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Q: South America Business Practices ( Answered 4 out of 5 stars,   0 Comments )
Question  
Subject: South America Business Practices
Category: Business and Money
Asked by: joel1357-ga
List Price: $100.00
Posted: 04 Jun 2002 17:42 PDT
Expires: 11 Jun 2002 17:42 PDT
Question ID: 21056
I need to know which countries in South America require you to use
agents or trading companies in their country in order to do business.
  
Thank You,  
Joel
Answer  
Subject: Re: South America Business Practices
Answered By: bobbie7-ga on 04 Jun 2002 21:02 PDT
Rated:4 out of 5 stars
 
Hi Joel,

As I live in South America I found your question very interesting.
Here are the results of my search.


Argentina:
An agent is recommended and is required for used Capital goods.
The typical U.S. Company markets through an Argentine agent,
representative or a distributor.
“Large firms generally buy directly from overseas suppliers, with
smaller firms preferring to buy through intermediaries. Industrial
equipment is sold by sales agents or through trade fairs, while
consumer goods are increasingly sold through large outlets such as
supermarkets.
For used Capital goods: “regulations require that the exporter
maintain an official agent or representative in Argentina who can
assure the availability of spare parts and servicing.”

U.S. Commercial Service Website
http://www.usatrade.gov/website/ccg.nsf/CCGurl/CCG-ARGENTINA2002-CH-6:-00762014


Brazil: 
An agent is not required but is recommended.
“Although some companies import directly from foreign manufacturers
without local representation, in most cases the presence of a local
agent or distributor can be very helpful.”

U.S. Commercial Service Website
http://www.usatrade.gov/website/ccg.nsf/CCGurl/CCG-BRAZIL2002-CH-4:-00619F67


Chile:
An agent is not required but is recommended.
“In general, foreign suppliers enter the Chilean market by appointing
an agent, distributor or wholesaler. Agent/representative commissions
normally range from 5 to 10 percent, depending on the product.”

U.S. Commercial Service Website
http://www.usatrade.gov/Website/CCG.nsf/CCGurl/CCG-CHILE2002-CH-4:-00683BE2


Bolivia: 
An agent is advisable and is required if providing products to the
government.
 “An imported product can be sold via established agents or
distributors or through a subsidiary. It is easier to market the
product through an agent or representative because they normally have
easier access to the Directorate for Registration.
Bolivian law specifies that U.S.-based or other foreign firms
interested in providing goods and services to the Bolivian Government
must have a local address in Bolivia and a legal representative or a
local agent to sign the contract, if awarded.”

U.S. Commercial Service Website
http://www.usatrade.gov/website/ccg.nsf/CCGurl/CCG-BOLIVIA2002-CH--006BB658


Colombia:
An agent is advisable and is required if providing products to the
government.
 “Many Colombian companies still prefer to deal with an established
local agent or distributor. If a U.S. Company does not wish to
establish its own sales office in Colombia, it is advisable to seek a
local agent or distributor.”
 “A local agent or legal representative is required for all government
contracts.”

U.S. Commercial Service Website
http://www.usatrade.gov/Website/CCG.nsf/CCGurl/CCG-COLOMBIA2002-CH-4:-004E9A2E


Ecuador:
An agent is not required but an attorney is recommended. An agent is
legally required if providing products to the government.
“When appointing a local distributor, U.S. firms should seek counsel
from an Ecuadorian law firm to ensure that their distribution
agreements give them appropriate protection. A local agent or
representative is necessary in order to sell successfully in Ecuador
and is legally required for sales to the government.”

U.S. Commercial Service Website
http://www.usatrade.gov/website/ccg.nsf/CCGurl/CCG-ECUADOR2002-CH--006E0715


Guyana: 
An agent is not required but convenient.
“Due to the small size of the local market, most U.S. firms prefer to
use a local agent or distributor. U.S. exporters of consumer products
will find that an agent/distributor arrangement is the most
convenient, practical, and cost-effective mechanism for sales in
Guyana.”

U.S. Commercial Service Website
http://www.usatrade.gov/website/ccg.nsf/CCGurl/CCG-GUYANA2002-CH--005EDAD4


Paraguay:
An agent is advisable and is required if providing products to the
government.
“Foreign manufacturers/suppliers participating in government tenders
must do so through their local legal agents or representatives. Local
law grants Paraguayan companies a 15 percent price advantage over
foreign competitors.”

U.S. Commercial Service Website
http://www.usatrade.gov/Website/CCG.nsf/CCGurl/CCG-PARAGUAY2001-CH-4:-0063F766


Peru:
An agent is recommended and is required if providing products to the
government.
“Appointing an agent or distributor is advisable if your company is
serious about developing the market on a sustained basis.
Peruvian law does not require the use of local distributors for
private sector commercial sales. To sell to the Government of Peru,
the U.S. company or its Peruvian agent/partner must register as a
supplier with the appropriate ministry. The second step is to provide
credentials indicating that the Peruvian firm is a legitimate
representative of the U.S. Company. This can be done by a letter,
notarized by the Peruvian Consulate in the United States and then
registered with the Peruvian Foreign Affairs Ministry. If using an
agent, the individual need not be a Peruvian national, but must be a
resident of Peru.”

U.S. Commercial Service Website
http://www.usatrade.gov/Website/CCG.nsf/CCGurl/CCG-PERU2002-CH--004DD742


Suriname:
An agent is not required but is helpful.
“The Surinamese Chamber of Commerce can help locate local
distributors.  A local distributor remains the best means to enter the
Surinamese market.  As the market is relatively small, most foreign
exporters resort to building relationships with retail firms rather
than establishing a distribution system.”

U.S. Commercial Service Website 
http://www.usatrade.gov/Website/CCG.nsf/CCGurl/CCG-SURINAME2000-CH-IV-006F244E



Uruguay: 
An agent is not required but a local attorney is recommended.
“It is advisable to obtain a local attorney before setting up
operations in Uruguay or carrying-out substantial amounts of business.
Local attorneys can be very helpful in sorting through the red tape
and bureaucracy, which may otherwise be frustrating for a newcomer.”

U.S. Commercial Service Website
http://www.usatrade.gov/Website/CCG.nsf/CCGurl/CCG-URUGUAY2002-CH-4:-0050A5DB



Venezuela:
An agent is required for providing specific products to the government
agencies.
“There are no existing laws or regulations that limit distribution.
All channels are possible: manufacturer's representative or commission
agent; wholesale importing distributor; importing retailer; or direct
sale to end-user. Government agencies usually require that a seller of
specific types of equipment is an authorized seller for the foreign
manufacturer.”

U.S. Commercial Service Website
http://www.usatrade.gov/Website/CCG.nsf/CCGurl/CCG-VENEZUELA2002-CH-4:-005EE065


Search criteria:
://www.google.com/search?site=swr&hl=es&lr=&q=usa+trade+&as_q=country+search

 
Key words used in my search:
USA trade
country search


I hope this answers your question.

Best regards,
Bobbie7-ga
joel1357-ga rated this answer:4 out of 5 stars
Thanks for the answers.   I did some research of my own, and I could
not come up with any countries you forgot.

Thanks,

Joel

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