The hidden opportunity in the next $2 trillion of US–Latin America trade
The economic link between the United States and Latin America has evolved into one of the most significant trade arteries on the planet. By 2025, this corridor is projected to generate $1.5 trillion in trade. To put that figure in perspective, it represents approximately 1.5 times the total trade volume between the United States and Canada. Furthermore, it is equivalent to 85 percent of the total trade occurring within the European Union. While traditional discussions regarding this corridor often focus on macro elements like inflation, immigration, and commodity cycles, these factors alone do not account for the specific ways US firms are generating lasting value.
THE Scale of the Trade Corridor
Success stories from companies like Canela Media, Nopalera, and Quirch Foods illustrate how Latino consumers and businesses based in the United States are leveraging proprietary advantages. These organizations are turning their unique positions into economic value that benefits their local communities. Latino consumers represent a diverse and expanding demographic that influences various market segments. Additionally, Latino-owned businesses utilize cross-border networks and specialized knowledge to minimize trade friction. This entrepreneurial base is currently expanding productive capacity and fostering innovation across the region.
Geographical hubs play a vital role in connecting these economic advantages. Physical locations such as the customs and logistics centers in El Paso and Laredo, along with the energy and commercial hubs in Houston and Miami, serve as critical nodes. These physical connections are increasingly being extended through digital platforms, allowing the impact of these communities to reach far beyond their immediate geography.
Growth of Latino Owned Businesses
Data indicates a significant surge in entrepreneurial activity within this demographic. Between 2017 and 2023, the number of Latino-owned businesses grew at an annual rate of 7 percent. This expansion significantly outperformed the broader national trend, which remained nearly flat during the same period. Despite this rapid growth, these firms remain underrepresented in several high-impact sectors. Currently, Latino-owned businesses account for 6 percent or less of the firms operating in the information technology, mining, and manufacturing industries.
Reaching the 1.8 Trillion Dollar Mark
Current analysis suggests that relying solely on organic growth may not be enough to maximize the corridor's potential. Instead, a coordinated effort involving governments, trade institutions, and private investors could unlock substantial new value. If a systematic approach is adopted, trade volumes could rise by 2.3 percent every year. This trajectory would bring the total trade value to $1.8 trillion by 2035. Achieving this would provide a major economic opening for Latino consumers and businesses. However, the current advantages remain fragmented. To fully capture this potential, stakeholders must focus on building an integrated ecosystem that can scale these existing strengths across the trade corridor.
Source: mckinsey.com · 2026-10-19