Five-year Forecast - June 2004

Latin America's dealings with Asia are centred on China, Japan and South Korea. In all three cases Latin America provides Asian countries with raw materials. In return, Asia invests (especially in maquiladora plants in Mexico and Central America) and sells the region textiles and tat (toys, watches, cheap furniture and low-value electronics and households goods). Traditionally, Japan was the region's main Asian trading partner, firstly, because there had been so much immigration from Japan to South America (especially Brazil and Peru) at the end of the 19th century and secondly because Japan was so economically successful. South Korea came in Japan's wake but now China is becoming far more important.