China emerged as the fastest-growing destination for goods from Latin America and the Caribbean in the first three months of 2026, according to a report published by the Inter-American Development Bank. Exports to China rose 25% compared with the same period in 2025, the IDB found, while shipments to the rest of Asia climbed 24%, to the European Union were up 19%, and to the United States increased 14%.
Despite China’s rapid growth as a buyer, the United States remained the largest market for the region. The IDB attributed the U.S. position to strong trade relationships with Mexico and countries in Central America, whereas China led in much of South America. In absolute contribution to the region’s export growth the IDB said, "The United States contributed most to the total increase in Latin American and Caribbean exports, whilst China and the rest of Asia showed the greatest dynamism."
The report also examined import flows into Latin America and the Caribbean. Shipments from China into the region jumped 29% year-on-year, while U.S. exports to the region rose by about 4%. Those movements lifted the U.S. share of the region’s imports to a record near 22%, while China’s share edged down slightly to 9.6%.
Overall exports from Latin America recorded almost 16% growth in the first quarter of 2026 relative to the same period in 2025, roughly double the 8% annual growth the region experienced throughout 2025. The IDB tied that acceleration to increases in both volumes and prices for key goods produced in the region.
Commodity price swings were pronounced. The report noted that the price of gold surged 64% between January and April, a move the IDB described in the context of investor behaviour in volatile times. Copper, oil, soybean and iron ore prices also rose, though to a lesser extent, while coffee and sugar prices declined by more than 20%.
The IDB highlighted the role of geopolitical events in shaping trade and price dynamics. It reported that the U.S.-Israeli war with Iran sent fuel prices sharply higher, a development that hit import-dependent economies particularly hard. The resulting rise in fertilizer and freight costs affected both importers and exporters; even oil-exporting countries that benefited from higher crude prices faced increased costs in other inputs.
The report offered country-level detail as well. Venezuela’s total exports declined 8.7% in the first quarter of 2026 compared with the same period a year earlier. The IDB noted that Venezuelan exports to the United States rose slightly after the United States captured President Nicolas Maduro at the start of the year and imposed significant oversight over the OPEC nation’s crude sector.
On risks and outlook, the IDB cautioned that "instability in global trade policies and the proliferation of geopolitical conflicts are creating a high degree of uncertainty" and said this environment presents "both risks and opportunities for the region." The report therefore frames the recent trade gains against a backdrop of uneven commodity price moves and elevated geopolitical risk.
Summary
The IDB found China to be the fastest-growing buyer of Latin American and Caribbean goods in Q1 2026, with exports up 25% year-on-year, while the United States remained the region’s largest market due to its trade ties with Mexico and Central America. Regional exports rose nearly 16% as commodity prices and volumes increased, but geopolitical tensions and related cost shocks have introduced substantial uncertainty.
- Key sectors affected: commodities (metals, energy, agriculture), shipping and freight, and national oil sectors.
- Notable country detail: Venezuela saw total exports fall 8.7% in Q1 2026 amid increased U.S. oversight of its crude sector.