Jack Jensen has seen plenty of changes since he set up shop as an importer more than 30 years ago at the Port of New Orleans.
During that time, lowered trade barriers, improved infrastructure and technological advances have made doing business in Latin America cheaper and more practical, Jensen tells Business Report in a feature from the current issue.
In the early days, Jensen focused his attention on Central America for importing produce and agricultural products, then later began buying and transporting Brazilian granite. Today, operating as Jensen Cos., he is one of the largest importers of granite in the U.S.
Jensen points to the advent of shipping containers as having the single greatest impact on the importing industry.
“Back in the 1980s and early 1990s, most product was stacked into the hull of a vessel,” he says. “In the 1990s, the containers took off like crazy. Today, virtually everything is shipped that way, and it has made the world a much smaller place.”
The containers allow for more efficient transportation, as well as easier and less expensive offloading at the port.
Jensen’s success story is not unique. Other companies across Louisiana and the South are either expressing interest or actively doing business with Latin America. The potential profitability of tapping into the growing “world market” afforded by NAFTA and other incentives is too hard to ignore.
Recognizing the growing interest among its clientele, Baton Rouge law firm Breazeale, Sachse & Wilson has increased efforts to brief clients about the incentives and potential pitfalls of doing business in Latin America. Frequently leading the discussion has been Saul Newsome, a member of the firm who specializes in international trade and foreign direct investment.
Newsome acknowledges that the biggest hurdle faced by some Latin American countries is perception.
“U.S. industry is looking for stability in the government, stability in the laws and freedom from corruption,” Newsome says. “Some countries are making headway in this regard. Peru has been cracking down on what was perceived as corruption within its own national police. They’ve tackled that head on.”
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