Opportunities for UK-Latin American partnership, with Baroness Chapman

Opportunities for UK-Latin American partnership, with Baroness Chapman

On Thursday 14 November, Canning House hosted Baroness Chapman at its Westminster office for a discussion on the UK’s engagement with Latin America, in its latest Business Breakfast, attended by representatives of a wide variety of sectors including professional services, trade, law, education, mining.

Reflecting on her first months as Minister, and her visits to Latin America since taking on the role, Lady Chapman expressed both optimism and determination, highlighting the need for greater collaboration and mutual understanding, and exploring how the UK Government’s “missions-based” approach to foreign policy and trade aligns with opportunities in the region.

Opening her remarks, Baroness Chapman said that, after what she described as a period of  complexity in British politics in the aftermath of Brexit, the new Labour Government’s adoption of a “missions-based” strategy in UK foreign policy is focused on growth, climate, and security – three areas that she sees strong resonance with Latin America – a region “full of untapped potential” for the UK.

Lady Chapman highlighted Latin America’s appetite for doing business with the UK, citing the UK’s reputation for regulated practices and its firms’ comfort with employing local staff, in what she saw as “real added value to doing business with the UK,” and something the UK should emphasise.

Educational partnerships also emerged as a priority. Stronger links between higher education institutions, alongside initiatives to improve English proficiency, are key to facilitating trade and collaboration. A higher standard of English in Latin America, she put forward, leads to a greater propensity to do business with the UK, noting how British English is highly regarded in Mexico and elsewhere.

Energy, particularly renewable energy, emerged as another key area of collaboration. She highlighted Paraguay’s 100% renewable energy model as a powerful example of what the UK could both support and learn from, particularly in the context of global energy security and the transition to cleaner energy sources.

However, she acknowledged logistical challenges, such as limited direct flights between the UK and Latin America and insufficient intra-regional connectivity. Addressing these issues, she suggested, would unlock further opportunities for trade and investment.

Furthermore, Lady Chapman spoke on the role of UK Export Finance. While the body has played a role in supporting British businesses abroad, she acknowledged that there have been “mixed” reviews regarding its effectiveness.

Turning to broader political issues, Lady Chapman remarked on the region’s relative peacefulness compared to other parts of the world. However, challenges such as migration crises, narcotics and firearms trafficking, and organised crime remain pressing concerns. Venezuela’s failure to transition power was cited as a specific area where international dialogue is needed.

The calibre of leadership in many Latin American countries, she noted, is impressive. However, state institutional capacity – particularly in health and infrastructure – can sometimes lag behind. For the UK, this presents an opportunity to collaborate on projects that strengthen institutional resilience while respecting local contexts.

Lady Chapman acknowledged that the UK has under-engaged with Latin America. “This is a whole region of the planet where the UK hasn’t been as active as it could have been,” she said, highlighting Foreign Secretary David Lammy’s mission to reconnect the UK with the rest of the world, including Latin America, and hailed the efforts of the UK’s network of embassies across the region.

Questions and comments from the audience focused on issues including China, infrastructure investment and UKEF; the implications of the election of Donald Trump as the next president of the United States; fintech and the City of London; the UK’s green ambitions, COP29 and the energy transition; and navigating or removing barriers to trade between the UK and Latin America.

Canning House extends its gratitude to Baroness Chapman for sharing her insights and to attendees for contributing to an engaging conversation on how the UK can strengthen its presence in Latin America; and the audience for their engagement and interest.