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Price of Latin American Transport on Exports

06 October 2008

GENERAL - Latin American export growth depends more on costs of transportation, than tariffs, according to new report from the Inter-American Development Bank.

The lack of a Pacific port, hinders the markets of Asia to Argentina and Brazil, the two main beef and grain exporting countries, reports the Argentine Beef Packers S.A.

The countries in the region, are spending 7% of the value of exports on transport costs according to the re

The bank economist Mauricio Mesquita Moreir, who was one of the authors of the report commented “The comparison between the export of one dollar of soy or beef from South America. With one dollar of micro-chips from Asia is very different, as the former is significantly larger. If we divide the weight of the product by its value, the transport cost is much higher for primary products than hi-tec electrical products”.

The reports stated that the cost of air freight in the region was triple that in the China or the USA.

The report recommends a forum to discuss a transport agenda to see where costs can be saved.

TheCattleSite News Desk


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