Key facts
- China was the fastest-growing buyer of Latin American and Caribbean goods in Q1 2026, with exports up 25%.
- The U.S. remained the region's top market, accounting for nearly 22% of imports.
- Overall Latin American exports grew 16% in Q1 2026, driven by rising volumes and prices of key goods.
- Geopolitical conflicts and trade policy instability are creating significant uncertainty, according to the IDB.
The U.S. maintained its position as Latin America's top trading partner in the first quarter of 2026, despite China's rapid growth as a buyer of regional goods, according to a report by the Inter-American Development Bank (IDB).
Exports from Latin America and the Caribbean to China surged by 25% in the first three months of the year compared to the same period in 2025. This growth outpaced the 14% increase in exports to the U.S. and the 19% rise to the European Union. Shipments to the rest of Asia also showed strong dynamism, increasing by 24%.
Despite China's accelerating trade, the U.S. secured the largest share of the region's imports, reaching a record near 22%, while China's share slightly decreased to 9.6%. This U.S. dominance is largely attributed to its strong trade relationships with Mexico and Central America, whereas China leads in trade with much of South America.
Overall, Latin American exports grew by nearly 16% in the first quarter of 2026, a significant acceleration from the 8% annual growth seen throughout 2025. This expansion was fueled by increased volumes and higher prices for key commodities such as gold, copper, oil, and soybeans. However, coffee and sugar prices experienced declines of over 20%.
The report also highlighted the impact of geopolitical events, including the U.S.-Israeli war with Iran, which caused fuel prices to soar. This surge in energy costs, alongside increased fertilizer and freight expenses, negatively affected import-dependent nations and even oil exporters.
In Venezuela, total exports fell by 8.7% in the first quarter of 2026. This decline occurred even as exports to the U.S. saw a slight increase, following U.S. oversight of the OPEC nation's crude sector after President Nicolas Maduro's capture. The IDB warned that instability in global trade policies and escalating geopolitical conflicts are creating substantial uncertainty, presenting both risks and opportunities for the region.