfarb believes that South American countries such as Peru, Chile, and Ecuador have managed to minimize their exposure to the financial chaos overtaking much of the rest of the world. As a result, projects such as mining, exploration, and infrastructure building continue. “That business has not stopped,” said Goldfarb. “We have seen large capital goods continue to move strongly.” Trade in consumer goods is slower, however. Air conditioning systems, mining equipment and materials, piping for irrigation projects, generators, cranes, turbines, and aerospace equipment are all items WTDC have handled recently. “We have a warehouse full of cranes,” said Goldfarb. Much of the maintenance and repair work done for the Brazilian aircraft manufacturer Embraer is done in Miami, he noted. As far as CMA CGM is concerned, the carrier is taking advantage of its strong presence in the US to cover South America, according to Lopez. The group connects to South America via its main services calling the US east coast that offer direct connections in Kingston and Panama. “Volumes proceeding from North America are discharged in these strategic hubs and transshipped to South America,” she said. In addition, CMA CGM continues to launch new services in the region like the new Gulf Bridge Express between the Caribbean and the US Gulf region, calling on Houston and offering fast transit times to Mexico, Columbia and Venezuela as well as connections with the rest of the world through Kings