The specter of competing regional trade deals and a rapidly deteriorating trade balance is pushing the Brazilian government to open up the most closed major economy of the Western Hemisphere. Today’s graphic shows trade balance and trade as percentage of GDP for BRIC, Mexico and U.S.

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An October 3 Latin American tax panel discussed emerging transfer pricing developments at the International Fiscal Association’s 66th Congress in Boston.

Many countries have adopted the OECD guidelines that generally call for arm’s length pricing in related party transactions, although panelists noted that sometimes jurisdictions made their own deviations, including Mexico.

Practitioners from Mexico noted that maquiladoras have a fixed cost plus margin, and thin cap rules are applicable only to related party transactions, irrespective of whether or not there is compliance with the arm’s length standard.

Brazil does not subscribe to the OECD guidelines. Where there is a choice of methods, it was noted that the resale method was most commonly used because the documentation burden for other methods, including cost plus methods could require extensive documentation.  (more…)

The 2012 Reuters Latin American Investment Summit showed a clear contrast between the message the region’s leaders want to send to the world and what the numbers say.

Finance ministers and central bankers interviewed in the summit said Latin America is still well equipped to face another global economic downturn, but businessmen and analysts fear the governments now have less room to move on fiscal and monetary policy than in 2007.

Mexico’s Central Bank Governor Agustin Carstens said the country is in a better position now given record international reserves and a more solid private sector, while Brazil’s Finance Minister Guido Mantega insisted the region’s major economy is now gaining steam. And Chilean President Sebastian Pinera acknowledged the economy is already being impacted by the global crisis, but affirmed the GDP growth outlook for 2012.

The Summit also helped investors understand why Mexican stocks are drawing investors away from Brazil and gave hints about which local banks could end up acquiring the $55 billion BBVA pension funds business in the region.

Major banks such as JPMorgan and Santander referred to Reuters in their reports to clients, pointing out the decision announced by Colombian finance minister to issue all global and domestic bonds planned for this year even if the funds are not needed. The Chilean central bank governor’s comments on his neutral policy bias despite the foreign turbulence was reproduced by Goldman Sachs in a note to clients.

For a summary recap report of the Summit, click here.

Click here to read all the exclusives and full coverage of the Reuters Latin America Investment Summit.

The worst drought in decades in Mexico has forced the country to increase imports of maize to record highs, derailing efforts to increase local production to meet growing demand. Today’s graphic shows the total production and imports of maize in Mexico since 2000.

Wal-Mart Stores Inc. lost $10 billion of its market value on Monday on concerns that a bribery investigation in Mexico could be very costly and hinder its plans to grow. Today’s graphic looks at the company’s international sales, the number of stores it has worldwide and a timeline of recent major scandals.

The outlook for business in the region remains attractive although growth rates are expected to ease in the future.

Boosted by high prices for their mainstay commodity exports, Latin America’s largest emerging markets have racked up dramatic economic growth in recent years and attracted huge inflows of funds. Brazil has established itself as one of the world’s hottest top investment destinations and Argentina, Peru and Chile – currently the fastest growing economies in the region — are expected to expand around 6 percent or more in 2011. Central bankers, policy makers and top executives last week offered their views on the region’s risks and rewards at the Reuters Latin American summit. Stellar growth rates may be over as inflationary pressures and currency appreciation are likely to impact export, consumption and investment, but the region is proving resilient to external shocks.

Download the complete 2011 Latin America Summit Report [PDF]

And, check out some additional information, media and graphics from the Latin America Summit here: (more…)

Today’s INTERACTIVE graphic is filled with information. If you’re looking for economic data for North/South American countries, then you’ve come to the right place. Click through the different tabs to change the economic indicators. You can also select/deselect the countries that you want to show up in the graphs.